Econ
Vietnam’s steel producers proposed to take US high tariff decision to WTO
The Vietnam Steel Association (VSA) has asked relevant ministries and agencies to take more measures to support local firms against the United States (US)’s recent steel tariff decision.
In the proposal sent to the Government Office, the Ministry of Industry and Trade (MoIT), and the Ministry of Foreign Affairs (MoFA) recently, VSA chairman Ho Nghia Dung asked State agencies to help local steel enterprises prevent losses caused by a 25 percent tariff on steel imposed by the US.
VSA proposed that MoIT and MoFA work with related agencies from the US to express the official stance of Vietnam towards the steel tariff, and launch a complaint to the World Trade Organization (WTO) as other countries have done.
The petition also requests the ministries and agencies ask the US to remove its planned tariff on Vietnam’s steel on the basis of mutual security relation and multifaceted Partnership and Co-operation Agreement (PCA) that was announced during the official Vietnam visit by US President Donald Trump in end-2017.
In case the US keeps slapping the tariff, Vietnam should suggest the partner consider a tax exemption for a special type of Vietnam steel exported stateside. According to the petition, the Government should rethink preferential tariffs on imports from the US as a countermeasure.
VSA has gathered voices from local enterprises, and hired lawyers in the US after America initiated its investigation to impose tariffs on steel and aluminum. Upon widespread protests, the US has gradually excluded many countries from the tariffs, saying such countries are its allies, which causes unfair competition for other steel exporting nations, including Vietnam.
VSA in the petition also stresses that the steel trade between Vietnam and the US is fairly balanced, or even in favor of the US. Between 2012 and 2017, Vietnam exported some 2.48 million tons of steel to the US and imported around 2.52 million tons from this country. Thus, the import-export balance of trade between the two countries is equivalent.
Last year, there was 567,000 tons of Vietnam steel exported to the US, but the former also imported 632,000 tons of steel from the latter. In addition, the amount of Vietnam steel bound for the US accounts for a small 1.66 percent of America’s total steel imports.
Most of Vietnam steel is used for civil construction. That the US government said steel may threaten its security is unreasonable.
The tariff of 25 percent will adversely affect Vietnam’s steel industry in terms of both export and production, and even causes the country to lose its market in the US, as Vietnam steel is not able to compete with those from other countries that enjoy tax exemptions.
If Vietnam’s steel export to the US is reduced, Vietnamese steel companies will face many difficulties.
According to VSA, Vietnam started exporting steel to the US some two-three years ago when the steel maker Hoa Sen Group sent the first batch of 20,000 tons of steel products. Vietnamese companies saw potential in the US market so they spent a lot of money in building facilities and advanced technologies to produce steel for exports.
The US’ import tax on steel has been imposed at a time when the Vietnamese businesses’ investment has not been refunded, causing losses and unemployment.
On March 8, President Trump signed a decree imposing a tax of 25 percent on imported steel and 10 percent on aluminum, with the exception of Mexico and Canada. According to VSA, the decision is contrary to the goals and intentions of the WTO, of which the United States is a member, and is contrary to international practices.
Vietnamese steel companies will face many difficulties with the high tariff
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The petition also requests the ministries and agencies ask the US to remove its planned tariff on Vietnam’s steel on the basis of mutual security relation and multifaceted Partnership and Co-operation Agreement (PCA) that was announced during the official Vietnam visit by US President Donald Trump in end-2017.
In case the US keeps slapping the tariff, Vietnam should suggest the partner consider a tax exemption for a special type of Vietnam steel exported stateside. According to the petition, the Government should rethink preferential tariffs on imports from the US as a countermeasure.
VSA has gathered voices from local enterprises, and hired lawyers in the US after America initiated its investigation to impose tariffs on steel and aluminum. Upon widespread protests, the US has gradually excluded many countries from the tariffs, saying such countries are its allies, which causes unfair competition for other steel exporting nations, including Vietnam.
VSA in the petition also stresses that the steel trade between Vietnam and the US is fairly balanced, or even in favor of the US. Between 2012 and 2017, Vietnam exported some 2.48 million tons of steel to the US and imported around 2.52 million tons from this country. Thus, the import-export balance of trade between the two countries is equivalent.
Last year, there was 567,000 tons of Vietnam steel exported to the US, but the former also imported 632,000 tons of steel from the latter. In addition, the amount of Vietnam steel bound for the US accounts for a small 1.66 percent of America’s total steel imports.
Most of Vietnam steel is used for civil construction. That the US government said steel may threaten its security is unreasonable.
The tariff of 25 percent will adversely affect Vietnam’s steel industry in terms of both export and production, and even causes the country to lose its market in the US, as Vietnam steel is not able to compete with those from other countries that enjoy tax exemptions.
If Vietnam’s steel export to the US is reduced, Vietnamese steel companies will face many difficulties.
According to VSA, Vietnam started exporting steel to the US some two-three years ago when the steel maker Hoa Sen Group sent the first batch of 20,000 tons of steel products. Vietnamese companies saw potential in the US market so they spent a lot of money in building facilities and advanced technologies to produce steel for exports.
The US’ import tax on steel has been imposed at a time when the Vietnamese businesses’ investment has not been refunded, causing losses and unemployment.
On March 8, President Trump signed a decree imposing a tax of 25 percent on imported steel and 10 percent on aluminum, with the exception of Mexico and Canada. According to VSA, the decision is contrary to the goals and intentions of the WTO, of which the United States is a member, and is contrary to international practices.
