Shrimp exporters to move US trade body for full waiver of anti-dumping duty

US is the largest importer of Indian seafood with 28% share in dollar terms, at $1,334 mn in 2015-16

Indian seafood exporters will move the United States International Trade Commission (USITC), a quasi-judicial federal agency with broad investigative responsibilities on matters of trade, for complete waiver of anti-dumping duty after five years.

Recently, the commission had voted against revoking the existing anti-dumping duty orders on imports of frozen warm water shrimps from India jolting the $4.7 billion seafood industry here.

It also voted to extend the anti-dumping orders on shrimp imports for five more years on shrimp from China, India, Thailand and Vietnam.

"The US will review the duty every year and finalise a rate. We will again move USITC after five years for the sunset review", said Tara Patnaik, chairman, Falcon Marine Exports Ltd, the country's largest exporter.

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

The recent order of USITC of continuation of duty was part of the sunset review process mandated by the Uruguay Round Agreements Act. The Act requires the 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 (commerce) within a reasonably foreseeable time.

The anti-dumping duty was imposed on Indian frozen warm water shrimps in 2004-05. US did not repeal the duty in the first five years and, in fact, extended it by another five years. The American Shrimp Processors Association (ASPA) has welcomed the extension of the anti-dumping orders by USITC on shrimp from China, India, Thailand and Vietnam for an additional five years.

It may be noted that India is a major supplier of marine products to the US, and has emerged over the last few years as the largest supplier of shrimps to the US. The country commands premium prices for excellent quality shrimps, having overtaken Thailand and other countries as a leading supplier of the produce.