Businesses have successfully appealed 65 among 151 cases of trade safeguard investigation

(Daiphuc corp) - According to Ministry of Industry and Trade to the end September 2020, there have been nearly 200 cases in which goods exported from Vietnam subject to trade safeguard investigation with total export turnover of 12 billion USD. It is worthy to notice that the number of cases and amount of export turnover have swiftly increased from 16 cases subject to initiating the investigation in 2019 to 32 cases in nine beginning months 2020.
 According to statistic data, most assorted goods exported from VN subject to trade safeguard investigations are assorted goods with which VIETNAM has had production and export advantages such as assorted metal (aluminum, flat steel, steel pipe), fiber, seafood (shrimp, fish), plywood, construction material (brick, glass, sanitary equipment), chemical products, etc. Markets on which trade safeguard investigations with respect to Vietnam exported goods have been regularly conducted are America, India, Turkey, Canada and Australia. The number of cases subject to investigations conducted by these countries has been accounted for 62% cases of trade safeguard investigation of Vietnam exported goods. Especially, most recently, ASEAN countries have been very active in doing so with 38 cases, accounted for 20%. 

In such a circumstance, Ministry of Industry and Trade has done its best to support Vietnamese enterprises  as well as trade associations in coping with court cases initiated by foreign countries and territories such as to provide comprehensive supports for production and export sectors in coping with early warning trade safeguard investigations, to regularly supply and upgrade the list of assorted goods which would be subject to trade safeguard investigation  so that state relevant agencies will strengthen monitoring measures, and to encourage enterprises to be active in providing information in service of investigation, etc. 
 Thanks to the above efforts the appeal and support for production and export sectors in coping with trade safeguard investigation imposed by foreign countries and territories have obtained positive results. Particularly, Vietnam has successfully appealed (without being imposed additional tariff or trade safeguard remedies being ceased) in 65 among 151 cases, accounted for about 43%. Despite being imposed trade remedies by trading partners, a lot of assorted goods such as seafood, steel, wood, etc. exported by Vietnamese enterprises have been subject to tariff rate of 0% or very low so, enabling them to maintain or increase their export. More importantly, activities of providing information for and enhancing awareness of the business community and business associations which have been regularly, widely conducted have made their awareness of trade safeguard remedies positively changed, compared to the pass. 
According to Ministry of Industry and Trade, however, in a context where Covid-19 pandemic has negatively affected to the global economy, trade conflicts between economies have developed complicatedly, it is certain that the trend of applying production protection measures will be continuously widened over the world.  Therefore, recently, Ministry of Industry and Trade has submitted Prime Minister for issuing a project on strengthening State management in preventing against illegal avoidance of trade safeguard remedies and origin fraud and a Government’s Resolution on some urgent measures of strengthening State management in preventing origin fraud and illegal goods transport. The issuance of such legal documents will affirm the Vietnam’s determination in preventing, strictly handling acts of origin fraud, illegal avoidance of trade safeguard remedies on the one hand, orient production and export toward being stable and highly appreciated by our trading partners on the other hand.
To minimize negative effects of trade safeguard remedies, however, Vietnamese enterprises should develop export strategies toward diversifying export markets to avoid too hot growth on a single market and strengthening competition capacity based on the quality instead of price. Especially, each enterprise should self-equip basic legal knowledge of trade safeguard remedies to actively cope threads which would happen; at the same time, strictly comply with provisions on certificate of origin and totally not abet for acts of origin fraud and illegal avoidance of trade safeguard remedies.
Thanh Loan - Taxation magazine


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