The US Department of Commerce (DOC) has issued its final decisions in the antidumping (AD) and countervailing duty (CVD) investigations involving shrimp exports from Ecuador, Indonesia, India, and Vietnam.
One of Ecuador’s largest shrimp exporters, Songa, received a zero percent dumping rate, while another major exporter, Santa Priscila, was assigned a 0.48 percent rate, which qualifies as de minimis. As a result, Santa Priscila will not be subject to any penalties or required to make cash deposits on its exports.
Ecuador, one of the leading shrimp suppliers to the US market, welcomed the results. José Antonio Camposano, executive president of Cámara Nacional de Acuacultura, which represents Ecuador’s shrimp industry, expressed satisfaction with the outcome. “This confirms our long-held stance that Ecuador does not engage in unfair trade practices,” Camposano said.
For Indonesia, PT Bahari Makmur Sejati was also given a zero percent dumping rate. However, PT First Marine and other Indonesian exporters were assigned a 3.9 percent rate, indicating that some companies had sold shrimp below fair market value.
The DOC’s probe, which began last year, was initiated following complaints from the American Shrimp Processors Association (ASPA), a trade group advocating for wild-caught US shrimp producers. ASPA sought duties on imports of frozen warmwater shrimp from the targeted countries, alleging unfair competition.
In addition to antidumping duties, the DOC investigated whether the exporters benefited from government subsidies, which could result in countervailing duties. While Indonesia avoided CVD penalties, the investigation found that exporters from Ecuador, India, and Vietnam had benefited from subsidies.
Notably, Ecuador’s combined duty rate dropped significantly, from 13.47 percent to 3.78 percent. Meanwhile, India saw a slight increase in its CVD rate, rising from 5.28 percent to 5.77 percent.
According to Max Bouratoglou, an aquaculture analyst at S&P Global, these final rulings will have wide-reaching effects on global shrimp markets. “The reduced duties provide some relief for Ecuador, easing concerns about demand from the US,” Bouratoglou said, adding that the decision will likely result in lower shrimp prices.
The ruling follows a period of sluggish consumer demand and reduced US shrimp imports, driven in part by preemptive buying ahead of the duty imposition and a drop in Chinese imports.
The outcome of the investigations is expected to bring some stability to shrimp suppliers, especially Ecuador, the second-largest shrimp exporter to the US. “With these final rates, the challenges faced by exporters should ease, fostering better trade dynamics moving forward,” Bouratoglou concluded.