US consumers will suffer from anti-dumping tariffs

The US Department of Commerce (DOC)’s preliminary decision on anti-dumping tariffs on tra fish imported from Vietnam will cause problem for US consumers as well as the Vietnamese seafood sector.

The Vietnam Association of Seafood Exporters and Producers (VASEP) recently held a press briefing to oppose the DOC’s preliminary decision on duty rate of 100 percent on Vietnam tra fish.

VASEP said the US used raw material inputs from the Philippines and other countries different from Vietnam as a foundation to calculate dumping rates.

A VOV reporter interviewed VASEP vice chairman Nguyen Huu Dung on the issue.

VOV: Can you tell us about VASEP’s evaluation of the DOC’s decision to choose the Philippines to calculate raw material inputs for Vietnamese tra fish?

Mr Dung. Firstly, switching from Bangladesh to the Philippines in the sixth administrative review is completely groundless. Per capita income in the Philippines doubles that of Vietnam.

Secondly, catfish in the Philippines is small-scale production. The country produces only 12 tonnes of fish per year while Vietnam produces 1.2 million.

Thirdly, raw material inputs in the Philippines are totally different from Vietnam. Therefore, choosing the Philippines to replace Bangladesh as a model for calculation is impractical.

VOV: How does the DOC’s decision affect the Vietnamese seafood sector and US consumers?

Mr Dung: The US consumers will have to pay twice as much at US$7-8 per kilogram, instead of the US$3-4 currently. I don’t think they will have enough money to buy Vietnamese tra fish. Therefore, Vietnamese businesses won’t export enough products to the market. And the US processing industry will be adversely affected because they are using Vietnamese tra fish to process high quality products for their market.

VOV: How does VASEP react against the decision?

Mr Dung: The DOC gave the preliminary decision on September 15, and on the same day, VASEP sent an open letter to the Vietnamese Government, asking it to take essential legal action to request US agencies to undertake a comprehensive review of the harmful effects of DOC’s decision. Later, VASEP sent two Vietnamese businesses to the US to meet with Vietnamese and US agencies and lawyers to discuss the issue.

VASEP is working with its lawyers to prepare arguments and evidence to submit to the DOC in October and will attend hearing in November.

VOV: Thank you very much. – VOV

Tags: anti-dumping tariffs, Vietnam Seafood, Vietnam seafood exports