Victory for shrimp exporters
BANGKOK POST AND AP Friday July 18, 2008
Thailand has welcomed a World Trade Organization (WTO) ruling upholding a decision which found
against United States anti-dumping duties imposed on shrimp exports to the US.
US taxes imposed on shrimp imports from Thailand and India break international trade rules, the
WTO ruled on Wednesday, rejecting a US appeal.
The global commerce referee upheld a decision it issued in February.
The US imposes anti-dumping taxes when it believes its markets are being flooded with below-cost
Washington insists it calculates the taxes fairly, but the WTO has consistently ruled that the US
excessively taxes foreign goods it suspects are being dumped.
Deputy Prime Minister and Commerce Minister Mingkwan Sangsuwan welcomed the WTO's
decision, saying the ruling would help frozen shrimp exports to the US, hit by the anti-dumping tax
Thailand and the US would now negotiate over import tariffs, including the anti-dumping duty, on
Thai frozen shrimp, which stand at 5.29-6.82%.
Thailand will also ask the US to return a guarantee fund, called the Continuous Bond (C-Bond), worth
more than 12 billion baht which Thai exporters paid to get access to the US market.
Shrimp exporters who want to export to the US are required to pledge the guarantee, as part of US
Mr Mingkwan said the Thai shrimp industry would now regain strength. Half the country's total
exports, valued at 80 billion baht a year, goes to the US market, followed by Japan (17%), European
countries (9%) and Canada (7%).
Answer the following questions in the answer sheet provided.
1. What’s the problem between Thai and U.S. shrimp trade?
2. What is the U.S. government intervention and what is their objective?
3. If the cost of producing the frozen shrimp is the same in Thailand but our currency
devalue by 25%, will the U.S. anti dumping tax still affecting us?
4. What are the requirements for Thai shrimp exporters to get access to the U.S.
5. Why do Thai shrimp exporter regain strength?