Shrimpy prices not fair, U.S. rules
The decision from the Commerce Department clears the way for a final ruling in January that could order punitive tariffs.
By NORA KOCH, Times Staff Writer
Published December 1, 2004
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Gulf shrimpers heard heartening news Tuesday when the U.S. Department of Commerce concluded that China and Vietnam have been dumping shrimp on the American market.
The decision brings punitive duties one step closer for shrimp coming in from the two Asian nations, whose U.S. imports totaled more than $1-billion in 2003.
Lifelong shrimper John Williams of Tarpon Springs said the decision was a major one for his cause.
"I want the shrimp industry to be there if (future generations) choose to do it," said Williams, an officer with the Southern Shrimp Alliance, which brought the antidumping petition. The alliance represents shrimpers in eight states, including Florida. "We don't let some people in another part of the world that's violating fair trade dictate to my children and my grandchildren what they want to do with their life, and that's what's happening."
While down-and-out U.S. shrimpers felt vindicated in their fight against cheap imports, American seafood distributors warned that duties could lead to a reduced supply.
Retail shrimp prices could rise as high as 44 percent, according to a study by an industry task force that includes the American Seafood Distributors Association. And domestic shrimpers would not be better off, said Wally Stevens, the association's president and president of Slade Gorton Co. Inc. Nearly 90 percent of the shrimp consumed in the United States is imported.
"Filing a dumping case is not a solution for this environment," he said. "It is that they must improve the quality, reduce fishing and market better - and charge the consumer for that."
Under Tuesday's ruling, final dumping margins for Vietnamese shrimp range from 4.13 percent to 25.76 percent. For Chinese shrimp, margins spanned from zero to 112.81 percent.
The Commerce Department this month will issue a ruling on four other countries - Thailand, Brazil, India and Ecuador - also named in the antidumping petition. Vietnam and China were considered separately because they are considered nonmarket economies.
In January, the U.S. International Trade Commission will announce its final ruling on whether the dumping has materially injured U.S. shrimpers. If it finds in favor of the shrimpers, the duties will go into effect. If imposed, the duties would remain in place for five years. Then the Commerce Department would review its decision.
Today the ITC is hearing testimony in Washington on whether dumping has injured the industry. Eight members of the Southern Shrimp Alliance will testify that it has. American shrimpers claim they are being slowly squeezed out of business by pond-raised foreign shrimp sold on the U.S. market at lower prices than in their home nation.
The shrimp alliance asked for duties of up to 267 percent on shrimp imports from the six countries. In February the trade commission found imports were a factor in depressing U.S. prices, a finding necessary to build a successful antidumping case.
The shrimp alliance has a four-prong plan to revive its industry, Williams said, including advocating for more stringent testing of imported shrimp, branding its product, requiring seafood be labeled with its country of origin and the antidumping petition.
Local shrimpers say Tuesday's decision is encouraging. Julie Russell, who owns Pelican Point Seafood in Tarpon Springs and runs a shrimp boat out of there, hopes the tariffs go into effect. "Our boat has had a couple of very good trips, but the fuel prices being so high, and the price of shrimp being so low it's not putting any money in our pockets, so we really need some relief," she said.
Nora Koch can be reached at nkoch@sptimes.com or 727 771-4304.
[Last modified December 1, 2004, 00:33:20]
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