In Brief
US SHRIMP FISHERS SEEK PROTECTION AGAINST ASIAN IMPORTS
Shrimpers from eight US states recently asked the government to impose a tariff to protect them from low-cost Asian competitors. Shrimp is now the most popular US seafood and more than 85 percent of US shrimp is imported, at a value of USD 3.4 billion a year. While US shrimp imports almost doubled from 1996 to 2002 and have increased by 14 percent in the first half of 2003, US shrimp production has remained flat. Correspondingly, US domestic prices of shrimp have almost halved since 1998. The long-established American fishing industry has been unable to compete and so has leveled allegations of dumping against several countries. The case could damage relations with several of the US’ largest Asian trading partners, including Thailand, Vietnam, and India. Trade relations with Vietnam are already tense as a result of US tariffs placed on imported catfish earlier this year (see BRIDGES Trade BioRes, 25 August 2003). At the time Vietnam feared that its shrimp industry might be the next target of the US fishing industry. Vietnam has denied dumping shrimp into the US market and has developed a cynical view of US views on free trade. "It seems totally unfair that [the US] can insist on free trade and opening of the Vietnamese market and whenever there is a successful Vietnamese export, the Americans slap it down," says Tony Foster, chair of the Hanoi chapter of the American Chamber of Commerce in Vietnam. Vietnam is the second largest exporter of shrimp to the US after Thailand.
"US shrimp fishermen seek tariffs safety net," FT, 29 September 2003.
WTO MEMBERS LOOK FOR GUIDANCE AFTER CANCUN COLLAPSE
In contrast to the last frantic hours in Cancun, Mexico, following the collapse of trade talks on 14 September (see BRIDGES Trade BioRes, 19 September 2003), the journey back to Geneva has been quiet and gradual. For now, all negotiating sessions for agriculture and non-agricultural market access have been cancelled, while Members are awaiting guidance from the next General Council session, currently scheduled for 20-22 October. Agriculture is likely to become the most pressing issue with the ‘peace clause’ set to expire by the end of the year. Under the ‘peace clause’, WTO members have agreed not to challenge agricultural subsidies in the WTO. While Members of the G-22 group of developing countries regard the expiration of the ‘peace clause’ a non-issue completely decoupled from the ongoing agriculture negotiations, others, such as the EC (which has benefited from the ‘peace clause’), consider its renewal a precondition for continuing negotiations.
Also likely to be of relevance here are continuing efforts within the EU to reform the Common Agricultural Policy (CAP), including new proposals by the European Commission for decoupling subsidies for products previously not covered by the CAP, such as sugar, cotton, tobacco and olive oil — some of which are of major export interest for developing countries (see BRIDGES Weekly, 25 September 2003). Geneva sources cautioned that the failure of ministers to agree on a framework for agricultural reform in Cancun could lead to the more conservative voices in the EU gaining ground and pushing for smaller reforms.
ICTSD reporting.