india wants to hold consultations with the us under the World Trade Organization's (wto) Dispute Settlement Mechanism in connection with anti-dumping duties imposed by the us Department of Commerce (usdoc) on shrimp imports . I t informed the wto of its intention on January 5, 2005. Consultations and negotiations are the first step of the mechanism and the countries get 60 days to settle the issue. In case they can't arrive at a solution, they can seek the appointment of a dispute settlement panel.
The problem started in December 2004 when us International Trade Commission (itc) found that imports of certain non-canned warm water shrimp and prawns from six countries--Brazil, China, Ecuador, India, Thailand, and Vietnam--had 'materially' injured an us industry. This led to the usdoc imposing an anti-dumping duty on shrimp imports from these six countries. An average anti-dumping duty of 9.45 per cent was imposed on shrimp imports from India. However, citing concerns about the possible impact of the recent tsunami disaster on the shrimp industries of Thailand and India, the itc subsequently announced that it will collect information on whether the situation warranted a "changed circumstances review". But both India and Thailand have approached the wto and questioned the us way of determining the margin of dumping.
Thailand had filed its request for consultation at wto on December 14, 2004. A wto communication says India, too, has joined Thailand in its request. "That India has a substantial trade interest in the matter is evidenced also by the fact that India has significant exports of the relevant shrimp to the us. India's exports to the us in the year 2003 were us $400 million," it says. Brazil, Ecuador, China, Japan and eu members have joined the two countries in seeking negotiations on the issue.