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."