India is teaming up with south Asian countries to fight the anti-dumping charge by the United States on shrimp exports.
K Jose Cyriac, chairman of Marine Product Export Development Authority said talks were on with the countries, which might be charged with dumping shrimp to the US.
"We are discussing the issues with other countries which are likely to be labelled with dumping charges," Cyriac said. There were 12 such countries including India, Thailand and Vietnam.
The Indian move follows decision of shrimpers of eight US states to launch a controversial trade case that would ask the US government to impose tariffs to stem the phenomenal growth in imports of shrimps.
The basis of the shrimpers' decision was the growth in imports left the US industry with a declining share of a booming business.
The US is the second largest buyer of Indian shrimp following Japan. India's total marine product exports were to the tune of $ 1.4 billion.
Of this, shrimp earned 60 per cent. Nearly 25 per cent of the shrimp exports went to the US. If anti-dumping duties were imposed, exports worth Rs 1,000 crore (Rs 10 billion) would be in trouble.
Nearly 25 Indian companies export to the US. Industry anticipated the case could be filed against six to seven big players, asking them to defend the case in the US court.
Alongside, Seafood Exporters' Association India, the apex body of exporters, was planning to fight the case from the platform of the organisation as a mark of solidarity. "We will back each indicted company," Ranjit Bhattacharya, secretary general, SEAI said.
MPEDA, on the other hand, has decided to extend all co-operation to the exporters. "The case will be against the shrimp exporters. They have to defend themselves. MPEDA will provide all help to them," Cyriac said.
The US department of commerce would decide whether there was a case against exporting countries like India. The duty, if any, will then be fixed by the United States Internal Trade Control.
"They have to prove that we are selling shrimp in the US at prices below sale price in India. If there is no significant domestic market (as in the case in India), they need to show that we are selling in US at prices below what we are selling in another market (say, Japan). If there is no other market, they need to show that we are selling below our cost of production," Cyriac explained.
Thailand is the biggest exporter of shrimp to the US, providing about one fourth of the US imports. It was followed by Vietnam.
The US shrimp imports doubled during 1996 to 2002, and grew by another 14 per cent in the first half of 2003, while the shrimp production remained flat.
In 2001, for the first time, shrimp overtook tuna as the most popular US seafood, and the value of imports has now surged to more than $3.4 billion. Almost 85 per cent of US shrimp market is now contributed by import.
It may be mentioned that a decision earlier this year by the US Commerce Department to slap tariffs of up to 64 per cent on imported catfish embittered Vietnam, which in 2000 negotiated a bilateral trade agreement that was supposed to have provided secure access to the US market.