In order to discourage imports to the US, the Donald Trump administration has imposed a non-tariff barrier by including shrimps in its Seafood Import Monitoring Program (SIMP).
The move may hurt exports from India. The US is the largest market for the $ five billion Indian seafood sector. Indian exporters are already battling lower international shrimp prices due to the glut in supply.
SIMP requires traceability information on imported seafood from the point of capture to point of first sale in the US in order to thwart illegal, unreported and unregulated (IUU) fishing activity. SIMP will come into effect from January 1, 2019.
Inclusion of shrimp in the SIMP has come as a double whammy for Indian exporters as the US had recently enhanced the anti-dumping duty (preliminary) by 25.39 per cent for Vietnam from 4.8 per cent last year. India largely exports block frozen shrimp to Vietnam for reprocessing and forward shipment to customer countries like China, those in the EU, Japan and the US, reports said.