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PANEL RULES AGAINST U.S. ON SHRIMP NET

WASHINGTON (FNS) -- A World Trade Organization panel ruling that could increase supplies of shrimp at the expense of sea turtles drew condemnation from environmental groups, but the decision's effect at the seafood counter is uncertain.A WTO dispute resolution panel held the United States violated trade rules by prohibiting the importation of shrimp from countries that do not require their fishing

WASHINGTON (FNS) -- A World Trade Organization panel ruling that could increase supplies of shrimp at the expense of sea turtles drew condemnation from environmental groups, but the decision's effect at the seafood counter is uncertain.

A WTO dispute resolution panel held the United States violated trade rules by prohibiting the importation of shrimp from countries that do not require their fishing fleets to use devices to prevent sea turtles from being entrapped in shrimping nets.

The panel held that adherence to the WTO's free trade mandate overrides such environmental concerns and the United States could not mandate foreign fisheries use "turtle-excluding devices," which add to the cost of operations.

Last week's ruling, on a complaint by India, Thailand, Pakistan and Malaysia, could be appealed to the full WTO, and U.S. trade officials said they may do this. The United States, which imposed the netting rule in 1989, also could decide to ignore the decision and pay some type of compensation to the four nations.

Trade analysts here said the decision theoretically should lower shrimp costs. But they caution against making such predictions, noting some nations have refused to make their fishing fleet operators comply with U.S. law, while about 35 others have done so. A Food Marketing Institute spokeswoman said it is premature to say "what effect this decision could have" at retail.

Richard Gutting Jr., executive vice president of the National Fisheries Institute, Arlington, Va., applauded the WTO decision, stating the United States should seek agreements to protect sea turtles with Asian governments similar to ones concluded mainly with Caribbean Basin nations.

The Commerce Department reported that in 1996, the latest year for which data are available, the United States imported $2.46 billion worth of shrimp, while U.S. production totaled $509 million. American consumers' per capita shrimp consumption was 2.5 pounds in 1996, the agency reported.