According to information from the Vietnam Association of Seafood Exporters and Producers (VASEP) on October 31, 2023, certain Vietnamese businesses exporting shrimp products to the U.S. market are under investigation for countervailing duties based on a lawsuit filed by the American Shrimp Processors Association (ASPA). Apart from Vietnam, ASPA has also filed for initiation on anti-dumping investigations for shrimp products from Ecuador, Indonesia, and India.
As per details from the U.S. Department of Commerce (DOC), ASPA filed anti-dumping lawsuits against shrimp from Ecuador and Indonesia, concurrently initiating countervailing duty lawsuits for shrimp from Ecuador, Indonesia, India, and Vietnam.
Nearly a decade ago, the Southern Shrimp Alliance (SSA) and ASPA had submitted a petition requesting a trade remedy investigation into imported shrimp products from Vietnam. After a period of collaboration and working with the investigating agency, Vietnamese businesses, with support from the Vietnam Trade Remedies Authority, demonstrated that the Vietnamese government did not engage in any support or subsidies aimed at negatively affecting the U.S. shrimp market.
The final decision reached was that Vietnamese businesses did not receive subsidies, therefore they are not subject to countervailing duties imposed by the U.S. However, Vietnamese shrimp products still fall under the category subject to U.S. anti-dumping duties, which have been in effect since the end of 2023, lasting approximately 20 years, despite the fact that the duty rate for Vietnamese businesses is 0%. In contrast, Indian businesses face an anti-dumping tariff rate of 3.88%.
Currently, Indian shrimp holds the largest market share in the U.S. at approximately 37%, followed by Ecuadorian shrimp at over 20%, and Vietnamese shrimp at around 8%.
Higher market share corresponds to a greater likelihood of facing higher tariffs. According to ASPA’s proposal, the suggested duty rates for shrimp products from Ecuador and Indonesia are 111% and 37%, respectively.
It is anticipated that the DOC will make a decision to initiate or not initiate investigations into shrimp products from Vietnam and other countries in November 2023.
To address the potential threat of countervailing duty investigations, VASEP plans to hold urgent meetings with Vietnamese shrimp producers and exporters to the U.S. market. Additionally, VASEP intends to engage with reputable law firms specializing in anti-dumping and trade remedies to receive legal assistance and advice regarding the necessary procedures and processes to avoid high duties in the coming period.