India has joined China in protesting that US proposals to penalize mostly Asian shrimp exporters for alleged dumping are inconsistent with World Trade Organization (WTO) rules. Vietnam and Indonesia have also denounced the move by the US International Trade Commission (ITC)
"India expressed its concerns about the protective regime followed by USA with regard to shrimps, WTO inconsistent actions taken by US Authorities and gross deficiencies in the petition," Minister of State for Commerce and Industry Daggubati Purandeswari said in a written statement to the Rajya Sabha, the Indian Parliament's Council of States.
The US ITC is acting in response to a petition Dec. 28 by the Coalition of Gulf Shrimp Industries to impose a countervailing duty as well as an anti-dumping duty on imports of shrimp from China, Thailand, Vietnam, Ecuador, Indonesia, Malaysia as well as India because of alleged subsidies. On Feb. 7, ITC commissioners voted 5-1 that there was "a reasonable indication" that those subsidies exist, and that the investigation should continue. A preliminary determination is due March 25.
India has held consultations with the US Department of Commerce (DOC) on the subject matter and met with US ITC on Jan. 14. In China, meanwhile, Shen Danyang, spokesman for the Ministry of Commerce (MOC), also complained recently about the US imposition of both anti-dumping and countervailing duties on its products. Asked about the anti-subsidy investigations by the DOC, the first such investigation against Chinese agricultural products, Shen reiterated that the imposition by the US of anti-subsidy duties against a non-market economy (NME), such as China, is in violation of WTO rules (One of the Chinese exporters named by the ITC -- Zhanjiang Guolian Aquatic Products Co Ltd -- has set up a group of lawyers to cope with the anti-dumping investigation).
Shen also confirmed that the Chinese Government "attaches great importance to the country's agricultural sector, and to trade remedy investigations involving its products, and hoped that the US will treat the case carefully, avoiding a negative impact on bilateral economic and trade relations and cooperation in agriculture. China is determined to maintain domestic production of warm water shrimp and its exporters' legitimate rights and interests."
