But Tran Thien Hai, chairman of the Vietnam Seafood Exporters and Producers (VASEP), said that the Vietnamese shrimp farming industry operates on free market principles and doesn't receive any government subsidies. VASEP has contacted its members and consulted its lawyers in case the CGSI lawsuit is accepted.
The countries covered by the petitions exported $4.3 billion worth of shrimp to the US in 2011, accounting for 85% of imports and over three quarters of the domestic market. The petitions will have to be investigated by the US International Trade Commission and the Department of Commerce, with final determinations expected in the second half of 2013.
"Today's filing is about the survival of the entire US shrimp industry," said C. David Veal, executive director of the Coalition. "Our harvesters, docks, and processors have all played a vital role in the economy and culture of the Gulf region throughout its history. This case will help determine whether together we can continue to create jobs, contribute to economic growth, and sustain communities across the Gulf states for years to come."
US producers were lobbying against imports even before they took another hit from the BP oil spill in 2010, saying that shrimp producers in the seven Asian countries have gained US market share by aggressively undercutting domestic prices through the use of billions of dollars in assistance from their respective governments.
Subsidized imports have suppressed and depressed domestic prices, eroding domestic sales, destroying US jobs, and eliminating the operating margins of domestic producers.
Shrimp is a major export commodity in each of these seven countries, and their governments have set specific growth and export targets for their domestic shrimp industries as part of their national economic development plans," said Veal. "To meet these targets, these foreign governments are spending billions of dollars on subsidies for their shrimp industries, including grants, investments, low interest loans, tax breaks, the provision of land, shrimp feed, and other key inputs, and export
credits and guarantees."
