Vietnamese goods most sued by the US for trade remedies

VCN- As of the end of September 2019, there were 154 trade remedies cases investigated by 19 countries and territories for Vietnam's exports. Among them, the US was the leading country with the most investigations.  
vietnamese goods most sued by the us for trade remedies Inspect production capacity of enterprises to prevent forge of goods origin
vietnamese goods most sued by the us for trade remedies Export of goods "reeling" in fear of tax avoidance
vietnamese goods most sued by the us for trade remedies Trade remedies a major challenge for both domestic and export markets
vietnamese goods most sued by the us for trade remedies
The steel industry regularly faces trade remedies lawsuits. Photo: N.T

Leading is anti-dumping lawsuit

According to the Vietnam Chamber of Commerce and Industry (Ministry of Industry and Trade), as of the end of September, there were 154 trade remedies cases required for investigation by 19 countries and territories for Vietnam's exports.

Notably, the US was the leading country with the largest number of investigations (30 cases, accounting for 19 percent); followed by Turkey (21 cases, accounting for 13 percent) and India (14 cases, accounting for 9 percent).

Leading are anti-dumping investigation cases (87 cases, accounting for 56 percent); safeguard cases (33 cases, accounting for 21 percent); anti-dumping tax evasion cases (19 cases, accounting for 13 percent) and anti-subsidy cases (15 cases, accounting for 10 percent).

Facing trade remedy lawsuits, the Ministry of Industry and Trade has supported businesses to respond promptly.

Vietnam has achieved positive results in cases. Specifically, Vietnam successfully sued for 57 of 137 cases that ended the investigation; sued five cases with the WTO Dispute Settlement Body, of which three cases ended with positive results and two cases are in the process of trial.

Prevent origin fraud and tax evasion

According to the Ministry of Industry and Trade, as Vietnam has integrated deeply into the regional and global economy, it needs to create an open investment and production environment to grasp opportunities from new investment flows, improve domestic production capacity, and encourage exports. On the other hand, it needs to strengthen management measures to forecast, prevent, and handle tax evasions and origin fraud for sustainable development of production, export and import.

This requirement is becoming increasingly urgent when the safeguard trend continues to increase in many countries in the world and the US-China trade war is complicated.

According to Le Trieu Dung - Director of Trade Remedies Department, in the context of increasing safeguard trend, especially for many products such as steel, aluminum, agricultural products, seafood, to minimise the application of trade remedies, it needs a comprehensive, long-term strategy in developing production chains, increasing added value for Vietnam's exports.

“In addition to focusing on in-depth development (increasing domestic added value), Vietnam also needs to closely monitor for early warning if our exports to some markets increase sharply. To effectively carry out this warning, it is necessary to have close coordination between the Ministry of Industry and Trade and the relevant ministries and sectors, especially the General Department of Vietnam Customs (Ministry of Finance),” Dung said.

In response to the arising consequences, contributing to the effective and sustainable exploitation of FTAs, in early July this year, the Prime Minister also signed Decision No.824/QD-TTg promulgating the scheme on strengthening State management on the avoidance of trade remedies and origin fraud (Scheme 824).

The Ministry of Industry and Trade is also advising the Government to develop a resolution on some urgent measures to strengthen State management on the avoidance of trade remedies and origin fraud.

Avoiding trade remedies, origin fraud is the act of goods being labelled with Vietnamese origin to export to other countries to enjoy tax incentives or avoid trade safeguard taxes from importing countries. The most common illegal avoidance is simple processing with insignificant value added or even transshipment or transit in Vietnam but goods are still declared as Vietnamese origin.

In the context of complicated international developments, especially the US-China trade war, with the application of trade remedies, the investigation trend of anti-trade remedies against Vietnam’s export goods have increased (so far there are 19 investigation cases of anti-evasion investigations into Vietnamese exports)

by Nguyen Thanh/Ngoc Loan

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