Ecuadorian shrimp exporters may soon face higher tariffs when entering the United States if a preliminary ruling by the U.S. Department of Commerce (DOC) is ratified. The DOC has communicated the results of its preliminary determination for antidumping duties (AD), indicating tariff percentages ranging from 1.58% to 10.58%, according to the Corporation of Exporting Guilds (Cordex).

Investigation into Alleged Unfair Trade Practices

This development follows a request made in October 2023 by a group of U.S. shrimp processors for an investigation into alleged dumping and subsidies on imported shrimp from Ecuador. This marks the third time Ecuador has been investigated for such practices, despite previously proving its innocence in earlier investigations.

The preliminary determination has already had financial implications for Ecuadorian shrimp exporters. On May 30, the union released a statement explaining that the results were published in the Official Registry, triggering immediate cash deposit requirements. These deposits, which come in addition to the preliminary tariffs, must be paid by companies to ensure their products can enter the U.S. market.

Awaiting Final Determination

The final determination for both countervailing and antidumping duties is anticipated on October 15, 2024. José Antonio Camposano, Executive President of the National Chamber of Aquaculture, emphasized Ecuador’s stance on the matter. “Our position has always been the same, Ecuador does not practice unfair competition of any kind and that is why on previous occasions the United States Court of International Trade has agreed with us,” he stated. Camposano noted that while Ecuador has avoided definitive tariffs in past rulings, the preliminary tariffs are intended to “supposedly level the playing field.”