Shrimp exports to US under anti-dumping scanner

US consumption of warm-water shrimp in 2011 was 1.3 billion pounds, of which 87.6% came through imports

The US Department of Commerce (DoC) has started a countervailing duty (CVD) investigation against India and six other countries on export of shrimp to that country, covering the period January 1-December 31, 2011.

The other countries are China, Ecuador, Indonesia, Malaysia, Thailand and Vietnam. The investigation was initiated on the basis of a preliminary finding that 21 subsidy programmes extended to seafood exporters in India merit further investigation. This is based on a complaint by the US shrimp industry.

Among the Indian programmes under the scanner are the Duty Entitlement Pass Book Scheme, tax and duty incentives under the Special Economic Zone programme and the export-oriented units programme, duty incentives under the Export Promotion Capital Goods programme, export financing, export credit insurance, subsidised loans to the marine products industry, the Development of Inland Fisheries and Aquaculture scheme, assistance from the National Fisheries Development Board and 13 subsidy / assistance schemes of the Marine Products Export Development Authority (MPEDA). Another 25 such subsidy schemes of China, seven of Ecuador, 14 of Indonesia, 16 of Malaysia, 12 of Thailand and 20 of Vietnam are also being scrutinised.

In February, a US International Trade Commission panel said there was reasonable indication that the US shrimp industry was being materially injured by import of allegedly subsidised shrimp from these countries.

Consumption of warm-water shrimp in the US in 2011 was 1.3 billion pounds, of which 87.6 per cent came through imports. In 2011, the US imported shrimp products worth $4.3 bn from these countries, 86 per cent of the total value of shrimps imported that year.

The move has left Kochi-based exporters concerned. "A high rate of CVD will seriously affect our exports to the US," one of them told Business Standard.

The US is the largest importer of Indian seafood, in value terms. The industry is faced with a drop in exports to other major markets, such as the European Union, Japan, Southeast Asia and China. During April-September 2012, the US imported 45,540 tonnes, valued at Rs 1,947 crore. This is a growth of 11.4 per cent in value terms. The US was the only country with growth in exports during that period, shows data from the MPEDA.

In 2005, DoC had imposed an 11.7 per cent anti-dumping duty on shrimp, causing a steep fall in exports. This was based on a petition filed by the Southern Shrimp Alliance. Around 280 exporters were shipping shrimp to the US during that period; this fell to 68 in 2009. Later, the US dropped the duty to 2.52 per cent.