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International trade

India's Shrimp Exporters Face New Threat: US Proposed Tariff Act

Strategic Insights

— 2 min read

India's shrimp exporters, who generated $4.88 billion in revenue last year, are bracing for a potential hit from the proposed US India Shrimp Tariff Act. The industry has already been reeling under a 50% import tax imposed by the US, and executives are warning that additional tariffs could be the final nail in the coffin.

Key Takeaways:

  • India exported 7.16 lakh MT of frozen shrimp during the financial year, accounting for 40.19% of the total export volume and 66.12% of the total earnings in dollar terms.
  • The industry has already been paying a countervailing duty of 5.77% and anti-dumping duty of 2.65% on top of the 50% import tax.
  • The proposed India Shrimp Tariff Act aims to protect Louisiana's shrimp and catfish industries against alleged cheaper imports from India.
  • India is the largest exporter of shrimp to the US, followed by Ecuador, and has established its presence in the US market over more than a decade through value-added products.
  • Executives have expressed concerns that the proposed legislation creates a level-playing field, but is actually aimed at snuffing out the industry.
  • The US Senate Finance Committee hearing last week saw Senator Cassidy secure a commitment from President Donald Trump's deputy undersecretary of the Treasury nominee Jonathan Greenstein to oppose "unfair" trade practices.

Statistics:

  • India exported 17.81 lakh metric tonnes of seafood during 2023-24, valued at Rs 60,523.89 crore (about $7.38 billion).
  • Frozen shrimp earned Rs 40,013.54 crore ($4.88 billion), accounting for 40.19% of the total export volume and 66.12% of the total earnings in dollar terms.
  • The 50% import tax has already taken its toll on the industry, with executives warning that additional tariffs could be the final blow.

Sources:

  • They can't kill what is already dead, said senior executives of India's $4.88 billion shrimp export industry (No source cited)
  • India exported 17.81 lakh metric tonnes of seafood, valued at Rs 60,523.89 crore (about $7.38 billion), during 2023-24. (No source cited)
  • India is the largest exporter of shrimp to the US, followed by Ecuador. (No source cited)
  • The proposed India Shrimp Tariff Act aims to protect Louisiana's shrimp and catfish industries against alleged cheaper imports from India. (Source: US Senate Finance Committee)
  • According to the senators, Indian shrimp was "dumped" on the US market with minimal regulation. (Source: US Senate Finance Committee)
  • Senator Cassidy's common-sense legislation will help put our domestic industry on a more level playing field, and I will work with him to move this hill forward for the benefit of Gulf Coast shrimpers and everyone who enjoys domestic shrimp. (Source: US Senate Finance Committee)
  • During a US Senate Finance Committee hearing last week, Cassidy secured a commitment from President Donald Trump's deputy undersecretary of the Treasury nominee Jonathan Greenstein to support Louisiana shrimp producers and oppose "unfair" trade practices. (Source: US Senate Finance Committee)

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