'Changed Circumstances' Review Could Lead to Revocation of Antidumping
                   Duties on Indian Shrimp Imports into U.S.

     WASHINGTON, April 25 /PRNewswire/ -- The U.S. International Trade
Commission (ITC) announced today that it will initiate a formal investigation
of the damage caused by the tsunami to India's shrimp industry.  The ITC's
self-initiated 120-day "changed circumstances" review could revoke the
antidumping duties that the U.S. Department of Commerce (DOC) imposed -- and
the ITC approved -- on imported frozen shrimp from India earlier this year.
    "We commend the ITC for launching a formal investigation that could lead
to the revocation of the dumping duties imposed on Indian shrimp exports to
the U.S.," said A. J. Tharakan, National President of the Seafood Exporters
Association of India (SEAI).  "It is a sad fact that it will take years to
recover from the unimaginable human and physical destruction to our industry
caused by the terrible events of December 26.  We are not seeking aid from,
but rather trade with, the United States.  Revocation of these duties will
greatly assist India in tsunami recovery efforts while posing no threat to the
U.S. shrimp industry."
    The ITC voted on January 6, 2005 to approve the dumping duties that were
formally imposed on Indian shrimp imports beginning on February 1, 2005.
Those taxes currently range from 4.94% to 15.6%.  The ITC also approved
dumping duties on shrimp imports from Brazil, China, Ecuador, Thailand and
Vietnam.  However, on the day of the vote, ITC Commissioners took the
unprecedented step of announcing that they would consider launching a formal
"changed circumstances" review to determine whether the damage to India and
Thailand caused by the tsunami has made shrimp exports from these countries no
longer a threat to the domestic shrimp industry.  Following a 30-day public
comment period, the ITC voted five-to-one to formally launch the review for
both India and Thailand.
    "Once underway, a changed circumstances review must be completed within
120 days, during which time the ITC will issue extensive questionnaires,
receive legal briefs, hold a public hearing, and conduct independent
investigations, all of which will mostly concentrate on the tsunami's damage
to India's shrimp industry.  Terminating the dumping duties on India would
require a majority of ITC Commissioners agreeing that revocation would not
likely to lead to injury to the domestic shrimp industry," said Kenneth J.
Pierce of Willkie Farr & Gallagher, counsel to SEAI.
    "Fifty-five percent of Indian shrimp is wild-caught, 45% comes from
aquaculture, and both sectors have been devastated by the tsunami," continued
Tharakan. "Over 88,000 fishing boats were destroyed -- and their main catch
was shrimp.  Our country's shrimp aquaculture production raises black tiger
shrimp, for which broodstock must be caught in the ocean with vessels because
India restricts broodstock imports to avoid species contamination. This means
that the severe damage to our fishing fleet amounts to a critical blow for
both wild-caught and aquaculture production."
    In January and February 2005 (the latest available statistics), U.S.
shrimp imports from India dropped 57% compared to the same period in 2004.
    "Every aspect of the industry has been affected.  Based on preliminary
information, the tsunami damaged the coastal sea beds where shrimp live and
breed, reduced the fishing fleet in the affected states by one-third, and
severely damaged 10% to 25% of the hatcheries, over 14,000 acres of shrimp
farms, and critical infrastructure in the heart of our country's shrimp
producing regions," said Tharakan.
    The impact of the tsunami was focused on three coastal states in India --
Andhra Pradesh, Tamil Nadu and Kerala -- that together account for 75% of
India's total shrimp exports, and for 85% of the shrimp exported to the U.S.
Prior to the tsunami, India's shrimp exports to the U.S. had already begun to
decline -- from 9.2% of market share in 2002 to 7.8% in the first half of
2004.
    Nearly ninety percent of the shrimp consumed in the U.S. must come from
imports.  The U.S. shrimp industry in late 2003 filed a $2.4 billion dumping
suit alleging its overseas competitors were dumping product at margins ranging
from 30% to over 200%.  Eventually the duties imposed ranged from 0 percent to
little over 10 percent except for China, where they were higher.  The six
countries targeted in the suit, including India, made up 75% of those imports.

    The Seafood Exporters Association of India represents nearly all seafood
processors and exporters from India and works cohesively with all concerned
within and outside the industry for the development and promotion of the
seafood industry in India. Headquartered in Cochin, SEAI has eight regional
offices across India.

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