Vietnam plans increased trade remedy actions

09:02 | 24/05/2019 Trade

(VEN) - Amidst Vietnam’s intensive integration into regional and global economies, trade remedies are becoming an important policy tool, helping to enhance the effectiveness of economic integration into the wider world.

vietnam plans increased trade remedy actions
Steel, including Vietnamese steel, is subjected to the highest number of trade defense investigations in the world

In response to the growing number of trade remedy cases and their complexity, 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. It will also boost its response to trade remedies by other countries against its exports.

A program formulated by the Ministry of Industry and Trade notes that the World Trade Organization (WTO), free trade agreements and other countries allow such measures to create a fair competition environment to support domestic production sectors. The application of trade remedies must be based on the full awareness and proper implementation of the party’s guidelines and the state’s policies, according to the program.

The mechanisms and policies on trade remedies need to take into account national industrial development strategies and policies, especially those on prioritized sectors, support industries, and small- and medium-sized enterprises.

The program also specifies five key tasks for relevant agencies and sectors, including perfecting policies and regulations on trade remedies, enhancing the enforcement of legal regulations on trade remedies, improving domestic industries’ trade remedy capacity, improving state agencies’ capacity in this regard, and boosting the protection of sectors’ interests in response to other countries’ trade remedies.

Le Trieu Dung, director general of the Trade Remedies Authority of Vietnam under the Ministry of Industry and Trade, said more than 140 cases of trade remedies were for Vietnam’s exports by its big trading partners such as the US, the EU and India. Previously, only vast-export-turnover items such as seafood were subject to investigation, but now, even products with minor export turnover are being investigated. In addition, investigation methods are also stricter.

In addition, cases of trade remedies are complicated due to the requirements of investigating authorities in providing documents, data, contracts and invoices.

Nguyen Thi Thuy Dung, head of Trade Remedies Division under the Vietnam Chamber of Commerce and Industry (VCCI)’s the WTO Center and Integration, said that according to WTO regulations, to initiate anti-dumping, anti-subsidy and safeguard lawsuits, plaintiffs must meet at least two conditions. Accordingly, at least 25 percent of total like output is produced by the domestic industry, and above 50 percent of total like output is produced by domestic producers expressing either support or opposition to the application.

Thu Ha