WTO ruling to boost shrimp exports

22/07/2008 12:00 - 868 Views

The prospects for Thai frozen shrimp exports to the US have been boosted by the World Trade Organisation appeals body's latest ruling in favour of Thailand, Commerce Minister Mingkwan Saengsuwan said yesterday.

The WTO on Wednesday upheld its earlier rulings against the United States in a case brought by Thailand over shrimp imports.

The trade organisation's appeal court said it had recommended that the US "bring its measure ... into conformity with its obligations."

The ruling means the US will have to stop imposing the "continuous bond requirement", or C-bonds on Thai imports.

Mingkwan said the ruling would also lead to the return of about Bt12 billion placed in C-bonds by Thai exporters.

In 2003, the US started to require the placement of C-bonds amounting to Bt2.55 billion a year as part of an anti-dumping measure.

Mingkwan said the WTO ruling would benefit Thai exporters because the US would have to re-calculate the current import tariffs of 5.29-6.82 per cent.

The Thai shrimp industry has been suffering from the US's unilateral action for the past five years.

Last year, the country exported shrimps worth a combined Bt80 billion, with 52 per cent of total shipments going to the US market. Other major markets include

Japan (17 per cent), the European Union (9 per cent) and Canada (7 per cent).

Mingkwan said Thailand should be able to ship more frozen shrimp to the US following the WTO ruling.

The government and exporters were also working together to open new markets for Thai shrimp such as Peru, Bolivia, Colombia, Venezuela and Chile, Mingkwan said.

 

By The Nation
Published on July 18, 2008

Source: nationmultimedia.com

 
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