Update on Shrimp Trade Issues for 2016

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

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

3. I. CDSOA $1.5 million left in clearing accounts

4. II. AD Orders • POR 7 (2011/2012): • 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.

5. II. AD Orders • POR 10 (2014/2015): • 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.

6. 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

7. 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

8. 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

9. 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

10. 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)

11. 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

12. 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

13. 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

14. 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

15. IV. Trade Trends

16. IV. Trade Trends

17. IV. Trade Trends

18. IV. Trade Trends

19. IV. Trade Trends

20. IV. Trade Trends Average Ex-Vessel Shrimp Prices Alabama, Louisiana, & Mississippi

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