Summary:
The case happened because US shrimpers call for end GSP. The largest seafood associations in the US tried to lobby campaign in Washington to cut generalized system of preference (GSP) privileges to Thailand. They want the US congress to look into Thailand’s business practices. They said “Thai shrimp imports have been a serious problem for us and shrimp farmers across the US for years, and we need to bring attention to the issue and the country’s business practices.” However, Thailand is already undertaking action to the WTO against the US for this action.
Mr. Somsak Paneet, president of the Thai Shrimp Association, said that the cancellation of GSP privilege will affect not only on shrimp export but also other industries such as garments and jewelry. Unfortunately, it becomes more complicate since the United States Trade Representative (USTR) put Thailand to its Priority Watch Lists.
Moreover, Thai shrimp exporters also ask the Commerce Ministry to file complaints against the U.S. at the World Trade Organization. This is because Thai shrimp exporters have to face with the imposition of “zeroing” and the over “continuous-bond” payments, imposed by the U.S. government as a reason of antidumping policy. Although the complaints about the U.S. moves have been made before, the progress is very slow, due to the complex of the problems.
For zeroing practice, Mr. Poj Aramwattanont, Thai Frozen Foods Association president, claims that zeroing and continuous-bond payment are unfair. Also, he shows confidence that Thailand will win the case because this type of cases has been judged as unfair by the WTO before.
One of the cases that has been judged as unfair by the WTO is Ecuador case. The panel found that the duties that the U.S. imposed on imported shrimps by Ecuador, as a reason of dumping the price in the U.S. market, is violated the international trade rule. This is because Washington’s use of