Update on Shrimp Trade Issues for 2016 Presentation to the American Shrimp Processors Association Stewart and Stewart April 8, 2016

Overview Update on CDSOA Antidumping Orders Second Sunset Review Review of Recent Trade Trends and Opportunities

$1.5 million left in clearing accounts I. CDSOA $1.5 million left in clearing accounts Ecuador $34,717.28 Brazil $103,201.60 India $255,618.58 Thailand $454,914.11 Vietnam $247,865.04 China $402,485.70 Total $1,498,802.31

II. AD Orders POR 7 (2011/2012): POR 8 & 9 (2012/2013 and 2013/2014): India litigation re targeting – ASPA prevailed in defending Commerce’s final results. The case is now on appeal at the Federal Circuit. ASPA’s response brief is due April 27. POR 8 & 9 (2012/2013 and 2013/2014): Commerce started using the differential pricing test. The results are being challenged at the Court of International Trade by respondents.

II. AD Orders POR 10 (2014/2015): POR 11 (2015/2016): Preliminary results: India: 0.8% - 8.32% Thailand: 0% - 1.36% Vietnam: 2.86% - 4.78% After briefing, final results currently due in July. POR 11 (2015/2016): Review requests filed on China, India, Thailand, and Vietnam at the end of February. Reviews were initiated on April 7.

III. Second Sunset Review The second sunset review was instituted March 1, 2016 Commerce determines whether dumping is likely to continue or recur if the orders are revoked The ITC determines if material injury is likely to continue or recur if the orders are revoked If either agency’s determination is negative, the orders are revoked

III. Second Sunset Review ASPA filed its substantive responses at Commerce on March 31, 2016 ASPA argued that dumping by all five countries will continue or recur, and identified likely margins No respondents filed substantive responses at Commerce We expect Commerce to conduct expedited reviews, with final results in late June

III. Second Sunset Review The ITC is currently in the adequacy phase It is examining responses filed by ASPA, other domestic parties, and respondents from Brazil, India, Thailand, and Vietnam on March 31, 2016 If domestic responses are inadequate, the orders are revoked If no foreign country response is adequate, reviews are expedited

III. Second Sunset Review ASPA and other domestic parties represent most of the domestic industry, so we expect our responses will be found adequate The coverage of foreign producer responses means full reviews are likely on all countries Our comments on adequacy are due May 13, 2016 The Commission will make its adequacy determination on June 6, 2016

III. Second Sunset Review If the ITC conducts full reviews, we estimate: Draft questionnaires early Sept. 2016 Comments on draft questionnaires mid-Sept. 2016 Questionnaires sent to parties mid-Oct. 2016 Questionnaire responses due mid-Nov. 2016 (period covered will be 2011-2015 and part 2016)

III. Second Sunset Review If the ITC conducts full reviews, we estimate: Pre-Hearing Brief late Dec. 2016 Hearing early Jan. 2017 Post-Hearing Brief mid-Jan. 2017 ITC vote mid-Feb. 2017 ITC determination due Feb. 24, 2017

III. Second Sunset Review Factors the ITC considers in a sunset review: Whether to cumulate all five countries or examine some separately (no discernible adverse impact) Likely volume of subject imports: Likely increases in production capacity or unused capacity in the five countries Existing inventories or likely increase in inventories Third-country barriers Product-shifting

III. Second Sunset Review Factors the ITC considers in a sunset review: Likely price effects of subject imports Underselling Price suppression or depression Likely impact on the domestic industry Vulnerability of the domestic industry Negative effects on production, sales, market share Negative effects on employment and wages Negative effects on profits and investment

IV. Trends and Opportunities Imports rose sharply in 2014 and continued to grow in 2015 Imports are higher in first two months of 2016 than they were in the same period last year 2015 landings were at a historically low level, though they appear to be rebounding in 2016 Import prices fell sharply in 2015 and are still low in 2016

IV. Trade Trends

IV. Trade Trends

IV. Trade Trends

IV. Trade Trends

IV. Trade Trends

IV. Trade Trends Average Ex-Vessel Shrimp Prices Alabama, Louisiana, & Mississippi Size Feb. 2015 Feb. 2016 % Change UN/15 $8.80 $9.59 8.98% 15/20 $6.79 $5.48 -19.29% 21/25 $6.15 $4.01 -34.80% 26/30 $5.46 $3.65 -33.15% 31/35 $4.55 $2.52 -44.62% 36/40 $2.15 -46.38% 41/50 $3.75 $1.77 -52.80%

IV. Opportunities Changed circumstances reviews for excluded companies (India, China) Circumvention research PROTECT Act False Claims Act Administrative reviews Thailand forced labor issues