Courtesy of SeafoodNews.com:
In late October the American Shrimp Processors Association (ASPA) filed trade petitions seeking antidumping duties on imported frozen warm water shrimp from Ecuador and Indonesia, and countervailing duties on imported shrimp from Ecuador, India, Indonesia and Vietnam.
ASPA said in a news release that the U.S. shrimp market has “been overwhelmed by massive quantities of underpriced shrimp imports, resulting in unsustainably low dockside prices, falling domestic market share, significantly lower profit margins, and historically high inventory levels.” To counteract this, the ASPA filed petitions on behalf of the domestic shrimp harvesting and processing sectors. And if these petitions are successful, the U.S. government will instill tariffs that “offset the dumping and subsidies undertaken by foreign companies and foreign governments.”
Urner Barry and SeafoodNews are continuing to monitor the situation. A timeline of events will be updated to reflect the latest news.
November 21, 2023
A notice announcing an initiation of countervailing duty investigations on frozen warm water shrimp from Ecuador, India, Indonesia and the Socialist Republic of Vietnam was published in the Federal Register by the International Trade Administration on November 21. The periods of investigations are January 1, 2022 through December 21, 2022. The Federal Register notice can be found here.
In addition to the above mentioned notice, the International Trade Administration also published a notice titled Frozen Warm water Shrimp from Ecuador and Indonesia: Initiation of Less-Than-Fair- Value Investigations. That notice states that the period of investigation for Ecuador and Indonesia is October 1, 2022 through September 30, 2023. The Federal Register notice can be found here.
November 16, 2023
The American Shrimp Processors Association released the following statement on November 16:
The American Shrimp Processors Association (ASPA) is pleased to announce that the US Department of Commerce granted ASPA’s request to initiate Antidumping and Countervailing Duty investigations into imported shrimp from Ecuador, India, Indonesia, and Vietnam. ASPA’s petitions generated overwhelming and widespread industry support. Commerce initiated the investigations based on support from both processors and boats demonstrated by ASPA’s own submissions as well as submissions by Ad Hoc Shrimp Trade Action Committee (AHSTAC). In addition to support from its own members accounting for over 85 percent of domestic production, ASPA submitted support forms from more than 850 shrimp boats
from Alabama, Florida, Georgia, Louisiana, Mississippi, and Texas. Together, the vessels included in ASPA’s submissions landed the majority of shrimp harvested in 2022. ASPA also submitted support forms for three non-ASPA processors, and AHSTAC filed its own support forms for nearly 50 boats and six processors. Commerce will now determine whether imported shrimp from the subject countries is being dumped and/or illegally subsidized. ASPA expects Commerce to issue preliminary findings and potential preliminary CVD margins by March 2024 and AD margins by May 2024.
Also, yesterday ASPA participated in the preliminary conference at the International Trade Commission (ITC) to determine whether there is a reasonable indication that the domestic shrimp industry is materially injured by imports from the four countries. ASPA presented six total witnesses testifying on behalf of the shrimp harvesting and processing sectors. The ITC is expected to vote on December
8. Anthony Garcia, who testified on behalf of his Texas company’s shrimp fleet of thirteen vessels and 55 employees, notes that “current ex-vessel prices are the lowest we’ve seen in the over 60 years me and my family have been in the shrimp business. Add to that the increased costs of supplying our vessels and we are barely hanging on.” Arny Gollott III, President of the over 90-year-old shrimp company C.F. Gollott & Son Seafood in Mississippi, lamented that “we have lost more sales in the past 18 months than I recall in our company’s history. We regularly see finished import quotes at prices below our cost of production, and we lost an entire restaurant chain customer last year to imported shrimp solely based on price.”
ASPA’s President Trey Pearson stated that “despite the enormous challenges this industry is facing, we believe that we can compete with anyone under fair market conditions. We are honored and grateful that so many in our industry took the time and effort to voice their support for these petitions. We are thankful to Commerce for initiating the investigations and to the ITC for allowing us to present a case on behalf of the entire shrimp industry.”
November 15, 2023
A virtual preliminary conference was held at 9:30 a.m. regarding frozen warmwater shrimp from Ecuador, India, Indonesia, and Vietnam. Elizabeth J. Drake of Schagrin Associates gave opening remarks in support of the imposition, while Warren Connelly of Trade Pacific gave opening remarks in opposition to the imposition. Also in attendance in support of the imposition were members of the American Shrimp Processors Association, including Trey Pearson, President of ASPA and President of JBS Packing Company. Members of the U.S. Shrimpers Coalition were also in attendance, including Rocky Magwood, Director, U.S. Shrimpers Coalition and President, South Carolina Shrimpers Association; and Ronald Anderson, Director, U.S. Shrimpers Coalition and Vice President, Louisiana Shrimp Association.
In attendance in opposition to the imposition of the antidumping and countervailing duty orders were Industrial Pesquera Santa Priscila, Sociedad Nacional de Galapagos, Shrimp Committee of the Vietnam Association of Seafood Exporters and Producers, and Seafood Exporters Association of India.
October 31, 2023
The International Trade Commission published a notice in the Federal Register on October 31. The notice stated that the Commission “hereby gives notice of the institution of investigations and commencement of preliminary phase antidumping and countervailing duty investigation Nos. 701–TA–699–702 and 731– TA–1659–1660 (Preliminary) pursuant to the Tariff Act of 1930 (‘the Act’) to determine whether there is a reasonable indication that an industry in the United States is materially injured or threatened with material injury, or the establishment of an industry in the United States is materially retarded, by reason of imports of frozen warmwater shrimp from Ecuador and Indonesia provided for in statistical reporting numbers 0306.17.0004, 0306.17.0005, 0306.17.0007, 0306.17.0008, 0306.17.0010, 0306.17.0011, 0306.17.0013, 0306.17.0014, 0306.17.0016, 0306.17.0017, 0306.17.0019, 0306.17.0020, 0306.17.0022, 0306.17.0023, 0306.17.0025, 0306.17.0026, 0306.17.0028, 0306.17.0029, 0306.17.0041, 0306.17.0042, 1605.21.1030, and 1605.29.1010 of the Harmonized Tariff Schedule of the United States, that are alleged to be sold in the United States at less than fair value and alleged to be subsidized by the Governments of Ecuador, India, Indonesia, and Vietnam.”
The Commission must reach a preliminary determination in antidumping and countervailing duty investigations in 45 days, or in this case by December 11, 2023. The Commission’s views must be transmitted to Commerce within five business days thereafter, or by December 18, 2023.
October 25, 2023
On October 25 the American Shrimp Processors Association filed a petition for the imposition of antidumping and countervailing duties on frozen warm water shrimp from Ecuador, India, Indonesia and Vietnam.