Centre likely to move WTO

US shrimp export logjam

The Centre may consider approaching the World Trade Organisation (WTO) to get the US to withdraw anti-dumping duty on shrimp exports.

The move follows the government's failure to gain sympathy from the US for shrimp farmers who were hit by Tsunami in 2004.

India may also seek to overrule another US regulation (of November 2004) that imposes an additional security bond on Indian exporters of aquaculture products. This bond is in addition to the anti-dumping duty already levied.

Indian exporters have earlier filed an appeal before the US Court of International Trade, New York against this bond requirement as it in effect doubles anti-dumping duty.

Under the provision, Indian exporters have to make full cash deposits for anti-dumping duty and also execute security bonds covering one year's estimated anti-dumping duty liability from here.

According to sources, the Commerce Ministry is now considering approaching the WTO on these issues. The commerce ministry has sought to know if the US has any other way of reassuring Indian exporters that the duty will be lifted soon.

The shrimp anti-dumping investigation was first initiated by the United States Department of Commerce in January 2004.

The investigation was to ascertain whether the imported shrimp was sold at "less than fair value" in the US and whether such imports caused material injury to the US industry.

The commerce department selected three Indian companies as representative of Indian shrimp exporters and called for extensive data from these companies. It came to the conclusion in August 2004 that that Indian shrimp was indeed dumped in the US and thus imposed provisional anti-dumping duty on Indian shrimp imports into the US from August 2004.

After the Tsunami the US ITC had invited comments from all interested parties on the issue as to whether they should initiate the Changed Circumstances Review of the matter, giving hope to Indian exporters.

But November 2, 2005, the US ITC determined that the existing anti-dumping duty on import of shrimps from India and Thailand will continue.