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June 15, 2013

Indonesia

Capitalizing on Advantages

 

Indonesia is eyeing a larger share of the USA shrimp market after a preliminary finding by USA investigators cleared exporters of subsidy allegations and freed the country from paying countervailing duties.

 

In late May 2013, the USA Department of Commerce announced its preliminary findings on foreign shrimp subsidies, saying that Indonesia and Ecuador were not subsidizing their shrimp farmers and that China, India, Malaysia, Thailand and Vietnam were subsidizing their shrimp farmers.  Consequently, Indonesian exporters will be exempt from countervailing duties at least until the end of the investigative period.

 

On June 11, 2013, Slamet Soebjakto, general director for aquaculture at the Indonesian Maritime Affairs and Fisheries Ministry, said, “We are sure that we will be able to boost [our exports to the USA to] 60 percent to dominate the market by the end of this year, with other suppliers probably having to reduce their export quantities due to the subsidy policy.”

 

In addition to the USA market, Slamet said the ministry was optimistic that Indonesia could also dominate the international market, with local production declared to be free from common shrimp diseases, such as early mortality syndrome (EMS).

 

Nearly half of Indonesia’s shrimp exports currently go to the USA.  From January to October 2012, shrimp shipments to the USA totaled $484 million, up 4.8 percent from the same period in 2011.

 

Accounting for 16 percent of the USA’s total frozen shrimp imports, Indonesia is the second-largest shrimp supplier to the USA after Thailand.

 

The USA Trade Commission will announce the final ruling on the subsidy investigation on September 26, 2013.  If the Commission finds that imports from the five countries are materially injuring, or threatening material injury, it will issue countervailing duties on October 3, 2013.

 

Source: The Jakarta Post.  RI Set to Dominate US Shrimp Market After Duties Lifted.  Anggi M. Lubis.  June 12, 2013.

 

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