In a significant move to address what they perceive as unfair trade practices, the American Shrimp Processors Association (ASPA) has filed trade petitions aimed at imposing anti-dumping duties on imported frozen warm water shrimp from Ecuador and Indonesia. Additionally, the ASPA seeks to impose countervailing duties on imported shrimp from Ecuador, India, Indonesia, and Vietnam. This action comes in response to the influx of imported shrimp that has been flooding the U.S. market, resulting in distressingly low prices, reduced domestic market share, diminished profit margins, and record-high inventory levels.
The total value of imports from these four countries amounted to a staggering $6.6 billion in 2022, comprising over 90 percent of all imported frozen warm-water shrimp for the year. American Shrimp Processors Association alleges that Ecuador and Indonesia have been engaging in dumping practices, with dumping margins reaching as high as 111 percent for Ecuador and 37 percent for Indonesia. Furthermore, ASPA has documented numerous government subsidy programs supporting shrimp farmers and processors in Ecuador, India, Indonesia, and Vietnam, which include subsidized loans, tax concessions, grants, export credits, and the provision of land, water, and other essential resources.
ASPA filed these petitions on behalf of the domestic shrimp harvesting and processing sectors, receiving remarkable support from hundreds of shrimp boats that account for the majority of domestic warm water shrimp landings, as well as processors representing more than 85 percent of domestic shrimp processing.
Mr. Trey Pearson, President of ASPA, expressed his pride in filing these cases, emphasizing the immense support from the shrimp industry. He stated, “The overwhelming outpouring of support from the entire shrimp industry demonstrates how important trade relief is to everyone. Our petitions include nearly 800 shrimp harvesters representing over half of all domestic landings. ASPA is especially thankful to the many individuals and organizations whose hard work and commitment allowed ASPA to file these cases with the full support of the entire shrimp industry.”
The influx of shrimp imports from these four countries has exceeded 200 million pounds between 2020 and 2022, further eroding the market share of an already vulnerable domestic industry. These imports have undercut domestic shrimp prices, leading to historically low price levels in 2023, which have severely impacted both fishermen and processors. As a result, the domestic industry’s profit margin has nearly vanished, posing a threat to the sustainability of an industry that holds immense importance for the Gulf region’s economy and cultural heritage.
American Shrimp Processors Association trade counsel, Ms. Elizabeth Drake and Mr. Eddy Hayes, issued a statement in connection with the petitions, emphasizing the necessity of these actions to rectify market distortions and price depression in the United States. They explained that if successful, the imposition of anti-dumping and countervailing duties would counteract the effects of dumping and subsidies by foreign companies and governments, providing much-needed relief to the entire domestic shrimp industry.
The petitions have been filed with both the U.S. Department of Commerce and the U.S. International Trade Commission. It is expected that Commerce will announce whether it will initiate investigations by November 15, and the Commission will vote on whether there is reasonable evidence of injury to the domestic industry by December 8. If both determinations are affirmative, comprehensive investigations at both agencies are anticipated to continue into the fall of 2024.
