Notes on trade defense in the EVFTA and new generation FTAs

On the morning of September 17, the Ministry of Industry and Trade held the opening ceremony of the Training Course to build a team of experts on the EVFTA and new generation FTAs ​​for management agencies, localities, enterprises, and industry associations, thereby supporting the maximum utilization of benefits from the implementation of FTAs.

The training course takes place over 5 days, from September 17-21, 2024, with the participation of 50 trainees from management agencies, enterprises, industry associations, institutes, schools, and centers in Hanoi, Dien Bien, Nam Dinh, Quang Tri, Thai Nguyen, Yen Bai ...

Dr. Nguyen Thien Nam - Principal of the Central School for Training and Fostering of Industry and Trade Officials said that in 2024, the School was assigned by the Ministry of Industry and Trade to "Organize training to become new generation FTA experts (basic and advanced courses)" with 9 basic courses and 3 advanced courses for State management agencies, Institutes, Schools and enterprises, Industry Associations across the country.

This is a training program with the goal of building a team of experts on new generation FTAs ​​for localities and businesses. From there, it helps businesses maximize the benefits from implementing commitments in new generation FTAs ​​in the context of increasingly deep and wide economic integration.

According to the leader of the Multilateral Trade Policy Department (Ministry of Industry and Trade), through the training courses, trainees will be updated with information and better understand the basic and key contents of the EVFTA Agreement and new-generation FTAs, including: Trade defense; major policies and orientations of Vietnam on international economic integration, the situation of negotiations, signing and implementation of new-generation FTAs; trade promotion to take advantage of the EVFTA Agreement and new-generation FTAs; commitments and regulations on intellectual property in the EVFTA Agreement and new-generation FTAs; labor issues in the EVFTA Agreement and new-generation FTAs, etc.

The Ministry of Industry and Trade has organized the opening ceremony of the Training Course to build a team of experts on the EVFTA Agreement and new generation FTA Agreements for management agencies, localities, enterprises, and industry associations.

In the training course in Hanoi, “Trade defense in EVFTA and new generation FTAs” was the first topic of the training course, presented by reporter Nguyen Viet Ha from the Department of Trade Defense (Ministry of Industry and Trade).

The reporter's sharing provided specific information on regulations on trade defense in EVFTA and new generation FTAs ​​for export products; skills to analyze and assess risks of trade defense for export products; ways to handle risks of trade defense; ways to solve problems when export products are subject to trade defense measures; common problems and ways to handle them...

Provisions on trade defense in the EVFTA are specifically provided in Chapter 3 of this Agreement.

Trade Remedies Law in Vietnam is stipulated in the Law on Foreign Trade Management 2017 (Chapter IV on Trade Remedies, Articles 67-99); Decree 10/2018/ND-CP detailing a number of articles of the Law on Foreign Trade Management; Circular No. 42/2023/TT-BCT of the Ministry of Industry and Trade detailing a number of contents on Trade Remedies; Circulars guiding the implementation of Trade Remedies in FTA Agreements (CPTPP, RCEP, EVFTA and UKVFTA).

A general assessment of trade defense investigations against Vietnam in recent years shows that the number of investigations has increased rapidly, especially anti-avoidance. The period 2001-1011 was 50 cases, but the period 10 years later (2012-2022) was 172 cases, an increase of nearly 3.5 times. Along with that, the investigation market is increasingly expanding, the scope of investigated products is increasingly diverse; the trend of stricter investigations; the scope of investigations is increasingly expanding; the level of trade defense tax may be pushed up due to market economy issues...

The reporter said that the provisions on trade defense in the EVFTA are specifically stipulated in Chapter 3 of the Agreement, with provisions on anti-dumping and countervailing duties; global safeguard measures; and bilateral safeguard provisions.

The Ministry of Industry and Trade is implementing many activities to support businesses to make good use of incentives from EVFTA as well as new generation FTAs.

The representative of the Trade Defense Department pointed out some differences in the provisions on trade defense in the EVFTA and Vietnamese law. Specifically: Adding detailed commitments on ensuring transparency (in Article 3.2 and Article 3.7); stipulating the principle of applying lower tax rates, i.e. anti-dumping or anti-subsidy tax is only at a level sufficient to eliminate damage (in Article 3.4); stipulating the consideration of public interests when deciding to apply anti-dumping or anti-subsidy measures (Article 3.3); stipulating transitional safeguard measures with an applicable transition period of 10 years from the date the Agreement comes into effect.

The reporter said that the Ministry of Industry and Trade is implementing many activities to support businesses such as: Early warning of the risk of being investigated for trade defense so that businesses can proactively develop a handling plan. Discussing with associations and businesses to provide information, update the case's developments and agree on a response plan. Providing legal advice, investigation procedures, regulations/investigation practices of the country initiating the lawsuit and making recommendations and specific handling directions. Discussing, consulting, giving opinions on legal and practical aspects with foreign investigation agencies, requesting compliance with WTO regulations. Considering initiating a lawsuit against foreign investigation agencies' trade defense measures if there are signs of violating WTO regulations...

According to the Reporter, the Department of Trade Defense has been monitoring export fluctuations of nearly 40 items and periodically issues a warning list of about 10 items (there have been investigated products such as plywood, foam mattresses, car tires, copper pipes, honey, anti-corrosion steel, ceramic tiles, original cabinets, solar panels, staples, etc.).

In order to effectively handle trade defense measures, the representative of the Trade Defense Department recommends that associations and businesses pay attention to the following 7 issues:

Firstly, consider trade defense risks to develop reasonable production and export plans;

Second, increase competition by quality, limit competition by price;

Third, perfect the traceability system and accounting system;

Fourth, research and understand the principles, processes and procedures of Trade Defense investigations. Monitor warning information from the Ministry of Industry and Trade. Prepare resources to appeal lawsuits in case of arising cases;

Fifth, develop a clear and unified appeal strategy from the beginning of the case;

Sixth, fully cooperate with the Investigation Agency and closely coordinate with the Department of Trade Defense and the Association in handling the case;

Seventh, absolutely do not participate in or assist in acts of origin fraud or illegal transportation.

Regarding the EVFTA Agreement, the training course to become an expert on the EVFTA Agreement and new generation FTAs ​​(basic course) of the Ministry of Industry and Trade will cover other issues such as: Trade promotion; commitments and regulations on intellectual property in the EVFTA; labor issues in the EVFTA Agreement...

Previously, on September 16, 2024, in Hai Phong City, the Central School for Training and Fostering of Industry and Trade Officials also held the opening ceremony of the Training Course to become an expert on the EVFTA Agreement and new generation FTAs ​​(basic course).

The training course attracted the participation of nearly 80 trainees from management agencies, businesses and industry associations in Hai Phong city and neighboring localities.

Source: https://congthuong.vn/nhung-luu-y-ve-phong-ve-thuong-mai-trong-hiep-dinh-evfta-va-cac-fta-the-he-moi-346639.html