Findings by the WTO go against the US over anti-dumping measures on warm water shrimp from Thailand. Then new trade outlets are opening up for the South East Asian region. It was in 2006 when Thailand took their dispute over measures preventing frozen warm water prawns entering the US to the WTO Disputes Panel. Countries like Brazil, Chile, China, the European communities, India, Japan, Korea, Mexico and Vietnam have supported Thailand and reserved their rights to participate in the Panel proceedings as third parties.
The dispute was all about the use of ‘zeroing’ and the application of the enhanced continuous bond requirement (EBR), by the United States on certain frozen warm water shrimp imported from Thailand. The main point of the issue was the imposition of anti-dumping duties on imports of shrimp from Thailand.
The WTO Disputes panel has upheld Thailand’s claims that the application of the EBR to subject shrimp from Thailand is inconsistent with the Anti-Dumping Agreement. The panel has rejected the US argument that the application of the EBR was justified under GATT 1994. The panel said that the GATT 1994 stands nullified or impaired neefits accruing to Thailand. It also said, “We therefore recommend that the United States bring its measures into conformity with its obligations under the Anti-Dumping Agreement and the GATT 1994.”
