In the wake of the devastating tsunami that hit several nations bordering the Indian Ocean on December 26, the Government of Thailand has approached the U.S. Government regarding possible measures that this country can take to help those provinces of Thailand most affected by the disaster. The possible measures – detailed in a paper submitted by Thai Embassy officials to a Deputy U.S. Trade Representative – include the lifting of antidumping duty orders currently in effect against products of Thailand, including canned pineapple and shrimp. The list also requests tariff elimination or other favorable treatment for imports of canned and pouched tuna and canned crabmeat from Thailand.
As affected Members may be aware, the antidumping duty order on canned pineapple fruit from Thailand is already scheduled for a “sunset review,” to be initiated in mid-2005. The order on shrimp from Thailand, put in place just a few weeks ago, is already subject to a “changed circumstances” review by the U.S. International Trade Commission in which the Commission will review the possible impact of the tsunami on Thai exports of the product to the United States. Both the “sunset review” and the “changed circumstances” review could result in the revocation of the antidumping orders, although these mechanisms take several months, and perhaps as long as a year plus, to complete.
The request regarding canned and pouched tuna is particularly interesting. As affected Members may be aware, when the Andean Trade Preference Act (ATPA) was extended in 2002, it provided preferential duty-free treatment for imports of pouched (but not canned) tuna imports from ATPA-beneficiary countries. Ecuador has been the biggest gainer from that provision. This has caused Thailand – traditionally one of the largest foreign suppliers of canned tuna to the U.S. – to lose market share in this country. The treatment of canned/pouched tuna from Thailand is the subject of intensive negotiations in the current free trade agreement (FTA) talks with Thailand, and representations imploring favorable treatment for Thai tuna have been presented on behalf of the Association.
The U.S. may be unwilling to give away “something for nothing” by providing preferential treatment for Thai tuna outside the context of the FTA negotiations. Nevertheless, this is a potentially significant opening that the Association should try to take advantage of (as is the request with respect to canned pineapple fruit). With the Association’s approval, we will make the necessary representations in this matter.
We will continue to follow developments closely and keep Members advised.
