First US trade probe against Chinese agricultural products

US has launched a widespread anti-subsidy probe against frozen warm-water shrimp imported from seven countries, including China.

The company in question here is Guolian Aquatic in South China's Guangdong Province. How Guolian tackles this accusation remains to be seen. This is the first time that the U.S. has launched a countervailing investigation into Chinese agricultural products.

As the leading shrimp exporter in China, Guolian Aquatic nets revenues of 120 million US dollars per year. 70-percent of those revenues come from doing business with the United Sates.

According to the U.S. government, Guolian has been listed as a mandatory respondent in the case, meaning the shrimp exporter may face a special countervailing duty by the U.S. government. Guolian's board secretary, Guo Wenliang, says the U.S. probe presents both challenges and opportunities.

He said, "The probe involves companies from seven countries, and our major competitors are all included. This means we have a chance to get a lower tariff rate compared to others. If Guolian wins, the company can raise its sales and profit margin as well."

Guo also says that the company has confidence in winning the case. The company received notice of the dispute as early as December 28th of last year. Since then, it has hired a legal team to make its defense. Guolian is also a public company, so transparency and readily available evidence is quite accessible.

Guolian is one of only two companies in the world that enjoy zero duty on exports of shrimp to the U.S.. It provides 90-percent of the total prawn exports to the US from China. Preliminary results of the case are expected to be made in March and the International Trade Commission will give a final ruling in October.