How will seafood exports to the US be affected after the US election?

Processing seafood for export by Binh Dinh Seafood Joint Stock Company. Photo: T.H

Challenges from trade defense policies

In recent years, the US has always been Vietnam's largest seafood export market. Seafood export turnover to the US in the past 5 years has fluctuated from US$1.5 billion to US$2.1 billion per year.

According to Ms. Le Hang, Communications Director of the Vietnam Association of Seafood Exporters and Producers (VASEP), despite always facing strict protection policies such as anti-dumping and anti-subsidy taxes, the demand of the US market is still very large and the quality of Vietnamese seafood is increasingly improving, helping to maintain and expand its position in this market.

Therefore, Vietnam's seafood trade with the US is less affected by political fluctuations such as the US presidential election results, although the election results can cause disruption in world trade.

However, with the re-election of President Donald Trump, the US's unique trade policies under Trump may create both opportunities and challenges for Vietnam's seafood exports in the time to come.

In the context of the US-China trade confrontation, there may be major changes in the US supply chain and imports. Specifically, the US may reduce imports of seafood products from China and seek alternative sources, including Vietnam.

This helps increase Vietnam's seafood exports to the US market. In addition, China, with reduced seafood imports from the US, can switch to importing seafood products from Vietnam instead.

However, to make the most of these opportunities, Vietnamese seafood enterprises need to maintain high product quality, increase deep processing and exploit free trade agreements (FTAs) to expand markets and improve competitiveness.

While Vietnam can take advantage of some opportunities, Vietnamese seafood businesses also face US trade defense measures. These measures may include anti-dumping duties, anti-subsidy duties and strict product quality requirements.

Although the results of anti-dumping taxes on shrimp, pangasius and anti-subsidy taxes on Vietnamese shrimp exported to the US tend to be more favorable in 2024, businesses still need to be cautious and strategic when exporting to this market.

According to Ms. Le Hang, the US government under Mr. Trump has increased protection measures related to food safety and quality standards. This could make it difficult for Vietnamese seafood exporters to comply with stricter food safety standards, leading to increased production and inspection costs.

In addition, the US's protectionist policies and tariff barriers could also increase competition between Vietnam and other seafood exporting countries such as India, Ecuador, or Indonesia, major competitors in the seafood industry.

Proactive response

According to experts, to increase seafood exports to the US in the context of changing international trade policies, Vietnamese seafood enterprises need to be proactive and flexible in adapting to market fluctuations.

Accordingly, exported seafood products must fully comply with the FDA (the US Food and Drug Administration) regulations, including standards on hygiene, food safety and disease prevention.

At the same time, businesses need to ensure sustainable production standards and strict quality control from farming to processing to meet the increasingly high demands of the US market.

According to Ms. Le Hang's analysis, American customers and consumers are increasingly concerned with issues related to sustainability, environmental protection and social responsibility.

Therefore, Vietnamese seafood enterprises should apply sustainable farming methods, such as clean shrimp farming, and aquaculture according to international standards (GlobalGAP, ASC, MSC) to enhance their reputation and meet the increasing demands of the market.

At the same time, businesses need to provide transparent information about the production process, raw material origin and quality standards, which will help build trust with consumers and partners in the US, while meeting the needs of distributors, supermarkets and large retail systems in the US.

Vietnamese seafood enterprises need to improve their competitiveness, have effective production and business strategies with reasonable and transparent product prices, and need to have plans to quickly respond to changes in tariffs and US trade defense measures.