Vietnam boosts response to trade remedies

10:43 | 24/02/2020 Trade

(VEN) - Trade remedy lawsuits are complicated due to the requirements of investigating authorities for documents, data, contracts and invoices. The Ministry of Industry and Trade has worked with various authorities, associations and businesses to boost the protection of business interests in response to other countries’ trade remedies.

vietnam boosts response to trade remedies

Growing number of cases

According to the Trade Remedies Authority of Vietnam under the Ministry of Industry and Trade, as many as 154 trade remedy cases were launched by 19 countries and territories against Vietnamese exports in 2019, including 87 anti-dumping cases, 33 safeguard cases, 19 cases of anti-dumping duty evasion and 15 cases of anti-subsidy.

Le Trieu Dung, director general of the Trade Remedies Authority of Vietnam, said goods subject to investigation and application of trade remedies range from farm produce and seafood to industrial products. Previously, only items with massive export turnover were subject to investigation, but now, even products with minor export turnover are being investigated.

Data compiled by the Trade Remedies Authority of Vietnam also show that the US initiated the most investigations of trade remedies against Vietnam’s exports with 30 cases, accounting for more than 19 percent of total cases, followed by Turkey with 21 cases, India with 20 cases, and the EU with 14.

Some cases have had negative impacts on domestic business production. They include the US investigation of alleged circumvention of anti-dumping duty, countervailing duty against corrosion resistant steel (CORE) and cold rolled steel (CRS) imported from Vietnam, Australia’s anti-dumping investigation of wire rod in coil imported from Vietnam, and Canada’s anti-dumping and countervailing duty investigation on copper pipe fittings imported from Vietnam.

In particular, some regional countries such as Indonesia and Thailand have also promoted trade remedy lawsuits against Vietnam’s exports.

Support for businesses

Minister of Industry and Trade Tran Tuan Anh said trade remedy measures on export products are inevitable in the process of international economic integration.

To limit negative impacts on domestic businesses, the Ministry of Industry and Trade has provided support to help them overcome difficulties, promote production and develop markets.

The Ministry of Industry and Trade has submitted a project to the government on devising an effective early warning system for trade remedies as a means of supporting the Vietnamese business community in coping with trade remedy measures and protecting their legitimate interests. In addition, the ministry has cooperated with agencies and units to instruct businesses to handle trade remedy cases initiated by foreign countries in a bid to reduce negative impacts, while standing alongside businesses to protect their rights throughout the process.

Vietnam successfully appealed 57 of 137 trade remedy cases, in which the other side did not take any measures and ended the investigation.

In addition to responding to other countries’ trade remedies, Vietnam is set to increase the use of anti-dumping, anti-subsidy and self-protecting measures against harmful imports in order to support the future development of several domestic industries.

According to statistics, by the end of 2015, Vietnam only applied two trade remedy measures - on cooking oil and stainless steel. Since 2016, Vietnam has applied an additional six measures on DAP fertilizer, monosodium glutamate (MSG), and iron and steel products.

Industries protected by trade remedies are estimated to contribute about 6.13 percent to the country’s gross domestic product (GDP). The application of trade remedies has contributed to protecting jobs for workers, promoting domestic production, increasing state budget revenues and decreasing massive imports of many products, while helping businesses avoid losses and improve production stability.

In 2019, Minister of Industry and Trade Tran Tuan Anh signed Decision 755/QD-BCT on the use and response to trade remedy measures to support the development of several domestic industries during the 2018-2020 period, with a consideration to 2025. The program is designed to boost the protection of various sectors’ interests.

Thu Ha