US agrees to zero anti-dumping tariff
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Thai shrimp exports look set to become more competitive in the United States, after the US agreed to cut its anti-dumping tariff to zero percent this year, the Foreign Trade Department has announced.
It’s the first time in eight years that the tariff has been cut.
Thai shrimp exports have been hurt by the high anti-dumping duties on Thai shrimp in recent years.
Bangjongjit Angsusingh, deputy director-general to the Foreign Trade Department, said that Thai frozen shrimp exports to the US faced a more positive future, following Thailand's efforts to provide clear documentation against the US-imposed anti-dumping duties (AD) on Thai shrimp.
Thai shrimp exports have struggled with high duties since 2005, hampering competitiveness and creating additional financial burden for Thai exporters.
The department is advising Thai shrimp exporters to urgently request from the US, a return of guarantee payments on anti-dumping duties for Thai shrimp exports, between February 1, 2011 and January 31, 2012.
This would help increase liquidity for exporters, the department said.
However, Bangjongjit warned that Thai exporters should be wary of the US tariff revision as US domestic enterprises could file every year to have the government’s revisions overturned.
Meanwhile, the US government is also investigating 13 cases of exported Thai shrimp, which it alleges were subsidised.
If the findings of the investigation rule that Thailand was at fault, the US is likely to impose countervailing duties (CVD) on Thai shrimp exports. Thailand has already sent clear documentation to the Office of the US Trade Representative, protesting against CVDs.
The United States is expected to announce the results of its investigation soon.
Since the introduction of anti-dumping duties in 2005, large exporters have been subjected to tariffs from 5.29-6.82 per cent.
Shipments to the US accounted for 33.66 per cent of Thailand’s total export volume, which has declined by 34.10 per cent year on year, in terms of volume, and 32.83 per cent in value compared with the same period last year.
