August 13, 2013 — U.S. farmed shrimp buyers have a lot to be nervous about these days. Prices are higher due to the supply crunch in the wake of Early Mortality Syndrome hitting Thailand and Mexico. In addition, the International Trade Commission is holding its last public hearing today on the countervailing duties (CVD) that could get levied on seven countries that export shrimp to the U.S. market.
Earlier this year the Coalition of Gulf Shrimp Industries (COGSI) filed its CVD petition with the U.S. government, alleging imports from China, Ecuador, India, Indonesia, Malaysia, Thailand and Vietnam are subsidized and domestic shrimp is at a disadvantage in the market.
There are several problems with the CVD case (and the antidumping case prior to that). First of all, the monies in these cases are never used to alleviate the original problem alleged when the case is filed. Did money from the shrimp antidumping case help the domestic shrimp industry? I have yet to see any proof that this occurred and doubt any further “relief” will be had if this CVD case is won. Will monies from the CVD case go to alleviating the price disparity that the domestic industry insists is hampering its shrimp sales?
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