Local shrimp exporters urged to reduce heavy reliance on America

The Sai Gon Times Daily
August 6, 2003


America's Southern Shrimp Alliance (SSA) a coalition of eight southern and eastern seaboard states may file legal action against foreign shrimp exporters, including of Vietnam, said Deputy Fisheries Minister Nguyen Thi Hong Minh.

Speaking at a conference of shrimp exporters in HCMC on Saturday, she said the best way to deal with the situation was to "cut shrimp shipments to the U. S. market."

"A lawsuit may be filed in September or October," she said. "Local shrimp exporters should find ways to diversity export markets, instead of relying on a single market like America."

Minh, who is also Vasep chairwoman, told exporters to prevent a lawsuit by any means and that local shrimp exporters should contact SSA to have discussions first.

Vasep secretary general Nguyen Huu Dung said Vasep has earmarked a US$55,000 budget to help the American Seafood Distributors' Association (AS DA) lobby to ward off any lawsuit.

American shrimp farmers can meet only 12% of the U. S. demand. U. S. shrimp imports last year totaled US$3.42 billion, with Vietnam emerging as the second largest exporter behind Thailand.

Figures from the Ministry of Fisheries show 74 seafood processors shipped US$466.8 million worth of frozen shrimp to the U. S. last year, accounting for nearly half the country total.

Sixteen shrimp exporting countries are expected to face the possible lawsuit, but seven of them, including Vietnam, are being targeted.

In a related development, local bass and tra farmers have reached agreement to file legal action against the U.S. Department of Commerce (DOC) and International Trade Commission (ITC) for unfair rulings over the catfish anti dumping case.

Dung of Vasep said the agreement came after they met with Vasep and law firm

White & Case on Friday and that White & Casy would bear all the cost for paperwork to bring the case to the U.S. Court of International Trade.

The ITC determined on July 23 that the U.S. catfish farming industry was materially injured by frozen basa and tra fillets from Vietnam that the DOC had ruled were sold in America at less than fair value.

As a result of tile ITC's affirmative ruling, the DOC will issue an anti dumping duty order on imports of frozen basa and tra fillets from Vietnam.