Countervailing duty: A new challenge to shrimp imported into the U.S

News 08:13 29/01/2013 496
(vasep.com.vn) On 28th December 2012, Coalition of Gulf Shrimp Industries (COGSI) filed a petition asking Ministry of Commerce to impose countervailing duty on warm water shrimp imported from seven countries including China, Vietnam, India, Indonesia, Malaysia, Thailand and Ecuador.

Its allegation is that shrimp industry of these countries has been subsidized by the Government through preferential policies. According to statistics by the US Custom, seven above countries supply 85.6 percent of the total shrimp purchased by the U.S in the first ten months of 2012.

Top ten shrimp suppliers for the U.S, Jan – Oct 2011 – 2012, tonnes

Origin

Jan- Oct 2012

Share (%)

Jan - Oct 2011

Variation (%)

Thailand

109 ,012

25.3

149,625

-27.1

Ecuador

69 ,054

16.0

61,617

+12.1

Indonesia

60 ,499

14.1

58,221

+3.9

India

49 ,774

11.6

39,593

+25.7

Vietnam

32 ,125

7.5

36,637

-12.3

China

29 ,392

6.8

33,752

-12.9

Mexico

21 ,513

5.0

22,289

-3.5

Malaysia

18 ,562

4.3

23,203

-20.0

Guyana

7 ,869

1.8

5,265

+49.5

Peru

7 ,190

1.7

7,373

-2.5

Others

25 ,480

5.9

28,208

-9.7

TOTAL

430 ,470

100

465,783

-7.6

The U.S – the second largest consumer of Vietnam shrimp

The U.S took the leading position in importing Vietnam shrimp in decades. However, stronger competition from other suppliers makes the U.S become the second largest of Vietnam shrimp, after Japan.

In 2012, shrimp exports to the market saw decline in comparison with the previous year, however the market is still the second position in consuming shrimp products of Vietnam. The value from exporting shrimp to the country reached US$480 million, taking 20 percent in the total shrimp exports.

The U.S is considered as a target destination for shrimp from Vietnam in 2012 due to Ethoxyquin testing in Japan and slowdown in EU economy. The move of COGSI caused strong pressure on Vietnam shrimp exporters in the first days of the new year.

Imported shrimp currently makes up 80 – 90 percent of the total shrimp supply of the U.S.

During past ten years, farmed shrimp imported into the U.S has faced many protection campaigns by domestic shrimpers. However, shrimp import into the U.S has increased year by year to meet the demand of American consumers.

In Jan – Oct 2012, shrimp landings of the U.S only reached 98.7 million pound (44,890 MT). The volume of farmed shrimp imported into the country in the period touched 948.2 million pound (430,470 MT).

In case the U.S shrimpers are successful in their attempt to get countervailing duty, the importers and consumers in the country are directly affected by higher prices.

As the comments by the chief editor of seafood.com, the challenge for the domestic industry is not to claim their shrimp and farmed shrimp are fungible substitutes for each other, but to recognize they have a unique wild product that can stand on its own.

Vietnam – the leading supplier of large shrimp for the U.S.

In term of value, Vietnam takes the top position in supplying large shrimp HLSO (U/15) for the U.S. In Jan – Oct 2012, the country imported 7.16 million pound (3,254 MT), worth US$53.78 million. These figures are up 9.5 percent in volume and 7.2 percent in value compared to those of the previous year.

U/15 shrimp imports by the U.S, Jan- Oct 2012

thousands of pounds and US$

 

U/15

Volume

Value

Volume

Value

Variation in volume (%)

Variation in value (%)

2012

2012

2011

2011

 

 

Mexico

7,473

45,127

7,571

44,842

-1.3

+0.6

Vietnam

7,168

53,788

6,544

50,163

+9.5

+7.2

India

5,023

25,707

5,288

35,123

-5.0

-26.8

Bangladesh

2,850

21,140

2,635

18,842

+8.1

+12.1

Ecuador

2,169

13,296

1,109

7,326

+95.6

+81.4

Other

7,855

48,037

6,663

44,872

+17.9

+7

Total

32,538

207,095

29,811

201,168

+9.1

+2.9

Thailand supplied the largest volume of peeled and cooked shrimp to the U.S.

Statistics by NMFS showed that Thailand was the largest supplier of peeled and cooked shrimp to the U.S in the first ten months of 2012. The country supplied 92.7 million pound (41,114 MT) of peeled shrimp in the period, valued at US$1.41 billion and 77.05 million pound, worth US$332.2 million.

Cooked shrimp imports by the U.S, Jan- Oct 2012

thousands of pounds and US$

.

Shrimp, Cooked

Volume

Value

Volume

Value

Variation

in volume (%)

Variation

in value (%)

2012

2012

2011

2011

Thailand

77,058

332,247

109,494

487,964

-29.6

-31.9

Vietnam

14,054

64,543

19,506

94,601

-28.0

-31.8

Indonesia

13,028

58,317

12,875

59,245

+1.2

-1.6

China

9,298

33,826

11,102

41,527

-16.3

-18.5

India

3,863

13,813

2,888

10,411

+33.8

+32.7

Other

7,624

28,253

9,555

35,079

-20.2

-19.5

Total

124,926

531,000

165,421

728,828

-24.5

-27.1

 

Peeled shrimp imports by the U.S, Jan- Oct 2012

thousands of pounds and US$

Shrimp, Peeled

Volume

Value

Volume

Value

Variation

in volume (%)

Variation

in value (%)

 

2012

2012

2011

2011

Thailand

92,764

389,041

106,637

457,699

-13.0

-15.0

Indonesia

66,443

279,344

69,473

326,406

-4.4

-14.4

India

44,321

189,117

33,784

179,073

+31.2

+5.6

Ecuador

42,266

139,305

37,759

126,001

+11.9

+10.6

Vietnam

40,139

203,785

41,932

227,760

-4.3

-10.5

Malaysia

20,741

66,860

33,236

102,122

-37.6

-34.5

Guyana

16,979

33,357

11,160

17,466

52.1

+91.0

China

16,212

51,677

20,478

73,289

-20.8

-29.5

Peru

5,909

20,127

5,007

16,657

+18.0

+20.8

Guatemala

1,666

5,586

4,048

15,723

-58.9

-64.5

Other

9,409

36,715

10,352

43,612

-9.1

-15.8

Total

356,849

1,414,913

373,866

1,585,807

-4.6

-10.8

China takes the leading in the U.S breaded shrimp market

Through October 2012, China caught 54.8 percent in volume and 48.4 percent in value in the supply of breaded shrimp for the U.S. According to NMFS, until October 2012, the U.S imported 37.46 million pound (17,008 MT) of breaded shrimp from China, valued at US$99.3 million.

Breaded shrimp imports by the U.S, Jan- Oct 2012

thousands of pounds and US$

Shrimp, Breaded

Volume

Value

Volume

Value

Variation

in volume (%)

Variation

in value (%)

2012

2012

2011

2011

China

37,464

99,332

38,535

98,759

-2.8

+0.6

Thailand

18,820

67,917

25,952

93,781

-27.5

-27.6

Vietnam

5,113

15,762

6,279

19,800

-18.6

-20.4

Indonesia

2,993

9,672

5,529

18,604

-45.9

-48.0

Ecuador

1,901

6,005

1,494

4,942

+27.3

+21.5

Other

1,999

6,390

1,497

4,194

+33.5

+52.4

Total

68,290

205,078

79,286

240,079

-13.9

-14.6

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