A female employee works at Ha Nam Textile Co. Ltd. in Ha Nam province. Experts call for the effective use of trade remedies to protect domestic production as Vietnam joins more free trade agreements.(Photo: VNA) Hanoi (VNA) – Trade remedies should be utilised more and in a more effective way to ensure faircompetition and protect domestic production in the context of Vietnam’s deeperintegration into the global economy through joining more free trade agreements (FTAs), according to experts.
Traderemedies are measures are allowed by the World Trade Organisation (WTO) toprevent unfair competition such as dumping and subsidies for imported goods.These also prevent a sudden surge of imported goods which has thepotential to cause serious damage to domestic manufacturing industries.
Thedemand for the use of trade remedy tools will also be higher along withthe development of global trade. Trade remedies have been recognised by many countriesas a necessary tool to stabilise domestic production and protect employmentfor domestic labourers.
Vietnamhas so far joined 15 Free Trade Agreements (FTA) and is negotiating two otherFTAs. Among the 14 FTAs that have come into force, the Comprehensive andProgressive Agreement for Trans-Pacific Partnership (CPTPP), theVietnam-European Union Free Trade Agreement (EVFTA) and the UK-Vietnam FreeTrade Agreement (UKVFTA) are three new generation FTAs with comprehensivecommitments in many economic and trade fields.
Thesigning of these agreements helps expand the market, attract investment, andbring competitive advantages to Vietnam's exports, but also puts domesticproduction at risks of fraud of origin, illegal transfer of goods and evasion of trade remedies tax.
To deal with the issues, the Government of Vietnam and the Ministry of Industryand Trade have developed many projects and programmes to improve the capacityof Vietnamese businesses relating to using trade remedies tools.
Specifically,the Prime Minister approved two projects on "Strengthening state managementon combating evasion of trade remedies and origin fraud", and "Buildingand effectively operating an early warning system on trade remedy" with theaim of preventing and responding to foreign trade remedy lawsuits, towardssustainable exports.
Aproject on enhancing trade remedy capacity in the context of Vietnam’sparticipation in new generation FTAs was also ratified. It creates acomprehensive framework to enhance the effectiveness of trade remedies and improve knowledge and capacityof enterprises on trade remedies tools.
Theoverall goal of the project is to perfect the legal system on trade remedies toensure their consistency with international commitments, new generation FTAs,and the interests of the economy in the process of international integration aswell as to effectively use trade remedies to protect domestic production and benefits of consumers.
The project will focus on reviewing legal documents inthe field of trade remedies in the 2022-2025 period, thereby proposing amendingthe Law on Foreign Trade Management or developing a Law on Trade Remedies.
🅰 Currently,the Ministry of Industry and Trade is actively coordinating with relevantministries and agencies to develop a plan of action to carry out the project,ensuring the full implementation of the set goals, and protecting legitimaterights and interests of Vietnamese manufacturing industries and enterprises inthe process of participating in FTAs./.
