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US scuttles Indian plea for WTO panel on shrimp

G. Srinivasan

ANTI-DUMPING DISPUTE

New Delhi , Nov. 2

The US has succeeded in blocking the first-time plea of India for a panel in the World Trade Organisation (WTO) to examine the US customs bond directive on imports of certain frozen and canned warm water shrimp from India and five other countries.

This puts paid to the hope of domestic marine product export industry to get its grievances redressed against the directive on its shrimp exports, which is by the far the major chunk of India's marine product exports.

At its recent Dispute Settlement Body (DSB) meeting in Geneva, India argued that the amended bond directive, under which the US could require importers of certain marine product items to post a bond covering the total estimated anti-dumping and countervailing duties on the value of imports of a particular product for the previous 12 months, was `burdensome'.

Besides, New Delhi contended that this also breached a host of provisions of GATT 1994, the Anti-Dumping Agreement and the Subsidies Agreement.

India argued that the directive was being applied in an "arbitrary and discriminatory manner" and said this had only been applied to imports of certain frozen and canned warm water shrimp from India and five other countries. India further contended that while consultations between the parties had been useful, they had failed to resolve the dispute between the parties, leaving India with little option other than to plead a panel to resolve the row.

However, at the DSB meeting, the US expressed "disappointment" with the decision by India to request a panel and stated that members had the right to ensure that importers paid duties owed. The US further stated that it had been working with India to understand its concerns and address them, and as such, the plea was premature and the US could not consent to the establishment of a panel at the extant meeting.

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