US extends duty on Indian shrimp exports for 5 years

The ASPA welcomed the extension of the anti-dumping orders

In a setback to the $4.7-billion Indian seafood exports sector, the United States International Trade Commission (USITC) has unanimously voted to extend the anti-dumping orders on imports of frozen warm water shrimps for five more years. The US is the largest market for Indian exporters. The existing anti-dumping duty orders on imports of the perishable product from China, Thailand, and Vietnam will also remain in place. 

“The USITC determined that revoking the existing anti-dumping duty orders on imports of frozen warm water shrimps from China, India, Thailand, and Vietnam would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time,” an official statement said. 

The American Shrimp Processors Association (ASPA) welcomed the extension of the anti-dumping orders. “We at ASPA are grateful that the USITC affirmed evidence of the risk that dumped shrimp imports from these five nations poses to the domestic shrimp industry,” Executive Director David Veal said. This action was part of the sunset review process mandated by the Uruguay Round Agreements Act. 

The anti-dumping duty was imposed on Indian frozen warm water shrimps in 2004-05. “USITC voted 5-0 against us. The USITC voted to remove the orders on Brazil,” said Tara Patnaik, chairman, Falcon Marine Exports, the country’s largest exporter.

“The exporters have to do business without knowing the rate of duty in advance. We have to do business amid the uncertainty.”

The Act requires the US Department of Commerce (DoC) to revoke an anti-dumping or countervailing duty order, or terminate a suspension agreement, after five years unless the DoC and the USITC determine that revoking the order or terminating the suspension agreement might lead to continuation or recurrence of dumping or subsidies (DoC) and of material injury (USITC) within a reasonably foreseeable time. 

The US is the largest importer of Indian seafood with a share of 28.46 per cent in dollar terms. Total exports to the US stood at $1,334.05 million in 2015-16.