India, Brazil, Thailand protest planned U.S. shrimps tariffs
India, Brazil, Thailand protest planned U.S. shrimps tariffs
Daniel Cooney Associated Press Bangkok
Proposed U.S. tariffs on imports from four of the world's largest shrimp-producing nations sparked protests Friday with Brazil, India and Thailand denying dumping shellfish on the U.S. market at artificially low prices.
Brazilian shrimp farmers, who tripled production in five years to profit from rising worldwide demand, said they plan to appeal the proposed tariffs that could run as high as 68 percent for Latin America's largest country.
Lower tariffs have been proposed against India and Thailand, as well as Ecuador. The U.S. administration claims that the low prices at which the four nations have been selling their shrimp in the United States has hurt domestic producers.
The announcement Thursday came three weeks after the United States proposed tariffs on shrimp from China and Vietnam. In all, the six countries provide about 75 percent of the shrimp Americans eat.
Prawns and shrimps are much more expensive in the United States than in Asia, South America and southern Africa. Although the latest proposal is preliminary, it is expected to stand. The U.S. Commerce Department will make a final decision in a few months.
Even though Thailand denies the dumping charges, government officials and industry leaders said the country may actually benefit from the U.S. ruling.
Tariffs on Thai shrimp are expected to average 6.4 percent, significantly lower than those Brazil and other nations face.
"It's a good opportunity for Thai shrimp farmers," said Somsak Paneetatyasai, president of the Thai Shrimp Association. "Thailand has the lowest rate among the six countries, so it benefits the shrimp industry in Thailand because our competitiveness is better than before."
Indian shrimp exporters, who face tariffs of 4 percent to 27 percent, said the proposal was "unfair and unwarranted."
"We are very disappointed by the ruling," Abraham Tharakan, president of the Seafood Exporters Association of India, told The Associated Press.
He said the association had hired a U.S.-based law firm to defend its interest.
"I hope justice will be done to countries like India because we have not been dumping cheap shrimp in U.S. markets," Tharakan added.
Itamar Rocha, president of the Brazilian Shrimp Farmers Association, also denied selling at artificially low prices.
"This is not dumping," Rocha said. "What we have are good Brazilian entrepreneurs who identified a market and built businesses to supply the demand."
Rocha said the association will soon map its legal strategy to contest the decision. Brazil's Foreign Ministry said the government will study ways to challenge the proposed tariffs with the 147-nation World Trade Organization.
Brazil, like other developing countries where shrimp are grown in manmade lagoons from larvae hatched in laboratories, benefits from low labor costs and a temperate climate. And the industry's heart in northeastern Brazil near the Equator has year-round sunshine and warm temperatures that make for near-perfect shrimp growing conditions.
"America can't compete with our region because it doesn't have our conditions," Rocha said.
While American food producers receive government subsidies seen as lavish in developing countries, Rocha added, "the government of Brazil does not help Brazilian shrimp producers with subsidies."
Warren Connelly, a trade lawyer for Ecuador, said "the only thing I can say is that the gap between the allegations and the reality is significant."