Business Standard

Tsunami may ease way for seafood exports to US

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Sambit Saha Kolkata
India may appeal to the international trade committee (ITC) of United States seeking review of the anti-dumping duty slapped on Indian shrimp export on the ground that the tsunami of December 26, 2004, had ruined fishermen and they needed access to markets to earn money and rebuild their lives.
 
ITC on Thursday confirmed that injury did take place due to export of Indian shrimp to USA. ITC confirmation would lead to continuation of the 9.45 per cent import duty imposed since December 2004, hitting Indian exports.
 
However, while delivering the judgment yesterday, ITC allowed India and Thailand to appeal in the changed circumstances.
 
ITC allows a review petition only after one year of the order but India and Thailand, as major exporters of shrimp severely hurt by the ocean surge, can appeal against the duty immediately.
 
"Exporters are looking at the implications of the order. In another four-five days, exporters will have a clear understanding of the damage and decide on what can be done," T Raghunath Reddy, secretary general of Seafood Exporters Association of India (SEAI), told Business Standard.
 
ITC offered this soft option only to India and Thailand as China, Brazil, Vietnam and Equador cannot file the appeal immediately.
 
Mohan Kumar, chairman, Marine Product Export Development Authority, said the government would explore all options. "Once we get the order, a game plan can be worked out," Kumar told Business Standard.
 
Apart from ITC, Indian shrimp exporters could appeal to Court of International Trade and World Trade Organisation.
 
Preliminary duties were imposed by US ITC on three companies with Hindustan Lever Ltd (HLL) attracting the highest tariff.
 
ITC slapped a duty of 14.2 per cent in July 2004 on Indian shrimp but reduced it to 9.45 per cent in December 2004. US is the second largest buyer of Indian shrimp following Japan.
 
India's total marine product export was to the tune of $ 1.4 billion of which 60 per cent contributed by shrimp. Nearly 25 per cent of that was sold to the US.
 
Thailand and Vietnam were major competitors. Thailand was the biggest shrimp exporter to US last year, supplying about a quarter of US imports, followed by Vietnam.

 
 

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First Published: Jan 08 2005 | 12:00 AM IST

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