Bridges Trade BioRes • Volume 4 • Number 14 • 23rd July 2004

New US Tariffs on Shrimp Imports from China and Vietnam

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On 6 July, the US Commerce Department proposed new tariffs on shrimp imports from China and Vietnam. The announcement followed a decision by the US International Trade Commission (ITC) that exporters in these countries had been dumping shrimp into the US at artificially low prices. The proposed tariffs, which will go into effect shortly, range from 8 to 113 percent on Chinese exporters, and 12 to 93 percent on Vietnamese exports. However, the Commerce Department will not set final dumping penalties until after the ITC makes its final ruling in January 2005 on whether the US shrimp industry is being harmed by these imports. The tariffs will only apply to frozen and canned warm-water shrimp and prawns, and do not affect breaded, fresh, dried and coldwater shrimp and prawns, and shrimp found in prepared meals.

This decision is part of a preliminary ruling in an antidumping case launched by US shrimpers and processors last year (see BRIDGES Trade BioRes, 3 October 2003). The shrimpers filed the case to combat low domestic shrimp prices. They claim the value of the US shrimp harvest was more than halved between 2000 and 2002, decreasing from US$1.25 billion to US$560 million, because of the dumping of cheap imports. The case is against six countries in total, but decisions against Thailand, Brazil, Ecuador and India are not expected until later this month. Shrimp from these six countries account for 75 percent of total US imports of frozen and canned warm-water shrimp. Not everyone in the US is happy about this decision. US seafood distributors and retailers are opposed to the duties, claiming they will drive up shrimp prices by as much as 44 percent and reduce consumption.

“Update 2: US proposes Tariffs on China Shrimp,” FORBES, 6 July 2004; “US Proposes Tariffs on Shrimp Imports,” BOSTON GLOBE, 6 July 2004.