India on Tuesday clinched a major victory at the WTO after the trade body billed a US plea on a cash bond for shrimp exports to the country as illegal and in violation of global laws, the Seafood Exporters Association of India (SEAI) has stated.
The bond, a cash guarantee given to the US customs for an amount calculated at 100% of the duty payable on total exports during the previous year, is over and above the anti-dumping duty imposed by the US government.
The US International Trade Commission imposed anti-dumping duties on billions of dollars of shrimp imports from Asia and Latin America in 2004 that said there was a reasonable indication that lower-priced, pond-raised shrimps from Brazil, China, Ecuador, India, Thailand, and Vietnam were hurting the US industry.
The WTO ruling came in response to a complaint by India and Thailand against the US bond. Earlier, the court had ruled on the same issue in favour of Thailand.
SEAI communication also notes that WTO has confirmed the preliminary findings of a dispute settlement panel last October against the practice of zeroing. The ?zeroing? method used by the US artificially inflates import duties on shrimp, sources said.
The US actions have taken a toll on Indian shrimp exports to the US with volumes declining after the imposition of anti-dumping duty and cash bonds. The removal of the barriers would help in reducing duty and help India seafood exporters gain more market share in the US, sources said.