Shrimp decision fuels trade questions

The World Trade Organization (WTO) recently ruled that the US violated global trade regulations when it used zeroing methodology in calculating anti-dumping tariffs on Vietnamese frozen shrimps. General secretary of Vietnam Association of Seafood Exporters and Producers (VASEP) Truong Dinh Hoe shed some light on the issue.

Is there any possibility that the US will build other trade barriers against Vietnamese exports after the WTO’s Panel decided the US’s application of the zeroing methodology to calculate anti-dumping tariffs on Vietnamese frozen shrimps was against WTO regulations?

The US’s usage of the zeroing methodology in the Vietnamese shrimp case’s administrative review was not compliant with WTO rules. It was not a new trade barrier the US applied towards countries exporting products into the US market. In fact, US regulations are dissimilar to those of the WTO, whereas as a WTO member, Vietnam has the right to demand the US to adhere to WTO rules in global trade. This means the US must not use the zeroing methodology in its administrative reviews relevant to Vietnam’s shrimp case. Removal of the zeroing methodology, however, does not mean Vietnam can export whatever volume of shrimp products into the US market afterwards.

Why did some media agencies mistakenly claim Vietnam had won the shrimp anti-dumping lawsuit?

Some media agencies misunderstood the case. I think the case will be long-lasting and cannot be immediately addressed. Vietnam must continue demonstrating to the US that we did not sell shrimps at dumping prices in the US market.

What must local shrimp exporters do to hike export volumes to the US market?

Local shrimp exporters should continue their casual production and trading activities. The US’s usage of the zeroing methodology relates to the part of legal procedures, but not to trading activities. Besides, the WTO’s recent ruling was beneficial to Vietnam as it would help us more easily prove that we did not dump shrimps in the US market in the US’s later administrative reviews.

The anti-dumping tariffs on Vietnam’s frozen shrimps in US’s later administrative reviews would fall to zero per cent with the removal of the zeroing methodology. Purchases, however, are decided by US importers but not by the US administration. Therefore, psychologically US importers would buy bigger volumes of shrimps from Vietnam once they realised Vietnamese companies did not dump the products in the US market. – VIR

Tags: Vietnam shrimp exports

Posted by VBN on Jul 20 2011. Filed under Sea food. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry