U.S. Antidumping Duties on Shrimp Imported from Thailand

2028 Words Mar 16th, 2008 9 Pages
U.S. antidumping duties on shrimp imported from Thailand

Summary:
The case happened because US shrimpers call for end GSP. The largest seafood associations in the US tried to lobby campaign in Washington to cut generalized system of preference (GSP) privileges to Thailand. They want the US congress to look into Thailand’s business practices. They said “Thai shrimp imports have been a serious problem for us and shrimp farmers across the US for years, and we need to bring attention to the issue and the country’s business practices.” However, Thailand is already undertaking action to the WTO against the US for this action.
Mr. Somsak Paneet, president of the Thai Shrimp Association, said that the cancellation of GSP privilege will
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According to WTO, zeroing is a calculation method that ignores negative margin of dumping. To know more, see appendix 1 on how it’s calculated. As a result, it causes an unfair increase of dumping liability of exporter (WTO, n.d.). Therefore, Thailand brought this case to WTO, and this case is very similar to the Ecuador’s case which has been judged before as unfair.

My perspective
From the previous result, I quite agree with the decision made by the panel that imposing tariff calculated by using zeroing method, as a reason of antidumping, is unfair because of the following reasons.
According to Article VI of GATT, during the Uruguay Round, antidumping means charging extra import duty on a product in order to bring its price closer to the fair value or to help domestic industries from injury. Also, you need to calculate the extent of dumping, investigate the impact to importing countries, and look into all economic factors that could affect before you can impose tariff (definition, n.d.).
According to Free Trade Organization, Dan Ikenson, policy analyst, claims “Few trade policies engender more bitterness and international ill will than the U.S. antidumping law. For many years, that law has been the weapon of choice among domestic producers seeking to quell import competition.”(zeroing, April 27, 2004)
According to the Agreement on Technical Barriers to Trade, at the Uruguay Round, states “This agreement will extend and clarify
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