Processing frozen shrimp for exports
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Accordingly, the two sides reached bilateral solutions to settle the two long-lasting World Trade Organisation (WTO) disputes over imports of Vietnamese shrimp to the US, in which Vietnam sues the US for violating WTO regulations when imposing antidumping duty on Vietnamese shrimp.
The anti-dumping duty order will remain in place for all other exporters of warm water shrimp from Vietnam. The signing of the agreement is the result of negotiation efforts and good will of both sides. Vietnam hailed the US’s enforcement of WTO ruling as demonstrating the country’s respect for its obligations at the WTO and its efforts to intensify multilateral trade as it has declared repeatedly.
Vietnam’s shrimp exports to the US in 2016 has been rising thanks to positive results from the ninth administrative review (POR9) for anti-dumping duties on Vietnamese frozen shrimp and the signing of the Trans-Pacific Partnership (TPP), according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
The average anti-dumping tariff rate levied on most Vietnamese frozen shrimp sold in the US market plummeted from 6.37 percent in the POR8 to 0.91 percent, as regulated in POR9. This has eased the tax burden on Vietnamese shrimp exporters.
In addition, the US’s growing demand for Vietnamese shrimp, spurred by the dollar’s rise, will increase the shipments. Rising demand has also resulted in vibrant shrimp retail promotion programmes in the US, creating opportunities for Vietnamese shrimp suppliers to boost exports to the country.
According to VASEP, the US remains Vietnam’s largest import market. However, last year Vietnamese shrimp exports to the American market stood at 657 million USD, dropping 38.3 percent from 2014 due to decreasing export prices, weak demand and fierce competition from foreign rivals.
It also reflects the US’s goodwill to strengthen its multi-faceted cooperation with Vietnam, especially in the context that the two countries participate in the Trans-Pacific Partnership (TPP) agreement.
