Protectionism hurts developing world, Vietnam says in UN appeal
Developing countries are unfairly targeted by anti-dumping cases, Vietnam told the United Nations, appealing for a fairer global trading system that would include better market access for agricultural and seafood products.
In the past three years, Vietnamese exporters of catfish and shrimp have been hit by U.S. anti-dumping petitions, while those who sell bicycles and leather shoes have faced European anti- dumping petitions. Vietnamese companies have denied selling goods below cost, saying the prices of the Southeast Asian nation's products benefit from low labor costs.
Vietnam's appeal at the UN comes against a backdrop of complaints by some developing countries against what emerging markets argue is a global trading system skewed to protect the interests of richer nations. Last month, trade ministers of 20 developing countries, including Brazil, China and India, urged wealthy governments to end farm subsidies.
``There is a serious deficit of democracy at the heart of the multilateral trading system,'' Nguyen Tat Thanh, Vietnam's deputy permanent representative to the UN, said in comments prepared for delivery to a General Assembly committee, according to a copy received last night by Bloomberg News.
``Many developing countries have become victims of numerous unjustified protectionist measures,'' Thanh said in the Oct. 3 speech. ``We have been witnessing the application of these under the cloak of anti-dumping measures.''
Tariffs ranging from 16 percent to 35 percent were set in July on Vietnamese exports of bicycles to the European Union, after an anti-dumping petition was filed in 2004.
Leather Shoes
An anti-dumping petition filed in July by the European Confederation of the Footwear Industry against Vietnamese leather shoe exporters has discouraged European importers from signing contracts and caused production halts and job cuts in Vietnam, the Vietnam News reported today. European shoe importers are moving orders to Thailand, the report said.
Exports of the categories of Vietnamese frozen catfish fillets covered by a U.S. industry anti-dumping petition, which resulted in tariffs being applied in 2003, fell 21 percent that year. Duties imposed in 2004 to the bulk of Vietnamese shrimp exports to the U.S. after a similar petition led to a 36 percent drop in shipments of the targeted shrimp.
Farm Products
Trade barriers also prevent poor nations from tapping the full potential of their agricultural and fisheries exports, Thanh said. Three of Vietnam's top 10 exports -- rice at no. 5, coffee at no. 8 and rubber at no. 9 -- are agricultural goods, while seafood places fourth. Shoes are Vietnam's third-biggest export.
Vietnam hopes that a ministerial meeting of the World Trade Organization to be held in Hong Kong in December ``will lead to a more open, predictable and equitable multilateral trading system,'' Thanh said.
Vietnam has previously cited the Hong Kong WTO ministerial meeting as a target time for entrance to the global trading club.
At a meeting last month of the working party on Vietnam's WTO accession bid, ``Vietnam did not mention its original hope of reaching agreement by the ministerial conference in December, simply stating that it is eager to end the negotiation soon,'' according to a summary of the talks posted on the WTO's Web site. ``Vietnam's membership negotiations have taken a substantial step forward. Nevertheless, a lot remains to be done.''
The U.S. has been pressing Vietnam to further open industries such as banking and insurance and to give foreign companies in the country improved distribution rights, a report in the Oct. 4 online edition of Thanh Nien newspaper said.
While Vietnam has reached accords on the terms of its WTO accession with China, Japan and the EU, according to Vice Minister of Trade Luong Van Tu, it hasn't sealed a deal with the U.S.
Tu played the developing-nation card in a speech to members of the working committee on Vietnam's WTO accession bid, saying Vietnam has already committed to opening its markets more than most new members.
``We therefore call upon our remaining partners to show a viewpoint and approach which is reasonable and suitable to such a low level of development as of Vietnam,'' said Tu, in comments made in Geneva on Sept. 15, according to the WTO Web site.
By Jason Folkmanis - Bloomberg - October 6, 2005.
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