Increasing conflict, Vietnam faces 160 trade remedy lawsuits

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Steel is a typical industry that faces trade remedy lawsuits. Photo: Internet

According to the Department of Trade Remedies (Ministry of Industry and Trade), the trend of protectionism and trade conflicts is very complicated, especially in the relationship between major economies, affecting many aspects of the global, regional and Vietnam’s economy.

Regarding the Vietnam-EU Free Trade Agreement (EVFTA), expected to take effect from July 2020, Le Trieu Dung, Director of the Department of Trade Remedies, assessed that when the EVFTA takes effect, trade in goods between the two sides will increase because the majority of import tariff lines will fall to 0%.

It can be predicted that import and export turnover between Vietnam and the EU will increase rapidly, leading to the increase in the number of trade remedy cases between the two sides (to protect the domestic production industry from the increase of imported goods).

In addition, because benefits provided by the EVFTA are great, some businesses may abuse incentive policies from the agreement to implement origin fraud and evade trade remedies that the EU is applying to other countries to enjoy illicit benefits.

“The implementation of the EVFTA requires businesses to learn and master the commitments in the agreement, including the provisions on trade remedies so that they can prepare and exploit the benefits brought by the Agreement. At the same time, protecting their legitimate interests,” Dung emphasized.

For Vietnamese exporters, to respond effectively to foreign trade remedies, Dung said that enterprises need to diversify the market and regularly search for new markets, diversify products, avoid overheating export growth to a market, especially markets that regularly use trade remedies tools and have investigated Vietnam's export goods.

Besides, gradually shift from price-competitive strategy to quality and brand competition; provide appropriate strategies to review selling prices to avoid being considered as dumping and coordinate closely with local partners to update information.