India sending delegation to U.S. next week as concerns rise over shrimp countervailing duty threat

 The proposed move will be ‘a big blow' to the seafood industry, which is already passing through a ‘tough phase' as marine exports have registered a decline of 6.91 per cent in quantity and 16.60 per cent in dollar earnings in April-September 2012-13, Norbert Karikkassery, President of Seafood Exporters Association, Kerala, said here.

The recession in European and US markets, main markets of India, has hit the industry. Japan, another key market, has come out with some technical trade barriers and have become more stringent, he said.

The ‘Coalition of Gulf Shrimp Industries' of US has also filed a petition before International Trade Administration, United States Department of Commerce and United States International Trade Commission, demanding imposition of countervailing duties on some frozen warm water shrimps from seven countries, including China, India and Vietnam, he said.

The recession in European and US markets, main markets of India, has hit the industry. Japan, another key market, has come out with some technical trade barriers and have become more stringent, he said.

The ‘Coalition of Gulf Shrimp Industries' of US has also filed a petition before International Trade Administration, United States Department of Commerce and United States International Trade Commission, demanding imposition of countervailing duties on some frozen warm water shrimps from seven countries, including China, India and Vietnam, he said.

The petition levels several charges on countervailable subsidies provided in India on the manufacture, production and export of certain frozen warm water shrimp, he said.

DOC's final decision will come on February 11. “The Government is aware of the problem. A delegation will go to US to look into the legal aspects. We will have to fight it out. This is a serious matter and the industry will be affected,” he said.

The petition identifies certain subsidy programmes as countervailable to the shrimp industry in India and alleges that the Indian government was aggressively promoting its shrimp industry through provision of generous government subsidies and has called for imposing duties to offset the benefit conferred by the subsidies.

It also asks US Commerce department to include subsidies to raw shrimp producers in India in its investigation. All shipping lines from Indian coasts have unilaterally announced a $1,500 increase in freezer container freight rates irrespective of container size and port of destination.

Lack of effective legislation for fixing freight rates to specific destinations have contributed to the unhealthy practise of bargaining for freight rates by the shippers.

Seafood shippers exporting low value seafood to East Asia and Middle East destinations would face difficulties as they would be unable to compete with competitors not subject to the unilateral increase. Many exporters are now resorting to transshipment through foreign ports to overcome high freight.

In Kerala, labour is becoming a problem in peeling units following which people from other states were being brought to work in peeling sheds, he said.