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September 3, 2013


Subsidy Duties to Cost $152 Million


Malaysia stands to lose as much as $152 million if the USA subsidy duties become law.


In 2012, Malaysia produced 65,000 metric tons of farmed shrimp, exporting 27,468 tons of it to the United States.


Syed Omar Syed Jaafar, President of the Malaysia Shrimp Industry Association, said that the duties were imposed under the belief that Malaysian producers were receiving subsidies as well as exporting more shrimp than the country actually produces.


“The local consumption of shrimps in Malaysia is between 36,000 tons and 45,000 tons per year.  Combined with the exports to the United States, Europe and Asia-Pacific market, the figure would be more than the total volume of shrimps we produce per year.  This is the basis for the belief that we are passing off shrimp of non-Malaysian origin into the USA market. The USA authorities also believe that Malaysian shrimp producers were heavily subsidized, which explains the competitive pricing of our shrimps in the international market”, he said.


Even though Jaafar does not agree with the International Trade Commission’s decision, he is all for action being taken against countries involved in transshipments and illegal imports.  “Action should be taken against the companies which are involved in transshipment activities.  The subsidy duties would drive away new investments, and we would not be able to compete with other neighboring countries,” Jaafar pointed out.


The new subsidy duties are to become effective on October 1, 2013, unless the ITC determines that there was no harm to the USA industry.


Source: FIS United States.  USD 152 Million Estimated to Be Lost Due to Us Shrimp Duty.  Gabriela Raffaele  (  September 3, 2013.


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