• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Deeptha Rajkumar

KOCHI, Oct. 1

SHRIMP industry representatives in the US are reportedly coming together to discuss filing a lawsuit against countries whose rock bottom shrimp prices have hurt the US shrimp industry.

According to sources, a successful lawsuit could result in new tariffs on imported shrimp and could be the first step toward import quotas.

It is reliably learnt that the shrimpers are considering suing countries as China, Vietnam, Thailand etc. ``They are targeting major seafood exporting nations from Asia. India could be one among them,'' sources told Business Line. The term `shrimpers' includes aquaculture farmers and vessel owners.

Coming in the wake of the antibiotic controversy, which is dogging exports to Europe, this development could prove to be a litmus test for India's seafood exporting community. These two destinations, Europe and the US, together account for well over 40 per cent of the country's billion dollar marine exports.

When contacted, Mr K. Jose Cyriac, Chairman, MPEDA, said they were aware of the move. ``We categorically deny that there has ever been any dumping by us. Unlike the US, we do not have a domestic market and we are definitely not selling at lower prices. If they move an anti-dumping case against us we will defend it,'' he said.

According to him, given our kind of export, moving an anti-dumping case against us will only weaken their case.

However, sources in the industry were not that optimistic. ``This is directly against free trade. Currently there is no duty on shrimp exports. If they are successful in their attempts we could end up paying huge duties,'' a source said.

Also under the Bird Amendment of US law, money collected from these duties would be paid to the people who filed the case, which would be in direct violation of WTO rules.

Shrimpers in the US maintain that increasing quantities of imported pond-raised shrimp are the reason US docks and processors are paying far less for domestic wild-caught shrimp than they have in 20 years making for disastrous spring and fall seasons in 2002.

Low dockside prices are squeezing shrimpers and plummeting world market prices have narrowed — in some cases eliminated — profit margins for the processors who buy their catches.

Sources said the seriousness of the situation could be judged by the fact that boat owners or shrimpers are setting up a fund to file and fight the lawsuit.

Estimated initial costs, sources said, have been pegged around $1 million. ``We have learnt that in a recent meeting it was decided that each boat owner would contribute $100 towards this fund,'' they said.

However, once the fund is set up and the case filed, it will leave India with very little time to gear itself up to confront the issue. ``We are keeping a close track on the developments. In the next one week, we will get a clearer picture,'' sources said.

If shrimp representatives approve the lawyers' plan, then there is expected to be a 30-day research period that will allow the lawyers to refine their strategies, followed by another meeting.

``They have two to three options under consideration. We are not yet clear on whether it will be against all categories of shrimp exported or against a particular shrimp species, '' sources said.

It is also not yet clear whether the case filed will be under Section 201 of the US Trade Law or under the Anti-dumping Law.

Whatever be the section the case is filed under, the key element of any successful anti-dumping petition is proof that a product is not only sold cheaply once exported but that it is sold cheaper than the exporting country's own domestic prices.

However, on their part, MPEDA has cautioned the seafood exporters community on this development and asked them to take the issue seriously.

``MPEDA will support the exporters 100 per cent on this. On our part we have told them to provide all the data required while answering the questionnaire that is likely to be sent to them by the US. For, once an anti-dumping suit is filed, there will be no going back,'' Mr Cyriac said.

Send this article to Friends by E-Mail
Comment on this article to BLFeedback@thehindu.co.in

Stories in this Section
Monsanto teams up with UAS

Copyright © 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line