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Thai shrimps caught in US trade net
By Malcolm Borthwick
BBC World Asia Business Report editor in Thailand

 
The world's largest exporter of shrimp has enough to worry about at the moment without the threat of US trade sanctions.
Shrimping boat
Another industry has been left high and dry by the tsunami

Until last month, the shrimp hatcheries along Thailand's coastline were producing more than half of the country's shrimps.

But then disaster struck; about 30% of the country's hatcheries were destroyed in the recent tsunami disaster.

The Thai Shrimp Association estimates that about a hundred hatchery workers were killed.

Taweesub Chuayjun, who runs a hatchery in Khao Lak, lost seven of his workers.

Our shrimp industry has been devastated by the tsunami, but we're doing all we can to get it back on its feet
 
Somak Paneetatyasai

"The only reason I survived was because I clinged to a palm tree, after being swept over a hundred yards by the current," he says.

"The waves tore off the roofs of my concrete hatcheries and swept away all of my breeding stock. It will take about a year to repair my hatchery and cost me 20 million Thai baht ($518,000; £259,000).

"So far I've received 20,000 baht ($518) from the Thai government to help me. It's not enough. I've lost everything and I'm not insured."

Lifeline

About 95% of Thailand's shrimps are farmed and hatcheries are the lifeline of the country's shrimp industry, which means the damage to the hatcheries is having a knock-on effect down the whole supply chain.

Shrimp hatchery
Shrimp hatcheries lie empty in Khao Lak

"I'm only using three of my 15 shrimp ponds at the moment. Because the hatcheries have lost their breeding stock, I cannot stock my ponds," says Surachai Sunthorntip who runs a shrimp farm in Phuket, producing shrimp for export.

He points to an area the size of nearly two football pitches, which would usually be full of shrimp, but instead resembles a dusty saltpan.

It's not just the hatcheries themselves which are affected. More than a million people work in Thailand's shrimp industry - in the farms, processing plants and transportation of shrimp - and many of their jobs are either at risk or already wiped out.

Shrimp Alliance

The situation in Thailand is a far cry from Florida where Tampa Bay shrimp fisherman John Williams operates.

We just want a fair deal - we are not subsidised like the Thai and Indian shrimpers
 
John Williams

Williams has been shrimping for 40 years and owns three shrimp boats with his wife Kathleen.

Florida is one of eight US states which form the Southern Shrimp Alliance.

In 2003, the alliance brought a legal case to the United States International Trade Commission (USITC) claiming that Thailand, along with Vietnam, China and India, were dumping cheap shrimp on the US market, which was putting its members out of business.

"Since 2001, our prices are down 60%. In Alabama and Louisiana there are dozens of shrimpers who cannot afford fuel and have had their boats repossessed," Mr Williams said.

"We just want a fair deal; we are not subsidised like the Thai and Indian shrimpers."

US sanctions

Two weeks after the tsunami hit Asia, the Washington DC-based USITC ruled in favour of the Southern Shrimp Alliance.

This is the final step before the US imposes import taxes on Thai shrimpers.

The USITC did, however, say it would review its position on Thailand and India in light of the tsunami.

But John Williams insists the commission should stick to its guns. "We won this case fair and square. If the [commission] decides not to collect the tariffs it will be like shooting us."

He does not blame the Thai shrimp industry, but the companies that import and export the shrimp.

"They are using this as a smoke screen not to pay the fair market price to Thai shrimpers," he says.

'Immeasurable' damage

The Thai shrimp industry is worried that the USITC's review of the ruling may never happen and that once the international spotlight on the tsunami fades, the US will simply push ahead with trade sanctions.

Over half of Thailand's shrimp exports are to the United States.

"Our shrimp industry has been devastated by the tsunami, but we're doing all we can to get it back on its feet. If the US pushes ahead with the tariffs, the damage to Thai shrimpers will be immeasurable," says Somak Paneetatyasai, president of the Thai Shrimp Association.

If it doesn't, John Williams argues, "thousands of American shrimpers will go out of business."

This is likely to become another epic trade dispute to rival the banana and steel wars.

 

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