Overview of India's seafood export and its major trade partners in terms of price and quantity. (Photo: courtesy of eximdesk.com)

Indian exporters expect to benefit from US-China tariff war

INDIA
Saturday, September 22, 2018, 01:00 (GMT + 9)

Indian seafood exporters are hopeful the United States-China trade war generates an increased demand of their products. Their hope stems from their better prices and the additional tariff recently imposed by Trump's administration on Chinese imports, particularly on aquacultured seafood products. 

The United States Trade Representative (USTR) announced this week that a 10 per cent additional tariff would be imposed on a massive amount of Chinese imports, effective on September 24. The USTR additionally announced that these tariffs would increase to 25 per cent on January 1, 2019.

Exporters from India consider that the new levy will discourage exports of Chinese seafood to the US and that as India is the largest exporter of seafood to the North American country, it will open up more scope for supply of the perishable items and with good prices, The Business Standard reported.

Source: National Fisheries Institute (US)/Stockfile

Indian entrepreneurs recall that in 2017, the US imported roughly USD 2.7 billion worth of Chinese seafood of which some USD 1 billion was comprised of aquacultured seafood. 

"As on date, India is the largest exporter of seafood to the US. If China's supply to supermarkets and food institutions of US drops, automatically, Indian products will be preferred," said Rajen Padhi, director general of Utkal Chamber of Commerce and Industry and a seafood consultant.

“The US' additional tariff on Chinese products is definitely encouraging news for India,” he added.

The Southern Shrimp Alliance (SSA) is an organization of shrimp fishermen, shrimp processors, and other members of the domestic industry in the eight warmwater shrimp producing states of Alabama, Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina, and Texas.

For a while, the Southern Shrimp Alliance (SSA) has been consistently advocating in the US for the imposition of these additional tariffs through the President's Section 301 authority on imports of farmed seafood originating from China.

"By recklessly tolerating the unprincipled use of antibiotics in Chinese aquaculture, seafood importers in this country have forced others to absorb the costs while they reap profits. President Trump's additional tariffs appropriately level the playing field for all seafood producers -- including foreign producers in countries outside of China -- that supply the US market that have been trying to do right by their customers," said John Williams, SSA executive director.

“President Trump’s bold action yesterday shows, once again, that this Administration is committed to reforming and improving our nation’s trade policy,” stressed Williams.

 
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