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Sat, November 18, 2006 : Last updated 20:28 pm (Thai local time)



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Home > Business > US call to drop shrimp case rejected





US call to drop shrimp case rejected

Thailand has insisted that it will continue to pursue a complaint lodged with the World Trade Organisation (WTO) against the United States for employing unfair trade practices against Thai shrimp exporters, despite a US request to cancel the petition.

The complaint relates to a practice called zeroing, under which sales that could reduce or remove margins are not counted.

Chutima Bunyapraphasara, director-general of the Trade Negotiations Department, said yesterday that Thailand was confident of winning the case. Although Washington has offered to review its zeroing calculation methods if the case is withdrawn, she said Thailand would follow the complaint through because the US practice clearly violates WTO regulations.

 The Thai petition accuses the US of implementing dual trade protection measures against Thai shrimp since March this year through a continuous bond and an anti-dumping duty.

If Thailand succeeds in having zeroing removed the dumping duties on Thai shrimp entering the US would probably be heavily reduced or removed.

The WTO is considering setting up a panel with representatives from India, Mexico, Brazil, China, Chile and the European Union to review the case in January next year.

Chutima said an initial decision on the case should be reached by July next year, but if the US appeals it could be prolonged until October.

The Customs Department reported that Thai shrimp exports to the US grew by 15.04 per cent to US$435.2 million (Bt15.9 billion) in the first nine months of this year, despite facing a C-bond and 5.79-to-6.82-per-cent anti-dumping duties.

Meanwhile, to ensure public participation in a review of free-trade agreements, the department intends to set up an advisory committee to communicate ideas.

Chutima said the committee would act as an intermediary between the government and the private sector on FTA topics. It would consist of representatives from private companies, farmers groups, government agencies, academics and non-government organisations.

The department will allow as much public participation as possible in order to ensure transparency and fairness to all involved, said Chutima.

Petchanet Pratruangkrai

The Nation








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