Firms must be aware of increasing trends of investigations for trade remedy evasion: ministry

Wednesday, Jun 03, 2020 15:39

Steel is among products facing the risk of being investigated for trade remedy evasion. — Photo baochinhphu.vn

The Ministry of Industry and Trade has urged enterprises to be aware of and not participate in origin fraud, illegal transshipment and evasion of trade remedies to avoid the risks of being sued.

Enterprises played decisive roles in minimising the risks, the ministry said.

The fact showed that if origin fraud, illegal transshipment and evasion of trade remedies were detected, the importing country could impose heavy sanctions, the ministry said, adding that in many cases, enterprises could lose the entire export market involved.

The ministry said that some producers, when facing trade defence measures, shifted their products out of the countries subjected to the measures and Viet Nam was among destinations, given the country’s advantageous policies for foreign investors.

With rapid increases in exports of some products, Viet Nam was facing higher risks of investigations and being imposed trade defence measures, the ministry said.

The ministry said that origin fraud, illegal transshipment and evasion of trade remedies tended to increase in the context of the US – China trade war, and that Viet Nam was participating in a number of new-generation free trade agreements, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU – Viet Nam FTA (EVFTA).

Statistics showed that seven cases of investigations for evasion of trade remedies were initiated during the period from 2017 to the end of the first quarter of this year, in comparison with 15 cases in 17 years fro 2000 to 2016. Of all, ten cases were initiated by the US.

If Viet Nam did not have measures to prevent origin fraud, illegal transshipment and evasion of trade remedies, not only would certain industries be negatively affected but also the competitiveness of the entire economy, especially when Viet Nam was joining FTAs with strict origin rules, the ministry warned.

The ministry said that it would focus on enhancing the trade defence capacity for local industries this year, especially improving awareness of small- and medium-sized enterprises about trade defence instruments, to protect their legitimate rights and improve the efficiency of the international integration process. — VNS

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