Duties may buoy local shrimpers

The U.S. government may impose duties on foreign shrimp exporters who are dumping low-cost shrimp on the domestic market at artificially low prices, U.S. Commerce officials announced Thursday in Myrtle Beach.

The duties, which would not be imposed until a final decision is reached sometime next year, could relieve the damaging effects that low shrimp prices have had on the local shrimp industry, said Jim Jochum, assistant secretary for import administration for the U.S. Department of Commerce.

The Commerce Department has found evidence that Brazil, Ecuador, India and Thailand are engaging in shrimp dumping. The United States probably will assess duties on shrimp from those countries.

Proposed tariffs were announced against China and Vietnam three weeks ago. Those six nations supply about 75 percent of the shrimp consumed domestically.

Brazilian exporters would face the largest tariffs, ranging up to 68 percent. The government proposed margins of between 4 percent and 27 percent for Indian exporters; between 6 percent and 10 percent for Thai exporters and between 6 percent and 9 percent for Ecuadorian businesses.

Dumping between 2000 and 2002 cut the value of U.S. shrimp by more than $550 million, or about half of the industry, according to statistics from the Southern Shrimp Alliance, an eight-state group that includes S.C. shrimpers. Foreign shrimp exports to the United States increased during the same period. Between 2001 and 2003, Brazilian shrimp imports rose 120 percent, according to Commerce Department statistics.

Coupled with rising diesel gasoline costs, falling shrimp prices put a squeeze on local shrimpers.

"If they don't do something, it will put the local shrimpers out of business eventually," said Timmy Platt of Eugene Platt's Seafood in North Myrtle Beach.

The announcement is welcome news to the local shrimp industry, according to Steve Jones, president of the Georgetown County Chamber of Commerce.

He said it shows how international economic forces can hurt the local economy. Competition with foreign steel producers was a key reason for the failure of Georgetown Steel, recently bought and reopened by the International Steel Group.

"These types of issues have an impact right here in our state and in our county," Jones said.

Possible shrimp tariffs announced three weeks ago against China and Vietnam had an almost immediate effect on the cost of local shrimp.

"We're already seeing a slight increase of about 10 cents or 15 cents a pound," Platt said. "I think you'll see another price increase soon."

Foreign shrimpers can appeal the preliminary decision. A final decision by the Commerce Department is expected by Dec. 17. After that, the tariffs must be approved by the International Trade Commission.

Until the final ruling, foreign shrimpers must post a bond that would be returned if duties are not imposed.

The federal government began investigating shrimp dumping last year after the American industry complained.

Officials said they found evidence of "price discrimination" after comparing the costs of exported shrimp in countries such as Japan, Spain and Canada, which also import shrimp from Asia and South America. Jochum said evidence suggests some foreign shrimpers are artificially lowering their prices to undercut U.S. shrimpers.

"[U.S. shrimpers] have argued for many years that other shrimpers were exploiting the openness of this market," he said. "What they've asked us to do, essentially, is level the playing field."

Thursday night, Jochum addressed the annual meeting of the Georgetown County Chamber of Commerce. He said he also planned to meet "with shrimpers this afternoon to see firsthand what they're up against."

How tariffs would work

Duties or fines would be imposed on countries - such as Brazil, Ecuador, India and Thailand - that have shown evidence of shrimp dumping in the United States. Those countries, plus China and Vietnam, supply about 75 percent of domestic shrimp. Tariffs against the latter two countries were proposed three weeks ago.

Selling shrimp below cost to the United States.

Shrimp dumping by foreign countries between 2000 and 2002 cut the value of U.S. shrimp by more than $550 million, or about half of the industry.

The cost of shrimp likely will increase. One local supplier said the price has gone up by about 10 cents to 15 cents a pound since tariffs were proposed against China and Vietnam.

"If they don't do something, it will put the local shrimpers out of business eventually," said Timmy Platt of Eugene Platt's Seafood in North Myrtle Beach.