A seminar, themed "Early warning system for trade remedies: Maintain export competitiveness" is held by Industry and Trade Magazine. (Photo: Vietnam+)Hanoi (VNA) – An early warning system for trade remedies is needed to help ensure sustainable trade development by helping businesses better respond to possible trade probes, heard a seminar on the issue held by Industry and Trade Magazine on November 6.
Thanks to free trade agreements with tariff barriers gradually being removed, the exports of Vietnamese products have been on the rise. However, they are likely to face trade defence lawsuits.
An early warning system for trade remedies is needed to help ensure sustainable trade development by helping businesses better respond to possible trade probes, heard a seminar on the issue held by Industry and Trade Magazine on November 6.
Speaking at the event, Commercial Counsellor and head of the Vietnam Trade Office in the US Do Ngoc Hung said that Vietnam is an important trade partner of the US but also faces risks relating to trade remedies.
The number of trade defence probes that the US has applied to Vietnam accounts for about 53% of the total number of trade defence cases against Vietnam's exported goods. Meanwhile, US businesses are very aware of their rights and tools when importing goods with high competitiveness that can harm the domestic manufacturing industry. They also know how to use trade remedies to protect their interests if being sued in their home market.
Moreover, not only the US Department of Commerce but other agencies such as the International Trade Commission, US customs or border guards can investigate trade defence cases.
As of October 2023, Vietnamese products were involved in up to 58 trade defence cases in the US. The types of affected products are expanded and even not Vietnam's key export products.
Hung said that through market monitoring, it can be seen that Vietnamese exporters have paid more attention to trade defence cases as well as the early warning system. They have fully participated and closely followed warnings from the Trade Remedies Authority of Vietnam under the Ministry of Industry and Trade (MoIT).
Hung said the early warning system is very important because it creates conditions for businesses to learn about the US's legal regulations on trade remedies early. In addition, thanks to the warning, businesses can start to prepare the necessary resources to respond to possible lawsuits.
Increased exports put pressure on businesses due to trade defence lawsuits. (Photo: Vietnam+)Once being sued, Vietnamese businesses will have to invest a lot of efforts and human, time and financial resources to participate throughout the investigation process of the case which usually costs about 12 months.
With proactive response, they can provide the US’s investigation agencies with proper documents in the correct format and on time, he said.
Director of the WTO Centre and Integration under the Vietnam Chamber of Commerce and Industry (VCCI) Nguyen Thu Trang said that not only in the US but in all countries, trade defence lawsuits are a very complicated legal and technical process. Notably, most of the process must be done abroad, which adds difficulties for businesses.
The early warning mechanism allows businesses to see risks and prepare for them, Trang said.
Nguyen Thu Trang, Director of the WTO Centre and Integration under the Vietnam Chamber of Commerce and Industry. (Photo: Vietnam+)Chu Thang Trung, Deputy Director of the Trade Remedies Authority of Vietnam said that the ministry has been working to increase businesses’ understanding about trade remedies.
With data from the early warning system, the ministry can concentrate on products and industries that face a high risk of trade defence probes.
He informed that the MoIT plans to continue to expand the warning system for other markets like Southeast Asia, and Turkey besides the US, Canada and Australia./.
