US may ease ‘guarantee’ on shrimp

THAILAND - The United States is considering revising the 100-per-cent bank guarantee, or continuous bond (C-bond), that Thai shrimp exporters are currently forced to obtain, following free-trade talks in Chiang Mai last week, Commerce Minister Somkid Jatusripitak said yesterday.

Somkid said the proposed changes to the C-bond could help Thai exporters although the country would have to wait to see whether the US would make similar concessions to rival exporters to determine the effect it would have on the local industry.

At present, Thai shrimp products are subject to an anti-dumping rate of 5.79-6.82 per cent and exporters must also have a 100-per-cent bank guarantee of the shrimps’ export value before they can ship them to the US.

Somsak Paneetatyasai, president of the Thai Shrimp Association, said revising the C-bond would boost Thai exports to the US as it would allow shrimp exporters to have more liquidity to develop their farms instead of having money tied up in the guarantee.

Somsak added that the changes could also reduce the burden on exporters with regard to export risk and trade obstacles to the US.

“It is good news for Thailand. If the US is really considering revising the guarantee it will strengthen the Kingdom’s export competitiveness,” he said, adding that the country would have to wait to see if it made similar changes to the surcharge for Thailand’s export rivals including Ecuador and Vietnam.

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Source: The Nation

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