The shrimp industry in Ecuador faces a significant challenge as the United States plans to impose tariffs on shrimp exporting companies as part of an antidumping investigation. Antonio Camposano, the president of the National Chamber of Aquaculture (CNA), expressed concerns regarding the potential consequences of these tariffs on the sector’s exports.

Tariff Imposition and its Implications

Camposano highlights that the proposed tariff would require companies to pay a deposit as a guarantee to continue accessing the US market. This measure, initiated by the United States Department of Commerce, stems from the determination that “compensable subsidies are being granted” to shrimp in Ecuador, as announced on April 4, 2024. However, it’s important to note that this determination is preliminary and subject to change as the investigation progresses.

According to the preliminary investigation, specific shrimp farms in Ecuador, such as Santa Priscila and Songa, were found to have received subsidies. Santa Priscila faced a subsidy of 13.4%, while Songa received 1.69%. The proposed tariff rates for these companies would be equivalent to the subsidy values. For other shrimp farms, a tariff rate of 7.55% would apply, calculated as the weighted average of the subsidies received by Santa Priscila and Songa.

Challenges and Requests for Review

Camposano emphasizes that both the shrimp sector and the Ecuadorian government have raised concerns about the accuracy of the tariff calculations, particularly regarding Santa Priscila. As the third-largest company in Ecuador by sales volume, Santa Priscila plays a significant role in the country’s economy and the global shrimp market. Therefore, both the private sector and the government have requested a review of the measure, hoping to rectify any errors that could negatively impact the economy.

Ecuador holds a prominent position in the global shrimp industry, being the main producer and exporter of shrimp worldwide. With the United States as its primary market, any developments in trade relations between the two countries have far-reaching implications for the Ecuadorian economy.

Awaiting Final Decision

The United States Department of Commerce is expected to issue a final decision on the Ecuadorian shrimp case by August 5, 2024. Until then, stakeholders in both Ecuador and the United States eagerly await the outcome of this investigation, which could significantly impact the future of shrimp exports from Ecuador to the United States.