Suing the USA at WTO: “We considered this step very carefully”

Government agencies moved energetically to prepare the nation’s first formal complaint to the World Trade Organization, and are hopeful of success.

Earlier this month, some local newspapers reported that the Government has filed a complaint with the World Trade Organisation (WTO) on behalf of Vietnamese shrimp exporters, protesting the US imposition of anti-dumping taxes on our frozen shrimp. Deputy Trade Minister Le Danh Vinh talked with Tuoi Tre about this.

Le Danh Vinh, Deputy Minister of Trade: It is very normal for a country to bring commercial conflicts with another country to the WTO. Many countries have done it, even when they have close and friendly relations. One reason Vietnam joined the WTO is so we can protect our interests via the WTO’s mechanism

“After VASEP (The Association of Vietnamese Seafood Exporters and Producers) proposed that the Government bring the matter of the USA’s imposing anti-dumping duties on Vietnamese shrimp to the WTO, we have moved energetically. On February 2, Vietnam officially initiated the case.

Tuoi Tre: Some news agencies said that VASEP proposed the WTO complaint a long time ago. Why didn’t the Government act until February 2?

Deputy Minister Vinh: VASEP sent its petition to the Ministry of Industry and Trade (MoIT), the Ministry of Agriculture and Rural Development and the Vietnam Chamber of Commerce and Industry early in 2009. To protect the interests of Vietnamese enterprises and exercise of its rights at the WTO, MoIT and related agencies diligently researched the case. This is Vietnam’s first complaint to the WTO. We must take care to do it correctly.

A number of ministries, including Finance, Justice, Foreign Affairs and Agriculture and Rural Development have helped MoIT to analyze the case. In mid-2009, based on the ministries’ recommendation, the government agreed in principal to file a complaint at the WTO at the request of VASEP.

However, many technical issues still had to be carried out before initiatiing the case, for example consulting with the WTO Centre for Legal Assistance, hiring lawyers and preparing evidence. The dossiers for a WTO lawsuit are lengthy, so we needed time to prepare them.

TT: What is the procedure? How long will it take?

Vinh: We will have to follow WTO’s mechanism. The first step is direct discussion between the parties. Vietnam’s representative at the WTO sent our request for discussion of the matter according to WTO rules to the UN Trade Representative. The US has announced that they received the request.

If the case cannot be settled during this 60 day procedure, Vietnam will ask the WTO to step in, and at that time WTO would perform necessary steps for a formal hearing and decision. It is rather like a trial; if the losing party appeals the decision, it may take some considerable time to finish the case according to WTO regulations.

TT: Lawyers are very important to the success of a legal action. Will Vietnam rely on foreign or local lawyers?

Vinh: We’ll make a careful choice. The lawyers who defend Vietnam’s interests must be good at English and international law. It is highly possible that we will choose a foreign lawyer for this case if it can’t be settled in the discussion phase.

TT: What do you think about Vietnam’s chances to win in this lawsuit?

Some experts recently said that Vietnam has a 60 to 90 percent chance of victory. It is premature and subjective to reach such a conclusion. The two sides have just started the first step. This case also has complicated technical factors so it is difficult to make an early statement. However, before filing Vietnam’s complaint, our ministries carefully considered and analysed related issues. Judging that we’ve a good chance to prevail, we have taken action. If we succeed, Vietnamese enterprises will not have to pay anti-dumping duties and all the red tape that compliance entails.

VietNamNet/Tuoi Tre

Tags: Vietnam Seafood, Vietnam seafood exports, Vietnam sues USA