Shrimp lobby bypasses US tax review

 
Last Updated: Saturday 04 July 2015

Lobby works At least 104 shrimp exporters from six countries (Brazil, China, Ecuador, India, Thailand, and Vietnam) reached an agreement with the us shrimp producers to bypass the country's annual tax review. The move came after Thailand, one of the world's largest shrimp exporters, failed to persuade the us to scrap a bond requirement that has impeded its shrimp export.

Under the agreement, exporters will pay sums of money directly to the us South Shrimp Alliance, so that it can lobby us authorities for inspection of antibiotic residues in imported shrimp. The alliance will also lobby us customs for stricter supervision over the imports in order to prevent dumping tax evasion. According to media reports, exporters will pay one or two per cent of total annual export turnover and in return the alliance will withdraw its request for a review to increase tax rates, leaving the anti-dumping tax rates unchanged for these companies. Exporters hope the payment will help them settling disputes with the us.

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