India has decided to approach the World Trade Organisation's dispute settlement body against the United States for imposing an additional security bond on Indian exporters of marine products like shrimps.
Senior government officials told Business Standard that India would, in the next two weeks, approach the dispute settlement body. India will join Thailand which has already taken the US to the WTO dispute resolution body on the issue.
"We had informed the US about the intention to move the WTO and asked them to take remedial measures. We have not got a positive response so we are moving ahead," an official said.
Officials said the requirement for the bond over and above the anti-dumping duty being imposed on Indian shrimps was an unfair trade practice causing hardship to the domestic industry. The bond was introduced through a US regulation of November 2004.
Indian exporters had even filed an appeal before the US Court of International Trade, New York against this bond requirement as it, in effect, doubles anti-dumping duty.
Under the provision, Indian exporters have to make full cash deposits for anti-dumping duty and also execute security bonds covering one year's estimated anti-dumping duty liability from here.
The US department of commerce had imposed anti-dumping duty on shrimps from India at the rate of 10.17 per cent in August 2004. India called for a review of the duty following the tsunami.
A team of experts from the US visited India to assess the situation but the US department confirmed anti-dumping duty at the rate of 10.17 per cent in November 2005.
The imposition of anti-dumping duty had affected Indian exports to the US. India's total marine products export during the last fiscal was worth $1.5 billion, of which shrimp comprised around 70 per cent.
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