Nuntawan Sakuntanaga, deputy director-general of the Foreign Trade Department, said that if the US stopped collecting the bond Thailand would withdraw a World Trade Organisation complaint.

Thailand has already filed a WTO petition over allegations the United States was using unfair trade practices to protect its local shrimp industry.

Thailand has also indicated it would complain about the US demands for a bank guarantee on all Thai shrimp imports.

Thailand claims the charge reduces the competitiveness of its shrimp.

Thai shrimp faces an anti-dumping duty of 5.79-6.82 per cent of a shipment's value, and a bank guarantee must be supplied.

Nuntawan said the US decision was "unpredictable" because many factors had to be considered.

Last week caretaker Commerce Minister Somkid Jatusripitak met US Trade Representative officials and emerged positive the bonds on shrimp would be cancelled.

However, the US Customs Department insisted the anti-dumping charge and bank guarantee were normal practice that protected its domestic market.

The US double charging has hurt Thai exporters' liquidity because they either had to shoulder the higher costs or take sales reductions.

Petchanet Pratruangkrai

The Nation