Antidumping issues in world trade organization and vietnamese law and practice

HANOI UNIVERSITY OF LAW LUND UNIVERSITY FACULTY OF LAW ANTIDUMPING ISSUES IN WORLD TRADE ORGANIZATION AND VIETNAMESE LAW AND PRACTICE SPECIALTY: INTERNATIONAL AND COMPARATIVE LAW... I

hanoi l ;:?y o r law iuijd univet^ t

HANOI UNIVERSITY OF LAW LUND UNIVERSITY

FACULTY OF LAW

ANTIDUMPING ISSUES

IN WORLD TRADE ORGANIZATION

AND VIETNAMESE LAW AND PRACTICE

SPECIALTY: INTERNATIONAL AND COMPARATIVE LAW

1 1 - C o m m it te e o n A n t i - D u m p in g P ra c tic e s 2 8

1 2 - C o n s u lt a t io n a n d D is p u te S e ttle m e n t 2 8

C H A PT E R II A N T I-D U M P IN G LA W AND PR A C T IC E IN V IE T N A M 30

I- S ocio-econom ic and political background in V ietnam 30

3.1- The real situation o f Investigation and application o f anti- 3 9

dumping measures in Vietnam.

3.2- The real situation o f imports and exports o f Vietnam being 3 9

investigated and applied anti-dumping measures in foreign

markets

C H A PT E R III- R E C O M M E N D A T IO N S A ND SO L U T IO N S TO P E R F E C T 42

O N T H E A N T I-D U M P IN G LA W IN V IE T N A M

I- Point o f view on an ti-d u m p in g law perfecting d irection 42

II- Som e recom m en d ation s to perfect the anti-d u m pin g law 43

I go my gratitude to lecturer, lawyer Nguyen Van Thao and the Economic Law Faculty o f Hanoi University o f Business and Management for encouragement and support.

I would like to extend my acknowledgement to sirs and madams working at Ministry of Justice, Ministry o f Trade, National A ssem bly’s Office, and Governmental O ffice for enthusiastic assistance for my completion o f this thesis.

Finally, I should give my thanks to SIDA project, colleagues, friends and family for their understanding and both material and spiritual support along my study.

U n d e r th e in c r e a s in g ly s tr o n g e r g lo b a liz a t io n , V ie t n a m has b e e n a c t iv e ly p r o m o tin g its

s c h o la rs a p p r o a c h in g t h e o r ie s a n d p r a c tic e s r e la t in g to a n t i- d u m p in g as “Scientific bases

P o lic y - M in i s t r y o f T r a d e ; th e b o o k “D u m pin g a n d A n ti-d u m p in g m easures a n d

W T O m e m b e r c o u n tr ie s

C hapter 1: Som e th eories o f du m pin g and anti-du m pin g in G A T T /W T O

C hapter 2: A n ti-d u m p in g L aw and Practice in V ietnam

C hapter 3: R ecom m en d ation s and R esolutions to perfect on anti-d u m p in g law in

V ietnam

CHAPTER I SOME THEORIES OF DUMPING AND ANTI-DUMPING IN GATT/WTO

to d is t in g u is h w it h d u m p in g in d o m e s tic tra d e ( A r t i c l e 2 o f A D A ) T h is a c tio n p r e v e n te d

to e n s u re a h e a lth y tra d e a n d p r o t e c tio n f o r d o m e s tic p r o d u c e rs

' O x f o r d A d v a n c e d G enie, O x f o r d U n iv e r s ity Pre ss 2 000

8 A n ti - D u m p i n g law and necess ities, V i e tn a m Industrial and C o m m e r c ia l C h a m b e r , p 32

E C f u r t h e r s ta te d :

“Thank to the high profits gained in their protective home market, Japan exporters can be afford to invest in marketing and commercial promotions in the Commodity By this practice, they imposed influences of their labels on consumers and increased the quantity

of sales so that they have become the market leader in all member countries but one In addition, they reinforce the leading position by advantages of price resulted from the increase of the dumped ”

10 See footnote No 1

" Lawsuit: A u d io tapes in c a s s e tte s (Japan, S K o re a and H ong K o n g ), O J 1990 L 313/5.

A f t e r c o n s id e r a t io n a n d a n a ly s is , E C c o n c lu d e d :

"The EC industry has been increasingly considered as "bottom” producer, has no serious chances to compete either with the dumped imports from Japan on labels, images, promotion, design or on price of dumped imports from Hong Kong and S Korea”'2

2 Norm al V alue

A r t ic le V I 1 o f th e G A T T 1 9 4 7 is r e g u la te d : "products of one country are introduced into the commerce of another country at less than the normal value of the products, is to be condemned if it causes or threatens material injury to an established industry in the territory of a contracting party or materially retards the establishment of a domestic industry"

c a lc u la te d o n th e b a s e o f c o m p a r is o n a m o n g th e export price to th e normal price th a t

c a lc u la te d b y value in a third country.

For exam ple: I n th e p r o c e e d in g A n t id u m p in g D u t y I n v e s t ig a t io n o f C e r t a in F ro z e n F is h

F ille t s f r o m th e S o c ia lis t R e p u b lic o f V i e t n a m ^ , th e D e p a r tm e n t o f C o m m e r c e , th e U n it e d

S ta te s c o n c lu d e d th a t V ie t n a m w a s n o n - m a r k e te d e c o n o m y , th e n o r m a l v a lu e o f c a t fis h

p r o d u c ts w a s n o t d e t e r m in e d b e c a u s e th e p r ic e w a s c o n t r o lle d b y th e G o v e r n m e n t b u t n o t

b y th e la w o f d e m a n d a n d s u p p ly in m a r k e t T h is s a le d i d n ’ t r e f le c t th e r e a l v a lu e o f th e

c o m m o d it y , o r m o r e b r o a d ly , “market forces in Vietnam are not yet sufficiently developed

to permit the use of prices and costs in that country for purposes of the purposes o the Department’s dumping analysis etc". S o , th e D e p a r tm e n t t o o k I n d ia as th e r e p la c in g

C ase I: E xport Sales to u n rela ted im porters

e v a s io n

Example 1: I n th e “ B ic y c le s ” 18 c a s e , th e In d o n e s ia n f i r m a n d M a la y s ia n f ir m s o ld b ik e s to

E C v ia t r a d in g c o m p a n ie s o u ts id e I n d o n e s ia a n d M a la y s ia b u t in J a p a n

Example 2: T h e E U p u t a n t i- d u m p in g ta x o n th e m e ta l r in g s im p o r t e d f r o m C h in a b u t fin is h e d in V ie t n a m , th e n r e - e x p o r te d to E U E U ju d g e d th a t th e a c tio n o f C h in e s e f ir m

17 S e a m le ss p ipes a n d T u b e s ( R ussia, t h e C z e c h R epublic, R o m a n ia a n d t h e S lovak R e p u b lic ) O J 1 997 L 141/36 ( p r o v is io r a l) , OJ 1997 L 322/1 (d efin itiv e).

IS B icycles (I n d o n e sia , M a l a y s i a an d T h a ila n d ), O J 1995 L 248/1 2 (p r o v isio n a l), O J 1996 L91/1 (definitive).

q u e s tio n a t d u m p e d p r ic e s so th a t th e a u th o r itie s a re s a tis fie d th a t th e in ju r io u s e f fe c t o f

12 C onsultations and D ispute Settlem ent

CHAPTER II ANTI-DUMPING LAW AND PRACTICE IN VIETNAM

p o lic y o f e c o n o m ic in t e g r a t io n a n d d e v e lo p m e n t s u ita b le w i t h th e g lo b a liz a t io n te n d e n c y

w it h th e o b je c t iv e “taking initiatives of integration into the regional and international economy in the sprit of developing maximum internal strengths, improving international cooperation, ensuring independence and self-control and socialist orientation” w a s

r e a f fir m e d in th e I X P a r ty C o n g r e s s R e s o lu t io n N o 0 7 o f th e P o lit b u r o o n th e R e g io n a l

a n d I n te r n a tio n a l e c o n o m ic I n t e g r a t io n a ls o s e t o u t th e o b je c t iv e “taking initiatives in integrating the international economy in order to expanse markets, mobilize capital, technology and management knowledge to speed up the socialist oriented modernization and industrialization etc ”

W it h th e h ig h d e t e r m in a t io n t o in t e r n a t io n a l e c o n o m ic in t e g r a t io n , in 1 9 9 2 , V ie t n a m

u n s to p p e d th e r e la t io n s h ip w i t h th e in t e r n a t io n a l m o n e t a r y o r g a n iz a tio n s s u c h as I M F ,

W B O n 2 5 J u ly 1 9 9 5 , V ie t n a m b e c a m e th e o f f i c i a l m e m b e r o f A s ia n S o u th E a s t N a tio n s ( A S E A N ) , s ig n e d th e P r o t o c o l in c o m m it m e n t to ta k e p a r t in th e C E F P / A F T A ; s in c e 01

be tre a te d as n o t b e in g in th e o r d in a r y c o u rs e o f tr a d e ” ( A r t i c l e 2 2 l o f A D A ) a n d th is

m a y b e d is r e g a r d e d in d e t e r m in a t io n o f th e n o r m a l v a lu e o f th e p r o d u c t b y th e a u th o r itie s

2; EU at the R e g u la tio n N o 5 1 9 /9 4 / C E listed e c o n o m i e s c o n s i d e r e d as n o n - m a r k e t o nes, in c lu d in g Albania, A rm en ia,

A zerb aijan , B elarus, G e o r g ia , K a z a k h s ta n , N o r th K o re a , K y rg y z , M o l d o v a , M o n g o l ia , T a jik ista n , T u rk m e n ista n , Ukra ine, U z b e k is ta n , C h in a and V ietn am

V ie t n a m is in th e t r a n s it io n in t o th e m a r k e t o n e , s o th e V A D n o t d is tin g u is h e s th e n o n -

m a r k e t a n d m a r k e t e c o n o m ie s

2.2.3 Conditions for application of anti-dumping measures

T o e n s u re th e o b je c tiv e n e s s o f th e a p p lic a tio n o f a n t i- d u m p in g m e a s u re s , in th e

' s T h e r e are tw o auth o rities in U S , th ey are Intern ational T ra d e C o m m it t e e an d D e p t o f C o m m e r c e

T h a ila n d , b e fo r e 1999, there w ere tw o authorities: D ept o f F o re ig n T r a d e (in c h a rg e o f in vestigation o f a n ti­

d u m p in g ), and D e p t o f D o m e s t ic T ra d e (in charge o f in vestigation o f injuries) U n d e r the A n ti- D u m p in g L a w and

S u b sid ia ry B E 2 5 4 2 (2 0 0 0 ) , all these tw o p ro c e s se s are re sp o n sib ility o f the D e p t o f F o r e i g n T ra d e

U n d e r th e V A D , th e t im e o f in v e s t ig a t io n f o r a p p lic a tio n o f a n t i- d u m p in g m e a s u re s is n o t

o v e r 12 m o n th s f r o m th e d a te o f th e d e c is io n o n in v e s t ig a t io n In s p e c ia l c a s e , th e M in is t e r

o f T ra d e m a y e x t e n d th e in v e s t ig a t io n tim e , b u t th e e x te n s io n is n o t o v e r 0 6 m o n th s T h is

p e rio d is e q u a l to th a t o f W T O B u t, h e re , i t s h o u ld b e n o te d th a t V ie t n a m d o e s n o t h a v e

e n o u g h q u a lif ie d s t a f f th a t a re lim it e d in b o th th e o r ie s a n d p r a c tic e s ( k n o w le d g e o f f o r e ig n

la n g u a g e , o f a c c o u n t in g , e tc W h ile th e W T O a u t h o r it ie s o f a n t i- d u m p in g in v e s tig a tio n

L IST O F A N T I-D U M P IN G IN V E S T IG A T IO N S

TO V IE T N A M E S E E X P O R T S , U P T O I1 /2 0 0 4 31

NO YEAR COUNTRY

I

1 1994 Colombia Rice No anti-dumping tax imposed Dumped in the rate of

9.07% but not injury to the rice industry in Colombia.

2 1998 EU Glutamate Anti-dumping tax imposed, the rate 16,8%

3 1998 EU Shoes and

slippers

No anti-dumping tax imposed, because its market share was increased smaller than China, Indonesia and Thailand.

4 2000 Poland Lighters Anti-dumping tax imposed, the rate of 0.09/pcs

5 2001 Canada Garlic Anti-dumping tax imposed; CAD 1,48/kg

8 2002 S Korea Lighter The prosecutor withdrawn the complaint, the Trade

Committee of S Korea decided suspension

9 2002 US Catfish Anti-dumping tax imposed The rate was about from

12 2004 EU Bicycle Investigation was initiated in April, 2004

13 2004 US Shrimp

Anti-dumping tax imposed at rate of from 12,11 to 93,13% according to the preliminary judgment of DOC, US.

11 S o u i.e : c o lle c te d from intern et by a u th o r

CHAPTER III RECOMMENDATIONS AND SOLUTIONS

TO PERFECT THE ANTI-DUMPING LAW IN VIETNAM

d o c u m e n t T h e V A D n o t p r o v id e d e t a ile d d e f in it io n s o f “the ordinary course of trade”,

“significant injury to the domestic industry”, ‘‘threat of significant injury to ”, " export price" thai m a y p r o v id e S ta te ’ s b o d ie s c o n v e n ie n c e in im p le m e n t a t io n b u t c a u s e c e r ta in

d i f f i c u l t y to e n te r p r is e s a n d r e la te d p a r tie s in o b s e r v a tio n , im p le m e n t a t io n a n d a p p lic a tio n

A lth o u g h , th is d i f f i c u l t y c a n b e o v e r c o m e b y d o c u m e n ts o f in s t r u c t io n is s u e d b y th e

G o v e r n m e n t a n d o t h e r S ta te b o d ie s , th e s t a b ilit y is lo w c a u s in g th e a p p lie d s u b je c ts o n th e

d e fe n s iv e

12 O n 2 9 /4 /2 0 0 4 , E u r o p e a n B ic y c le A s s o c i a tio n (E B A ) su b m it te d the a p p lic a tio n for a n t i - d u m p in g investi gati on on

b ic y c le s im p o r t e d fr o m 9 V ie t n a m e s e c o m p a n i e s to EU 03 c o m p a n i e s out o f th ese 9 c o m p a n i e s s u e d d i d n ’t e x p o rt

b ic y c le s to EU m arket T h e c o m p e t e n t a u th o r ity o f C /O in V ie tn am , V ie tn a m C h a m b e r o f C o m m e r c e and In dustry ( V C C 1 ) a s s e rte d not to issu e C /O to three d e p e n d e n ts

V ie tn a m h a s s ig n e d o r a c c e d e d to o th e r w is e p r o v id e f o r , s u c h in te r n a t io n a l a g re e m e n ts

s h a ll a p p ly ” ( A r t i c l e 2 7 - S e ttle m e n t o f d is p u te s a n d h a n d lin g o f v io la t io n s ) T h e

G o v e r n m e n t o f V ie t n a m s h o u ld p a y a tte n tio n to th e c o m p a t ib ili t y w it h th e g e n e ra l

in te r n a tio n a l p r a c tic e s a n d W T O ’ s p r o v is io n s b o th in th e o r y a n d p r a c tic e s w h e n b u ild in g

1.3 The G o vern m en t sh o u ld strengthen the State m a n a g em en t ability o f the

C om petition D epartm en t, M in istry o f Trade a n d o th er S ta te ’s organs f o r anti-dum ping.