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 (%)
U/15	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 (%)
. Shrimp, Cooked	2012	2012	2011	2011	Variation in volume (%)	Variation in value (%)
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 (%)
Shrimp, Peeled	2012	2012	2011	2011	Variation in volume (%)	Variation in value (%)
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 (%)
Shrimp, Breaded	2012	2012	2011	2011	Variation in volume (%)	Variation in value (%)
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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Countervailing duty: A new challenge to shrimp imported into the U.S

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