On Friday, the Coalition of Gulf Shrimp Industries (COGSI) filed a petition with the US Government seeking relief from the subsidized shrimp imports from seven countries which include India. The Executive Director of COGSI, Mr. C .David Veal summed up the essence of their petitions in a single note: “Today’s filing is about the survival of the entire US shrimp industry”. In a press statement, the COGSI argued that the shrimp producers from these seven countries have captured the US market share and the US shrimp producers could not compete with them because of the “artificially low-priced” imported shrimp; the low-pricing was made possible through heavy subsidies by the governments. Moreover, since shrimp happens to be the major export commodity in all these seven countries, their governments have set specific growth and export targets. The petitioners have documented about 100 programmes that assuredly benefit the shrimp producers in those countries. They seek, ultimately, US to impose countervailing duties (CVD) on shrimp from these countries so that the unfair trade advantage now enjoyed by these countries could be offset.The US International Trade Commission (USITC) and the Department of Commerce will go into the details of the petitions and the final decisions are expected in the second half of 2013.
USITC will arrive at its findings through questionnaires to be sent to US producers, importers and foreign exporters next week. Being constituted with six commissioners, the majority of four is needed to decide the nature of the vote of USITC. If four vote negatively, the case ends; on the other hand, if the vote is affirmative, the case will continue. Next, the Department of Commerce will continue its own investigation through giving questionnaires to the government and largest packers and will also conduct verification after issuing a preliminary determination of CVD.
Caution is the parent of safety; and, safety is the goal of all.
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