Major population across the world relies on seafood as their primary diet and it’s been that way for a very long time. According to archaeological evidence, Homo sapiens mastered the art of fishing somewhere around 40,000 years ago- we’ve been eating seafood ever since.
Cumulative urban population in developing economies is leading to a rise in demand for seafood. Moreover, other factors spurring the demand for different types of shrimps over the forecast period are the growing propensity of spending on seafood products as well as initiatives taken by several manufacturers in setting up several food processor units in different regions.
Furthermore, species segment of the global shrimp market acquires the major market share because of the rising demand among consumers for fresh & frozen seafood products. Also, as per a recent study it was found that more than 3/4th of the total sea food consumed in the United States is in frozen and fresh form. Moreover, U.S. region dominates the global shrimp market due to the rising demand of sea food consumption in home as well as restaurants. The major reason for increased demand is high nutritional value at affordable price.
Additionally, sea foodstuff is staple food in many parts of the world as people living near sea coast mostly consume sea food. However, there are several regions where there is a shortage of other varieties of food products, which is further driving the growth for shrimp market across the globe. On the other hand, the major hindrance to the growth of market is environmental threat caused due to the setting up of a number of shrimp manufacturing industries.
Shrimp is a small marine animal with elongated body and free-swimming invertebrate that mostly forages near seabed in rivers, lakes, coasts as well as most estuaries. It is also the most frequently traded seafood plus plays a vital role in food chain for several animals (fish to whales) as well as it is an ideal component for several cuisines. Moreover, shrimp contains high volume of magnesium, zinc, copper, iron, sodium, selenium as well as it is rich in vitamins A, B6, C & E and is low in fats. Additionally, these days’ shrimps are sold in several forms like fresh, smoked, dried, & processed.
The major factor responsible for the constant development of the shrimp supply is aquaculture. Developing economies and other countries researching, in particular, are playing an important role in shrimp farming and aquaculture.
Changing the GSP status of Thailand in the European Union
There are lots of differences between the United States and Europe whereas the United States was an open market with no charges on the imports of shrimp. On the other hand, in Europe, the tariff of MFN for frozen shrimp was more than 15% and for canned and cooked shrimp greater than 25%. The European Union approved the emerging regions independent tariff reductions below the Generalized System of Preferences (GSP) to assist industrialization. In the European Union’s GSP, cooked and raw shrimp were questioned to correspondingly up to more than 5% and 6.5% tariff.
Reports of summer and fall of 2001 textured in Europe regarding the high levels of nitrofurans and chloramphenicol in shipments of shrimp from East Asia. The antibiotics were restricted in the European Union. Thoughts of an extensive use of antibiotics were gathered in Asian shrimp farming. The United States will progressively monitor antibiotics in import. In addition, there was a substantial difference in how the European Union and the United States discussed the problem of antibiotic that participated in the shift in the shrimp market.
- Implementation varies with a terminus. The European Union has substitutes beyond the temporary bans used against China or Vietnam. Huge testing causes delays in cost. Earlier to the crisis the European Union verified around 11% of Thai shrimp.
- For safeguarding the food chain contamination, the European Union primarily demolished the hampered imports. In the year 2004, the European Union was studying its policy of zero-tolerance considering the possibility of sending back or re-exporting to the exporter shrimp with lesser ppb.
It is very important to consider the multidimensional frictions of all the trading partners to understand what controls the trade flows in two countries. Findings for the shrimp market are following the important line of research displaying in what manner the retraction of Thailand’s favored tariffs in Europe hampers the bilateral trade within the United States and Thailand. Eroding the preferences for developing countries and the concerns of international food and safety standards, are disappearing in future and current trade liberalizations, specifically when it comes to loosening the agricultural products.