Brasília - The Brazilian Ministry of Foreign Relations informed that it is studying how to appeal to the World Trade Organization (WTO) against the preliminary decision by the United States Commerce Department to levy a surcharge of up to 67% on shrimp imported from Brazil.
Yesterday (29), the United States Commerce Department, which is responsible for verifying the existence of dumping practices harmful to American industry, recommended that the tariffs be applied. The recommendation is a preliminary one, but it was published in the Federal Register of the United States, and the tariff is slated to take effect on July 30.
According to the Ministry, "the government regrets the decision, as it regrets all measures that limit the access of Brazilian products to international markets." The Ministry of Foreign Relations informed that the Brazilian shrimp industry presents a high standard of quality and competitiveness due to favorable natural circumstances, modern production techniques, and lower relative capital costs.
The Special Secretariat of Aquiculture and Fishing released a note underscoring the government's concern over the American decision in light of the importance of shrimp production to Brazil and the importance of the United States to the Brazilian trade balance. The Secretariat informed that it will meet with representatives of the Brazilian Shrimp Breeders' Association, in the city of Recife, to formulate strategies of access to alternative markets, in case the 67% import surcharge is upheld in the final recommendation expected in December of this year.
The Brazilian Shrimp Breeders' Association has five days to appeal the decision, according to the Special Secretariat. Brazilian shrimp production is basically concentrated in the Northeast, a region of Brazil in which the activity has an important social impact, in providing jobs and income to the population, and 37% of Brazilian exports are destined for the United States. Last year Brazil exported 21.7 tons of shrimp to the US, for which it earned US$ 96 million, according to the Special Secretariat of Aquiculture and Fishing.
Since 2003 American producers have been accusing Brazil of selling canned and frozen shrimp for less than it costs to produce, which constitutes the practice of dumping. Besides Brazil, import surcharges have also been imposed on Ecuador, India, and Thailand. Three weeks ago the United States also decided to place tariffs on shrimp imports from China and Vietnam. The six countries whose sales are being taxed supply 75% of the shrimp consumed in the United States.
Agência Brasil
Translator: David Silberstein
07/30/2004
