US embassy cable - 05BANGKOK6693

UNCLAS BANGKOK 006693 
 
SIPDIS 
 
DEPARTMENT FOR EAP/MLS AND EB 
COMMERCE FOR 4430/EAP/MAC/OKSA 
TREASURY FOR OASIA 
STATE PASS FOR US INTERNATIONAL TRADE COMMISSION 
STATE PASS TO USTR FOR WEISEL, COEN 
 
E.O. 12958: N/A 
TAGS: EAGR, ETRD, ECON, TH 
SUBJECT: THAI GROUPS PRESS TO LIFT U.S. SHRIMP TARIFFS 
 
1. On October 26, about forty persons representing various 
Thai shrimp farmer organizations held a press conference on 
the sidewalk outside of Embassy Bangkok, expressing concern 
about the outcome of the U.S. International Trade Commission 
(ITC) review of anti-dumping tariffs on Thai shrimp exported 
to the U.S. In November, the ITC is scheduled to complete a 
"changed circumstances review" of anti-dumping measures 
based on the damage caused to shrimp hatcheries by the 
December 2004 tsunami. 
 
2. After speaking to the assembled print and broadcast 
media, the shrimp farmer representatives presented a letter 
signed by the presidents of ten regional "shrimp farmer 
clubs" to the embassy for delivery to the ITC. Text of the 
letter follows: 
 
3. Begin text: 
 
Dear Sirs: 
Diplomatic relations between the American government and the 
Royal Thai government dated back more than 169 years since 
1883. The relationship was further strengthened after the 
World War II. Mutual assistance was rendered in all aspects 
including political, economics and social responsibility. 
We, the Thai people, are very concerned for our American 
friends when Hurricane Katrina hit the US southern states 
late August. We would assist in whatever way we could. 
 
The tsunami that devastated Thailand's southern provinces on 
December 26, 2004 had destroyed more than 30 percent of the 
shrimp hatchery operations. To date, no restoration has 
taken place. Damaged hatcheries are left in the same 
condition as when the ITC team went to survey the area 
during August 15-17, 2005. Though more than 90 percent of 
the hatcheries had received monetary compensation from the 
government, the amount was so small there is no way for the 
operators to resume their business. Many have given up and 
resort to finding works in other fields and profession. 
Also, many landowners, who rented out their land to hatchery 
operators, now invest to build hotel and resort on their 
property. Only 10 percent of the hatchery operators are 
adamant and continue to find ways to start up their shrimp 
hatchery operations but to no avail. 
 
Because of the aforementioned scenario, Thailand's shrimp 
hatchery production has been way below expectation. More 
than 30 percent of the shrimp fires production eliminated by 
the tsunami has impacted and greatly reduce the capability 
of Thai shrimp production. We, the undersigned, represent 
the country's honest and hardworking shrimp farmers. We 
implore the Commissioners for their sympathy and to revoke 
the dumping duties on Thai shrimp. Your kind act will enable 
Thailand to be able to compete fairly with other shrimp 
producing countries. 
 
We humbly submit our request for your consideration and 
looks forward to receiving a just decision. 
 
End Text. 
 
4. Comment: The issue of anti-dumping duties on shrimp has 
been a frequent topic in the press and, to some degree, is 
seen by many Thais as an indicator of USG responsiveness to 
Thai concerns - with some comparing the need for US 
understanding of Thailand's position to the situation during 
the 1997 financial crisis. PM Thaksin raised this issue with 
the President in their September 19 White House meeting. 
More recently, the PM's chief advisor told Ambassador Boyce 
that Thailand would withdraw its ban (because of BSE 
concerns) on imports of U.S. beef, but pointedly added: "and 
what will you do now about our shrimp issue." It is a safe 
bet that the final decision of the ITC will be front page 
news here for several days after the fact.