US anti-dumping duty hike on Vietnam shrimps to hurt Indian exports
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US anti-dumping duty hike on Vietnam shrimps to hurt Indian exports

ExportPortal 25 Mar, 2018
US anti-dumping duty hike on Vietnam shrimps to hurt Indian exports

According to preliminary reports, the US has raised the duty by 25.39% from 4.8% last year

Shrimpshipments from India to Vietnam for further value addition and re-export to the US is likely to be hit with the US government hiking the anti-dumping duty (ADD) on shrimps coming from VietnamAccording to preliminary reports, the US has raised the duty by 25.39 percent from 4.8 percent last year.

India largely exports block frozen to for reprocessing and forward shipment to its customer countries like China, EU, Japan and the US.

In 2017, India exported about 1,57,440 tonnes of shrimps to Vietnam, valued at Rs 75.41 billion and accounted for 17 percent of India's total exports in terms of volumes.

"Exports of shrimps especially from West Bengal and Odisha will be badly hit as the exporters send consignments to for further value addition and re-exporting", said an exporter.

The Association of Seafood Exporters and Producers (VASEP) believe that the might have been erroneously hiked by the US commerce department in its interim report.

Analysts say that hike in duty would lead to a sharp reduction in shrimp exports from Vietnam to the United States and its trickle-down effect will be felt by Indian shrimp exporters to Vietnam to an extent.

"While the ADD hike on could be detrimental for Indian exports to to an extent, over the medium term--if this high ADD rates on sustain, India could invest in value-added processing capacity, thus moving up the value chain in exports", said Pavethra Ponniah, vice president and sector head- corporate ratings, at rating agency Icra

For Vietnam, EU is the largest customer of shrimp accounting for 22.4 percent of exports (volumes).

EU is followed by Japan at 18.3 percent and China/Hong Kong at 17.7 percent. USA is the fourth largest customer at 17.1 percent.

Ponniah said that a free trade agreement is being negotiated between the EU and Vietnam, which if enacted in 2018 would lead to nil duties on shrimp exports from to EU.

Given that EU is already the largest customer of shrimps from Vietnam, the latter would divert its exports from USA to other countries like EU and high demand countries like China, she added.

This article was originally published on Business Standard

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