ASIATODAY.ID, JAKARTA – The American Shrimp Processors Association (ASPA) filed an anti-dumping and anti-subsidy lawsuit against shrimp products from Indonesia.
The President of the Republic of Indonesia, Joko Widodo (Jokowi) has learned about this and ordered the Minister of Maritime Affairs and Fisheries, Sakti Wahyu Trenggono to respond to this.
“Directions from the President must be carried out. “Otherwise, our shrimp industry will be hampered, subject to anti-dumping, subject to import duties,” said Minister Trenggono at the State Palace, Friday, January 5 2024.
ASPA’s lawsuit application was submitted to the US Department of Commerce in October 2023. According to its official website, Friday, January 5 2024, ASPA submitted a request to request anti-dumping import duties on imports of frozen warm water shrimp from Ecuador and Indonesia.
ASPA also asked to countervailing import duties on imported shrimp from Ecuador, India, Indonesia and Vietnam.
ASPA President Trey Pearson said the U.S. shrimp market has been overwhelmed by large quantities of underpriced shrimp imports, resulting in low prices at the docks, a decline in domestic market share, significantly reduced profit margins and high inventory levels.
ASPA noted that imports from these four countries were worth more than $6.6 billion in 2022, accounting for more than 90% of all frozen warm water shrimp imports that year.
“ASPA estimates that the dumping margin in Ecuador will reach 111% and the dumping margin in Indonesia will reach 37%,” explained Trey in his official statement.
Additionally, ASPA documents dozens of government subsidy programs that benefit shrimp farmers and processors in Ecuador, India, Indonesia, and Vietnam, including subsidized loans, tax concessions, grants, export credits, and the provision of land, water, and other inputs.
Shrimp imports from those four countries increased by more than 200 million pounds from 2020 to 2022, taking market share from an already vulnerable domestic industry. Imports also lead to lower sales of shrimp in the US, driving prices down to historic lows in 2023, for both fishermen and processors. As a result, the profit margins of domestic industries have almost disappeared, threatening the future sustainability of industries that are very important for the economy and cultural heritage of the Gulf region.
ASPA trade advisors Elizabeth Drake and Eddy Hayes consider this petition necessary given the ongoing unfair trade practices causing significant market distortions and price depression in the US.
If successful, the antidumping and countervailing duties order would result in tariffs that offset dumping and subsidies by foreign companies and foreign governments.
“This will bring market correction and much-needed relief to the entire domestic shrimp industry,” they said.
Meanwhile, the petition has been submitted to the US Department of Commerce and the US International Trade Commission. The Commerce Department is expected to announce whether it will initiate an investigation on November 15, 2023, and the Commission is expected to vote on whether there are reasonable indications of harm to the domestic industry on December 8, 2023.
If both decisions are approved, full investigations at both agencies would last until fall 2024. (AT Network)
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