Trade remedy measures: Necessary policy tool and challenge
16:00 | 13/05/2020

VGP – Trade remedy measures launched in Viet Nam have helped protect employment for 120,000 laborers in all sectors, encouraging the development of domestic production and supporting the balance of international payments. 

Trade defense measures launched in Viet Nam help protect employment for 120,000 laborers in all sectors.

The reduction of the majority of import tariff lines to 0% when Viet Nam has joined 13 Free Trade Agreements (FTA) has made Viet Nam become one of the most open countries in the world. However, Viet Nam’s export items are facing trade defense measures from other nations with high frequency. 

Trade remedy measures: Necessary policy tool 

Viet Nam has established free trade relations with 55 trade partners through signing 14 FTAs and negotiating three other FTAs, including new FTAs such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Viet Nam Free Trade Agreement (EVFTA). 

According to the Ministry of Industry and Trade, the signing of these FTAs may put domestic production at risk of being unable to adapt to complex or even unfair competitions. 

The laws on trade defense in Viet Nam were formulated 15 years ago when Viet Nam officially joined the World Trade Organization. However, within the recent five years, Viet Nam has actually and actively launched legal tools on trade defense which are allowed by the WTO and the FTAs. 

Regarding the statistics of the Ministry of Industry and Trade, since 2013, the ministry has investigated 16 trade defense cases, including 10 related to anti-dumping price and six self-defense investigations. 

The ministry has decided to apply 13 trade defense measures for import goods in line with the international laws, regulations and commitments after launching objective and transparent investigations. These import goods applied trade defense measures are iron and steel, fertilizer, plastic, garment and food, which are playing crucial roles in each country’s economy. 

Trade remedy measures protects employment for 120,000 laborers

Head of the Trade Remedies Authority, under the Ministry of Industry and Trade Le Trieu Dung said that trade remedy measures have been recognized by all nations around the world as an necessary tool to protect domestic production. 

In Viet Nam, trade remedy measures have helped protect employment for 120,000 laborers in all sectors. 

Sectors subject to trade defense measures are estimated to contribute 6.3% of the nation’s GDP while trade  remedy measures have also made larger contributions to the State budget. 

The trade remedy measures have stabilized the prices of output materials for some domestic production, he said. 

The ministry has kept a close eye on price fluctuations and import situations as well as periodically reviewed and adjusted trade remedy measures in line with practices.  

Prompt trade remedy measures applied by the Ministry of Industry and Trade have prevented negative impacts of massive import goods, sustainably ensure domestic production and improve competitiveness, asserted Dung. 

In the upcoming time, the ministry will continue protecting legitimate rights of domestic production sectors by investing and applying trade remedy measures transparently in accordance with the international laws and commitments. 

The WTO permits members to impose trade remedies or trade remedy measures against imports to protect their domestic industries from unfair practices such as dumping and subsidies, or to cope with a sudden surge of foreign goods.

By Thuy Dung 

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