Catfish skirmish
Score one for American protectionism. On January 27,
the United States Department of Commerce announced
a preliminary decision to impose tariffs of up to 64% on
frozen catfish imported from Vietnam. The decision
supports American catfish producers who have long
argued that Vietnamese exporters dump catfish on the
American market below cost. But Vietnamese officials
and catfish exporters said the ruling ran counter to
increasing liberalization of trade between the countries
fostered by a year-old U.S.-Vietnam bilateral trade
agreement.
Although the U.S. ambassador to Vietnam, Raymond
Burghardt, quipped in New York that bilateral relations
had "risen above catfish," the ruling was no laughing
matter. The Vietnam Association of Seafood Exporters
and Processors said the ruling would be harmful to
"thousands of farmers and poor people in the Mekong
Delta." Lamented Tony Foster, chairman of the
American Chamber of Commerce in Hanoi: "It is rather
unfortunate that these narrow lobbies manage to
subvert the greater national interest."
Pending a final decision in June, U.S. importers must
post a bond when receiving catfish shipments. Yet
some market analysts believe Vietnamese catfish can
stay afloat despite the tariffs. "There's plenty of room
for a higher price, but it takes marketing," says Paul
Sawyer, manager of a Ho Chi Minh City-based firm
that represents U.S. seafood buyers.
Next on the trade agenda between the countries: They
will discuss textile and garment quotas on February 19
in Hanoi.
By Margot Cohen - The Far Eastern Economic Review - January 30, 2003.
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