The fate of Ecuadorian shrimp exports to the United States hangs in the balance as the antidumping investigation progresses, with a decision anticipated in October or November 2024, according to the National Chamber of Aquaculture (CNA) reports to PRIMICIAS.

Unfair Competition Allegations

The United States Shrimp Processors Association (ASPA) has accused Ecuador of engaging in unfair competition through the practice of ‘dumping.’ This occurs when a foreign company sells its products below the normal price in the importing country. ASPA specifically alleges that Ecuador has set shrimp prices below market value, further asserting the presence of alleged subsidies that contribute to the price decline.

Preliminary Findings Raise Concerns

Preliminary documents from the United States Department of Commerce highlight Ecuadorian shrimp prices purportedly being up to 42% below market prices. These findings have raised concerns within the industry, prompting a response from the National Chamber of Aquaculture, which contends that the information presented by the United States shrimp industry is “inaccurate and incomplete.”

CNA Defends Against Accusations

The CNA defends itself, emphasizing that the Department of Commerce will rely on detailed responses to questionnaires submitted by the investigated companies rather than partial and allegedly inaccurate information. The organization maintains that Ecuadorian shrimp producers are committed to fair and transparent practices.

Two Companies Under Investigation

While two Ecuadorian companies exporting shrimp to the United States are currently under investigation for alleged unfair competition, the National Chamber of Aquaculture clarifies that any decision made by the United States will apply to the entire sector.

Ongoing Investigations in Preliminary Phases

Both the antidumping and countervailing duties investigations are currently in their preliminary phases, according to the CNA. The industry awaits a preliminary decision on the subsidy charge in late March, after which further procedures will be undertaken by the United States authorities, including the United States International Trade Commission and the United States Department of Commerce.

Potential Implications of a Ruling Against Ecuador

Should the ruling be unfavorable for Ecuador, the National Chamber of Aquaculture outlines the possibility of additional import duties being imposed on US importers. These tariffs would be designed to compensate for the alleged amounts of ‘dumping’ or subsidies identified during the investigation.

Not the First Challenge for Ecuadorian Shrimp

This is not the first time Ecuadorian shrimp has faced such accusations. The National Chamber of Aquaculture notes that the sector previously triumphed in similar cases, citing victories in the ‘antidumping’ investigation of 2004 and the investigation of countervailing duties in 2013.