Tariff increase violates free trade agreement

VASEP has confirmed that the US Department of Commerce (DOC) increase in its antidumping tariff on Vietnam’s tra (Pangasius) fish runs counter to the letter and spirit of the free trade agreements between Vietnam and the US.
The Vietnam Association of Seafood Exporters and Producers (VASEP) hasconfirmed that the US Department of Commerce (DOC) increase in itsantidumping tariff on Vietnam’s tra (Pangasius) fish runs counter to theletter and spirit of the free trade agreements between Vietnam and theUS.

In an open letter sent to the VietnameseGovernment and the US Ambassador in Vietnam on Sept. 16, VASEP expressedindignation and concern over DOC’s preliminary antidumping duty ratesin the sixth administrative review applied to Vietnam’s tra frozenfillets exported to the US.

The duty rates arein excess of 100 percent, far exceeding any prior rates in this unfairdumping case lasting more than eight years, and clearly amounting to apunitive tariff on Vietnamese fish fillet exports, said the association.

According to VASEP, the calculated dumping rates cannot be supported by the evidence and data submitted for this review.

VASEP expressed its particular concern at DOC’s unjustified change inthe surrogate country used to value raw material inputs, suddenswitching from Bangladesh to the Philippines after consistentlyrejecting the Philippines in all prior administrative reviews due to thepoor quality of the pricing data, the lack of publicly available data,the extremely small size of the Philippine catfish industry, and thefact that the Philippines has not exported products of this fishspecies.

VASEP said it believed the results arepolitically motivated, coming after significant recent lobbying effortsby the Catfish Farmers of America (CFA).

VASEPand individual fish processors/exporters requested the VietnameseGovernment undertake a comprehensive review of the harmful impacts ofDOC’s determination and urge DOC and the administration of the USto carefully reassess this decision, not allowing it to have a badinfluence on the well-developing bilateral relations between the twonations.

At a press briefing in Hanoi on Sept.17, VASEP Vice President Nguyen Huu Dung said the association andVietnam’s tra fish businesses will protect the industry by takingessential legal action to request DOC to change the results of the sixthadministrative review which are expected to be issued in March 2011 inaccordance with the US law and the WTO agreement.

VASEP and businesses are striving to complete practical data on trafish prices and evidence proving Vietnam did not dump its tra fish inthe US market in order to send this information to the US nextmonth.

Both sides are expected to discuss the issue at a meeting slated for November this year.

VASEP has also sent two of the biggest tra fish exporters – Vinh Hoanand Hung Vuong – to the US to meet US lawyers for consultation onthis disputed determination.

According to VASEP,Vietnam’s tra fish export value is estimated at 1 billionUSD in the first nine months of the year and 1.5 billion USD for thewhole year, with the US being the second biggest tra fish consumer,after the EU./.

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