Export companies should have a division specialising in trade defence to meet the requirements of the investigation agency in time (Photo bizlive.vn) Hanoi (VNA) - Asimporting countries impose trade barriers to protect their goods and products,they often utilise trade remedies against exporting countries. There areshort-term solutions for exporters, like Vietnam. But in the long run,enterprises still need strategic planning and specific steps to overcome tradebarriers in order to increase exports and develop sustainably.
When markets open tofulfill integration commitments, importing countries tend to increase scrutinyon goods from Vietnam, often applying trade remedies like anti-dumping andanti-subsidy policies. Despite continuously facing these trade remedies,Vietnamese businesses remain very passive in guarding against them. They lackedunderstanding of trade defence tools.
As importing countrieshave suffered strong competition, especially from the near markets such asChina, Malaysia and Indonesia, the significance of the trade defence ofbusinesses has also increased.
Nguyen Phuong Nam,deputy head of the Department of Trade Defence under the Ministry of Industryand Trade (MoIT), said that there have been more than 120 trade remedy lawsuitsrelated to Vietnamese exports initiated by importers such as the US, EU, Brazil,Turkey and Australia.
Statistics from thedepartment show that in the 2016-17 period, Vietnamese firms have been sued 23times by importing countries. Australia brought six anti-dumping andanti-subsidy cases against firms exporting aluminium and galvanised steel,coils and wind towers.
Tran Thanh Hai, DeputyDirector of the MoIT’s Import-Export Department, said that the ways in whichcountries can enact Technical Barriers to Trade (TBT) are very diversified andcomplicated, especially in big markets such as the US, EU and Japan. Forexample, for textiles and garments, the US and EU are two major markets for Vietnam’sgarment exports. However, these are also the most difficult markets with manyregulations that constitute Technical Barriers to Trade.
The US has over 60technical regulations for textiles and garments on labeling, symbol, clothinginstruction, and fire resistance standards for yarns, wool carpets fire andsleepwear; and regulations on children’s wear. In addition, the EU also hasover 80 technical regulations such as: EC label, regulations on labeling andregistration, evaluation, licensing and restriction of chemicals (REACH),regulations on ecolabel and OKO-Tex 100 label or origin regulations, Hai added.
In order to successfullyappeal in the export markets, experts advise Vietnamese businesses toscrutinise the plaintiffs’ allegations about the country’s subsidy programme.At the same time, ministries, sectors and associations should closelycoordinate in providing information and explanations on the alleged programmeto the investigating authority.
In addition, businessesshould carefully analyse the plaintiff’s question, allegations and facts todevelop an appropriate strategy before and during the preparation of theresponse and reporting of the data.
As predicted by theDepartment of Trade Defence, in the upcoming time, firms in importing countrieswill use more trade remedies. Trade remedies areconsidered the final barrier against the current trend of deepening and broadeninginternational integration.
As Vietnam faces othercountries’ implementation of trade remedies, it should acknowledge that theyare also a useful tool domestically. They are easier to use than otherinstruments that WTO commitments allow. In the near future, trade remedies willbe a very effective tool to protect domestic businesses from importcompetition.
Export companies shouldhave a division specialising in trade defence to meet the requirements of theinvestigation agency in time.
Currently, the MoIT isurgently working with related units to solve difficulties for businesses in atimely manner. Particularly, the ministry will abolish the specialisedinspection regulations and procedures which have caused difficulties forenterprises in the past. -VNA
VNA
