A recent World Trade Organization ruling may significantly impact the flow of shrimp into the U.S. market, but don’t expect that impact to come anytime soon.
In mid-July, a WTO panel ruled that the United States’ use of “zeroing” to calculate antidumping tariffs on shrimp from Vietnam is illegal. Zeroing is a controversial methodology whereby importedgoods that cost more than they do in their home market are ignored when calculating tariffs.
Vietnam, which filed its complaint in February 2010, is just the latest country to win a zeroing-related case with the WTO. In January, the U.S. Department of Commerce (USDC) said it would change its methodology. But in March, the U.S. International Trade Commission voted to continue tariffs on shrimp from Vietnam, Thailand, China, India and Brazil, a clear sign that it will take months, if not years, for the U.S. government to come in line with WTO rules.
Last month’s ruling came less than two weeks after the Southern Shrimp Alliance asked the U.S. Supreme Court to take on a case challenging the USDC’s decision to halt the use of zeroing. The eight-state group of shrimp fishermen and processors filed an antidumping petition that led to tariffs on shrimp in 2005.
Meanwhile, U.S. shrimp imports remain on pace to top last year’s total of 1.23 billion pounds. Through the first five months of 2011 they were up 3.3 percent, to 413.2 million pounds, according to NOAA Fisheries. Through April, they were up just 2.4 percent, to 331 million pounds.
Among the top 10 suppliers to the U.S. market, only shrimp imports from three countries were down from last year through May — Thailand, China and Mexico. Shrimp imports from Thailand — by far the United States’ No. 1 shrimp supplier — were down 4.4 percent through May, to 135.9 million pounds. However, through May, shrimp imports from the No. 2 and No. 3 suppliers — Indonesia and Ecuador — were up 22.8 percent and 1.8 percent, respectively, to 65.1 million pounds and 61.6 million pounds.
The increase in shrimp imports is not resulting in cheaper product, however. Shrimp prices held firm through mid-July, as shell-on, head-off Asian-raised Pacific whites commanded up to USD 4.50 for 26-30s, USD 4 for 31-35s, USD 3.80 for 36-40s and USD 3.70 for 41-50s.
