Turn on the "prevention is better than cure" mechanism against the "storm" of trade defense from the US market

A series of barriers

Citing the latest data from the United States International Trade Commission (USITC), the Vietnam Trade Office in the United States said that as of July 2024, trade turnover between Vietnam and the United States reached about 83 billion USD, an increase of 24% over the same period in 2023.

Of which, Vietnam exported 76 billion USD, up 25% over the same period in 2023; imported about 7.3 billion USD, up 30% over the same period in 2023.

In the first 7 months of 2024, Vietnamese goods exported to the US market were mainly electrical machinery and equipment; mechanical equipment; furniture; footwear; clothing; sports equipment; iron and steel; wood and wood products; coffee; fruit...

In the opposite direction, Vietnam imports from the United States the following products: cotton and cotton products; animal feed; mechanical machinery and equipment; wood and wood products; plastic and plastic products; fruits; medical equipment...

Speaking to the Industry and Trade Newspaper, Mr. Do Ngoc Hung - Commercial Counselor, Head of the Vietnam Trade Office in the United States, acknowledged that the United States has been Vietnam's largest export market for many years, with export growth always reaching the top. " Vietnamese goods are increasingly popular in the US market due to their continuously improved quality, updated trends and competitive prices, " Mr. Do Ngoc Hung emphasized.

Not only that, changes in the supply chain as well as the wave of investment shifts have contributed to enhancing the production capacity of Vietnamese enterprises. This has created opportunities and room for Vietnamese goods to increase exports to the world in general and the US market in particular.

Since the beginning of 2024, the United States has initiated 7 trade defense investigations against Vietnamese goods. Illustrative photo

However, according to the Trade Office, Vietnam's exports to the United States are currently facing many barriers, including trade defense measures through anti-dumping and anti-subsidy investigations, evasion of trade defense tariffs, and transshipment of goods.

“The United States is the market with the most trade defense investigations into Vietnamese exports. The total number of trade defense cases investigated by the United States to date is 66, the main products are steel, wood, fiber, agricultural products including shrimp, pangasius, honey” - Mr. Do Ngoc Hung informed and added that from the beginning of 2024 until now, the United States has initiated 7 trade defense investigations against Vietnamese goods including: solar panels, CORE steel, fiber, paper plates, fiber... not to mention annual reviews of about 20 cases.

According to Trade Counselor Do Ngoc Hung, the United States is the WTO partner that investigates the most subsidies with 12 cases (accounting for 43%) of the total number of subsidy cases against Vietnam's exports. Although the United States is the leading country in WTO for subsidies, it is also the country that is investigated for anti-subsidy by other countries such as the EU, Japan, China, etc.

Commenting on the challenges in trade defense cases, Mr. Do Ngoc Hung said that being investigated for trade defense in general and subsidies in particular is a risk that always exists with the increase in export turnover. And being sued is not only in the United States but also in many other countries when Vietnam's imported goods account for a large proportion in the import structure of partners (EU, Australia, Canada). However, in recent times, a number of Vietnamese enterprises and industries have gained a lot of experience in dealing with the case.

Be ready to respond

In recent times, contributing to helping businesses effectively respond to trade defense lawsuits from the United States, the Trade Office has closely coordinated with the Trade Defense Department, the European - American Market Department as well as Associations: Steel Association, Honey Association, Wood Association and Vietnamese export enterprises... to work with the United States in trade defense lawsuits to express opinions and protect the legitimate interests of businesses.

Along with that, report to the Embassy, ​​propose exchanges at the embassy leadership level when working with partners to increase impact and support response to the incident.

In addition, the Trade Office also constantly explores, exchanges, and meets with partners in the United States to find information, analyze import and export data to make recommendations and warn businesses about some products such as steel, wood, etc. As shown in the above data, the rapid growth of products in recent times will be a potential subject in trade defense lawsuits.

In recent subsidy cases, based on the request of domestic exporting enterprises, the Trade Office has represented the Government in consulting with the US Government to provide viewpoints and arguments on the subsidy allegations of the plaintiffs with the aim of minimizing the programs investigated by the US when initiated. Thereby, reducing the burden of proof for enterprises as well as the Vietnamese Government in subsidy cases.

When exporting, businesses should learn in advance about US laws and investigation practices. Illustrative photo

Currently, the US has been strengthening its trade defense tools by issuing a series of new regulations, making the case very complicated, consuming a lot of resources and not beneficial to export enterprises in the coming time. In addition, the US presidential election is approaching, the parties are actively attracting voters by supporting the domestic manufacturing industry, which also means that the number of cases will increase in the coming time.

Therefore, it is important that businesses are ready to respond and handle incidents when they occur to ensure full cooperation, provide information and documents to the investigating agency to achieve the best possible results. " The first recommendation in the US market is that Vietnamese businesses fully cooperate with the US Department of Commerce (subsidy investigation) and the US International Trade Commission (damage investigation)" - the Trade Office recommended and emphasized that through coordination, many domestic businesses have not been subject to subsidy tax/the lowest tax rate among the countries under investigation, thereby creating competitive advantages and increasing market share.

Giving specific recommendations to businesses, Mr. Do Ngoc Hung recommended that when exporting, businesses should learn in advance about the legal regulations and investigation practices of the United States through seminars and training sessions of the Ministry of Industry and Trade to be able to visualize the investigation process, procedures, and requirements of the US Department of Commerce.

With the goal of prevention, in recent times, the Vietnam Trade Office in the United States has always proactively contacted, met, exchanged, and sought information from US lawyers, authorities, and associations to be able to evaluate, analyze, and give warnings to Vietnamese businesses.

In addition, the Trade Office is also ready to support information provision, coordinate with domestic agencies to work with the US side in trade defense lawsuits in general and subsidies in particular and commits to always accompany businesses/associations in the coming time.

Source: https://congthuong.vn/bat-co-che-phong-hon-chong-truoc-bao-phong-ve-thuong-mai-tu-thi-truong-hoa-ky-349366.html