Domestic shrimp exports will re-enter the US market beginning this August sans tariffs.

Dubbed a ‘diplomatic success’ by the Ecuadorian government, the US has officially revoked its anti-dumping measure against local shrimp producers.

World Trade Organisation (WTO) arbiters determined that the US formula for calculating anti-dumping tariffs was illegal and contrary to the multilateral commerce system, the Ecuadorian chancellery announced.

The ruling has effectively re-vindicated the Ecuadorian export sector, which had always maintained their innocence in the employment of any prohibited trade practices, said the executive president of the Chamber of National Aquaculture (CNA), Cesar Monge.

Furthermore, Ecuador never violated foreign commerce laws nor did it compete illegally with shrimpers from the southern US, the chamber leader told the Associated Press.

From 2004 to date, the controversy has cost Ecuador USD 2 million in legal fees and more than USD 60 million in tax payments and other requirements to the US, Monge recalled.

Currently, shrimp is ranked third in Ecuadorian exports, behind petroleum and bananas.

Ecuador exported 273 million pounds of shrimp in 2007 worth USD 582 million, official statistics indicate. Of the total, 43 per cent were exported to the US and 16.1 per cent to Spain.

In 2006, shrimp exports generated USD 640 million, of which 50 per cent stemmed from sales to the US market.

Meanwhile, shrimp export sales dropped by some 4 million pounds in December, with respect to November, and nearly 5 million compared to the last month in 2007, Monje indicated.

The chamber leader qualified the current situation as “very serious,” given that losses are estimated at USD 10 million compared to the revenue generated for November 2008.

Related articles:

- Shrimp exports take a dive
- US delays anti-dumping duty refunds
- US eliminates anti-dumping tax on Ecuadorian shrimp

By Analia Murias
editorial@fis.com
www.fis.com