Us non - Tariff barriers to Vietnamese seafood export

of the United States? What role does the state and association have in responding to these barriers? (4) What are the reasons that limit Vietnam's ability to respond to US non-tariff barriers? These questions are answered on the basis of hypotheses: Hypothesis 1 is: In the period of 2002 - 2018, Vietnamese seafood exporters often face technical barriers (SPS, TBT) and temporary barriers of the United States. Hypothesis 2 is: The US non-tariff barriers increase the adaptive costs of exporting enterprises. Hypothesis 3 is: Seafood exporters have had flexible measures to respond to the impacts of US non-tariff barriers. Hypothesis 4 is: The response measures of the Vietnamese government, associations and export enterprises have brought certain results, but there are still limitations due to the impact of many different causes. objective and subjective, both internal and external. In particular, the main cause comes from the subjective factors related to the internal capacity of enterprises and the State's policy environment. 5. The methodology and research methods of the dissertation Methodology: The dissertation uses a system of points of view leading the research of NTBs including: Dialectical materialist opinion System perspective Historical perspective The method of data collection The dissertation uses secondary data collection method based on Vietnamese and US databases and statistics on the theoretical basis of NTBs, market situation, seafood import-export turnover, US NTBs regulations. Methods of analysis To carry out the study, the dissertation uses the following qualitative analysis methods: + Methods of analysis and synthesis + Comparative method + Case study method + Inheritance method + Method of experts 6. New contributions to the science of the dissertation Firstly, the dissertation has systematized and clarified some theoretical issues about NTBs in international trade and NTBs of the U.S for seafood products, explained the concept of NTBs and makes clear my opinion on the use of NTBs classification to seafood export. Secondly, provide a new approach on the impact of technical barriers on both positive and negative aspects to the exporting industry and countries. From there, draw conclusions that technical barriers has a positive impact on manufacturing groups and developed countries. For underdeveloped economies (such as Vietnam) and in non-productive sectors (particularly fisheries), the positive impact is less or vulnerable to these measures. Thirdly, proposing a model for authentication of factors affecting the ability to cope with NTBs for export goods. Fourthly, the dissertation analyzed the current export situation and the situation of using NTBs of the United States for Vietnam's export goods in a new context with its own object and scope of research. Focusing on two types of barriers: (1) The US anti-dumping (antidumping) to Vietnamese pangasius and shrimp from 2002 to 2018; (2) New technical barriers in the US market recently such as: USDA catfish inspection program, NOAA's Seafood Import Monitoring Program (SIMP). Fifthly, based on the goals of the seafood industry development strategy to 2025, vision to 2030, the trend of developing NTBs in the US market for Vietnamese seafood products, and assessments on the current situation dealing with NTBs for Vietnam's export-import goods recently, the thesis has developed and proposed a number of measures to improve the ability of coping with NTBs of the State and the business community to increase export turnover and improve Vietnam's export efficiency to the US market in the coming time. 7. Theoretical and practical meanings of the dissertation The dissertation is a scientific work with theoretical and practical significance, is a document that helps the State research and management agencies and aquaculture enterprises to develop development plans, make rational decisions to improve. High ability to cope with NTBs in the near future. 8. The structure of the dissertation In addition to the Introduction, Conclusion, List of References and Appendix, the main content of the dissertation is presented in 4 chapters as follows: Chapter 1: Overview of research situation and issues related to the dissertation topic Chapter 2: Rationale and practice of US non-tariff barriers to fishery products Chapter 3: The situation of the US non-tariff barriers to Vietnam's seafood exports and Vietnam's countermeasures Chapter 4: Some recommendations and solutions to cope with US non-tariff barriers to Vietnam's seafood exports CHAPTER 1 OVERVIEW OF THE RESEARCH SITUATION AND PROBLEMS RELATED TO THE DISSERTATION 1.1. International research works on US non-tariff barriers to Vietnam's seafood exports 1.2. Vietnam's studies on non-tariff barriers of the United States on exported seafood products 1.3. General assessment of published works on the non- tariff barriers of the United States to Vietnam's export-import goods and the theoretical and practical gaps that need further research in the dissertation In theory: There are many studies on "Non-tariff barriers", but so far, there has not been an official definition of "non-tariff barriers" even in official documents. of the WTO. Besides, very few constructions of the comprehensive theoretical framework on NTBs. Factors affecting the ability to respond to NTBs for Vietnam's export- import goods have not been mentioned. Therefore, the dissertation tries to approach the problem as follows: (1) Overview of the trends, theoretical views on NTBs of scholars, organizations, and countries, from which give a definition. and appropriate classification as the basis for the research process of the thesis. (2) The impact of NTBs on exports. (3) Factors affecting NTBs' ability to respond to exported goods of a country. (4) Study China's experience in dealing with NTBs of the United States for export-import products on both the State and the enterprise perspective, thereby drawing lessons for the state management agencies and Vietnamese aquaculture enterprises. In practice: the research works related to the thesis topic still have many gaps, including: (1) Lack of in-depth and fully mentioned works on the status and impact of US non-tariff barriers on Vietnam's export-import goods recently (2002-2018). Some analysis studies on technical expertise, antidumping for seafood products but the research time is quite long ago, PhD students can only refer to handling the research issues of the thesis. Therefore, it can be said that the thesis's research is new, systematic, in-depth and updated with the latest developments and trends in NTBs for Vietnam's export-import products (2) Lack of evaluation works on factors limiting the ability to respond of Vietnamese seafood to NTBs. (3) The number of systematic and comprehensive researches on the solutions to deal with US.NTBs for Vietnam's export-import goods is very small. Therefore, the thesis will study the current status of US NTBs on Vietnam's export-import goods in the period of 2002 - 2018 to highlight the characteristics of the US NTBs during this period and as a basis for forecasting. the trend of NTBs of the United States in the coming period. The thesis will study the impact of these barriers on Vietnam's export activities and the factors hindering Vietnam's coping capacity. The dissertation also goes in depth to analyze specific response measures, evaluate results and exist in the implementation process, as a basis for proposing solutions. Finally, the dissertation desires to offer solutions and policies to help businesses, associations and the State respond to NTBs of the United States in order to boost Vietnam's export in the coming period. CHAPTER 2 THEORETICAL AND PRACTICAL BASIS ON NON- TARIFF BARRIERS OF THE UNITED STATES ON FISHERIES 2.1. Rationale for non-tariff barriers in international trade 2.1.1. Concept There are many different definitions of non-tariff barriers, but the majority of studies emphasize the purpose of discrimination to protect domestic production, so according to the PhD student can understand "non-tariff barriers". Tariffs are any measure, not tariffs, but the use of technical and non-technical barriers that hinder imports into a country and protect domestic consumers. ” . 2.1.2. Classification of non-tariff barriers Within the framework of the thesis, the PhD student will focus on two barriers that Vietnam's export enterprises often face when entering the US market: technical barriers (SPS, TBT) and anti- barriers. dumping (temporary barrier) to find more specific and more effective countermeasures. 2.1.2.1. Technical barriers 2.1.2.2. Anti-dumping barriers (temporary barriers) 2.1.3. Impact of non-tariff barriers on export activities 2.1.3.1. Impact of Technical Barriers (SPS / TBT) (a) Positive effects Firstly, Protect the ecological environment and achieve sustainable development Second, Promote scientific and technological progress and realize the adjustment and optimization of industrial structure. Thirdly, Standardize import markets and improve the quality of imported goods. (b) Negative effects The biggest impact of technical barriers to international trade on firms is the increase in costs (c) Impacts vary across industries (d) Impacts vary from country to country 2.1.3.2. Impact of Anti-dumping barriers 2.1.4. Factors affecting a country's ability to respond to NTBs on exports Business capacity State management Capacity to cope with non-tariff barriers Associate capacity Diagram 2.1. Factors affecting a country's ability to respond to non-tariff barriers on exports Source: Authors based on the studies of Unctad (2013), Henson et al. (1997), Zsoka Koczan and Alexander Plekhanov (2013). 2.2. US non-tariff barriers to fishery products 2.2.1. Technical barriers a. Food Drug and Cosmetic Act (FDCA) Bioterrorism Act (Bioterrorism Act) Food Safety Modernization Act (FSMA) b. Farm Bill "Farm Bill" c. IUU law (law against illegal fishing, undeclared and unregulated) 2.2.2. Temporary barrier - Investigation of antidumping 2.3. Experience of the Chinese fisheries industry in responding to the US non-tariff barriers and Lessons for Vietnam 2.3.1. Overview of China's seafood exports to the United States 2.3.2. Current situation of Chinese seafood exports is entangled with non-tariff barriers of the United States a. Technical barriers First, the United States applies an "automatic detention" order to certain fishery products originating from China. Second, the United States refused to enter some Chinese seafood shipments for violating technical standards (food safety and hygiene). b. Temporary barriers (anti-dumping) 2.3.3. Chinese countermeasures a. For technical barriers - Government and association measures Improve seafood export activities through early warning mechanism Establishment of a core information transaction mechanism Precautionary measures - Measures of the enterprise Take the initiative in ensuring food hygiene and safety Proactively achieve a food safety certificate Adjust the market structure, diversify the market b. For Temporary Barriers (anti-dumping) In response to temporary barriers (anti-dumping), China has relied on the role and strength of government, industry organizations, mobilizing the enthusiasm of businesses, and building efforts. a four- party cooperation mechanism between "central government, local government, commercial organizations, businesses" to resolve trade disputes. 2.3.4. Some lessons learned from studying Chinese seafood industry's experience in dealing with non-tariff barriers a. Technical barriers - Lessons for State management agencies Firstly, educating the public awareness and raising awareness of food safety for management agencies and enterprises. Second, establish an effective early warning mechanism. - Lessons for businesses Firstly, Vietnamese businesses strive to achieve international quality management system certification. Second, adjust the export strategy. b. Temporary barriers (anti-dumping) - Lessons for state agencies - Lessons for businesses CHAPTER 3 THE SITUATION THE OF US NON-TARIFF BARRIERS TO VIETNAMESE SEAFOOD EXPORT AND MEASURES TO RESPONS OF VIETNAM 3.1. Overview of Vietnam's seafood exports to the US market 3.1.1. Exports Table 3.1: Vietnam's seafood export turnover to the US market in 2009 - 2017 (unit: million USD,%) I tems 2 008 2 009 2 010 2 011 2 012 2 013 2 014 2 015 2 016 2 017 2 018 S eafoo d 7 44,6 7 11,14 5 9 56 1 .159 1 .166 1 .518 1 .700 1 .310 1 .440 1 .410 1 .600 G rowth rate - 4,5 3 4,4 2 1,2 0 ,6 3 0 1 1,9 - 22,9 6 ,8 - 1,9 1 4% Source: Compiled from VASEP and Vietfish 3.1.2. Export structure of aquatic products -Shrimp Table 3.2: Vietnam's shrimp export turnover to the US market in 2009 - 2017 (unit: million USD,%) I tems 2 009 2 010 2 011 2 012 2 013 2 014 2 015 2 016 2 017 S hrim 3 98 5 51,1 5 58,5 4 54,5 8 31 1 .140 6 57 7 09 6 59 G rowth rate 3 8,5% 1 % - 18,6% 8 2,8% 3 7,2% - 38,3% 8 % - 7% Source: Compiled from VASEP and Vietfish - Pangasius fish Table 3.3. Pangasius export value of Vietnam to the US market in 2008-2018 (unit: million USD,%) Item 2 008 2 009 2 010 2 011 2 012 2 013 2 014 2 015 2 016 2 017 2 018 Pangasius fish 7 5 1 34 1 76,6 3 31,7 3 58,8 3 80,8 3 36,8 3 07,44 3 66 3 44 5 30 Growth rate 7 8,6 3 1,8 8 7,8 8 ,17 6 ,13 - 11,5 - 9,5 1 6 - 11 5 4 Source: Compiled from VASEP and Vietfish 3.2. Non-tariff barriers of the United States and impacts on Vietnam's export and import goods 3.2.1. US non-tariff barriers to Vietnam's export and import goods 3.2.1.1. Technical barriers a. Program of inspection and examination of imported seafood by FDA To ensure the safety of imported seafood, the FDA takes the following measures: (1) Inspect the facilities of processors and exporters annually to ensure HACCP compliance and (2) Conduct sampling and excretion. analysis of imported seafood to identify pollutants and dangers to health. Table 3.4. Number of Vietnamese seafood shipments returned in the US market (Warning number) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Shrimp 27 111 31 42 23 35 54 40 41 31 Pangasius 12 9 28 10 27 4 5 1 7 0 Sea food 244 286 202 242 167 116 141 83 74 66 Source: Summary of Report on import rejection “Import Refusal Report” của FDA, Table 3.5. The main cause of warnings for shrimp and catfish shipments in the United States (Shipment) ST T Nguyên nhân 200 8 200 9 201 0 201 1 201 2 201 3 201 4 201 5 201 6 201 7 1 Infection with Salmonell a Shrimp 18 76 31 24 12 5 7 x 30 5 Pangasiu s 5 3 28 6 14 4 x x x x 2 Chemicals and antibiotics Shrimp 5 24 x 7 10 23 46 36 13 12 Pangasiu s 6 7 x 4 10 x 4 x x x 3 Dirt Shrimp 3 9 x 7 1 2 x 2 3 x Pangasiu s 1 x x x 1 x 1 x x x 4 False Labeling Shrimp 1 x x 3 x 4 4 1 x x Pangasiu s x x x x 6 x x x x x Source: Summary of Report on import rejection “Import Refusal Report” của FDA, b. USDA catfish inspection program. One of the fundamental changes when implementing the Farm Bill Act 2014 for Vietnam's catfish is that the US side will perform 100% inspection of shipments instead of the probability test as before. There is ample evidence that the US Farm Act 2008 and 2014 violated commitments under the SPS Agreement. WTO litigation requires a lot of time, effort, and extensive analysis, so to predict the outcome of whether Vietnam will succeed in bringing this lawsuit to the WTO is a very hard. However, considering the overwhelming evidence analyzed above, Vietnam has a good chance to prevail in the case against the US for the USDA's catfish inspection program. Therefore, the United States should dismantle the USDA pangasius inspection program and return the right to inspect only imported catfish to the FDA c. NOAA's Seafood Import Monitoring Program (SIMP) The SIMP program will take effect from January 1, 2018 for most species on the priority list as prescribed, particularly shrimp and abalone will be postponed at a later stage. 3.2.2.2. Barriers against dumping (1) For pangasius exports in 2002 Table 3.6. Statistics of US anti-dumping duties on Vietnamese pangasius No Unit Required Respondent Voluntary Defendant General antidumping tax rate Duration of application POR 1 % 37,94 47,05 63,88 1/8/2003 – 31/7/2014 POR 2 % 6,81 47,05 63,88 1/8/2004 – 31/7/2005 POR 3 % 6,81 47,05 63,88 1/8/2005 – 31/7/2006 POR 4 % 6,81 0,52 63,88 1/8/2006 – 31/7/2007 POR 5 (USD/kg) 0 0,02 2,11 1/8/2007 – 31/7/2008 POR 6 (USD/kg) 0 0,02 2,11 1/8/2008-31/7/2009 POR 7 (USD/kg) 0 0,02 2,11 1/8/2009 – 31/7/2010 POR 8 (USD/kg) 0,19 0,02 0,77 1/8/2010 – 31/7/2011 POR 9 (USD/kg) 0 2,15 2,11 1/8/2011- 31/7/2012 POR 10 (USD/kg) 0 0,97 2,39 1/8/2012 – 1/8/2013 POR 11 (USD/kg) 0 0,6 - 1/8/2013 – 31/7/2014 POR 12 (USD/kg) 0,69 2,39 2,39 01/8/2014 31/7/2015 POR 13 (USD/kg) 3,87 7,74 2,39 1/8/2015 – 31/7/2016 POR14 (USD/kg) 0 – 1,37 0,41 2,39 1/8/2016 - 31/7/2017 Source: Complied by the author (2) For shrimp exports in 2003 Table 3.7. Statistics of US anti-dumping duties on Vietnamese shrimp - Unit:% No Decision date cc Mandatory defendant Voluntary Defendant General antidumping duty Duration of application POR 1 4,3 - 5,24 4,57 25,76 16/7/2004 - 31/1/2006 POR 2 02/09/2008 0 4,57% 25,76 POR 3 8/9/2009 0,08-0,21 4,57 25,76 1/2/2007 - 31/1/2008 POR 4 29/9/2010 2,95-4,89 3,92 25,76 1/2/2008 - 31/1/2009 POR 5 31/8/2011 0,0-1,15 1,04 25,76 1/2/2009 - 31/1/2010 POR 6 4/9/2012 1,23-1,27 1,25 25,76 1/2/2010 - 31/1/2011 POR7 10/09/2013 0,0 0,0 25,76 1/2/2011 - 31/1/2012 POR8 24/09/2014 4,98 - 9,75 6,37 25,76 1/2/2012 - 31/1/2013 POR9 7/9/2015 0 - 1,39 0,91 25,4 1/2/2013 - 31/1/2014 POR10 7/9/2016 0,91% 4,78% 25,76 1/2/2014 - 31/1/2015. POR11 11/2016 0,91% 4,78% 25,75% 1/2/2015 - 31/1/2016 POR12 8/3/2018 25,39% 25,39% 25,39% 1/2/2016- 31//1/2017 Source: The author summarizes data from VASEP, Directorate of Fisheries, General Department of Customs and other websites 3.2.2. The impact of non-tariff barriers in the US market on Vietnam's export activities 3.2.2.1. Technical barriers To meet US technical standards, most seafood businesses have to increase costs, either one-time costs or recurring costs, or both, depending on the characteristics of each business. 3.2.2.2. Impact of anti-dumping barriers 3.3. Vietnam's responses to non-tariff barriers of the United States 3.3.1. Technical barriers a. Government measures, associations Firstly, Promulgating and disseminating fishery safety policies and laws Secondly, the propaganda, guidance on good breeding techniques, raising awareness for farmers. Thirdly, the inspection, control and sanctions for violations, food safety. b. Measures of the business Firstly, businesses have been proactive in ensuring food hygiene and safety to meet the requirements of exporting countries through the application of quality management systems such as GMP, ISO, HACCP ... Secondly, businesses actively innovate and transfer technology. Thirdly, Adjust the market structure, diversify the market 3.3.2. Barriers against dumping a. Government measures Firstly, Establish an early warning mechanism for anti- dumping lawsuits Second, the lobbying work b. Measures of the fisheries industry association Industry associations play an extremely important role in anti- dumping lawsuits. Support early warning information to businesses Support businesses to answer questions Hire a consulting lawyer to sue Lobbying activities c. Measures of the business Enterprises are subject to direct impact of antidumping measures, so they must play the leading role and take the initiative to appeal. Therefore, in the time before and during the lawsuit, Vietnamese businesses have carefully prepared, fully prepared, and mobilized the solidarity and unity in the business community. Producing, processing and exporting Vietnamese seafood. 3.4. Assessment of Vietnam's successes and limitations in dealing with non-tariff barriers on aquatic products exported to the US over the past time 3.4.1. Achievements / Achievements a. About dealing with technical barriers The fisheries industry has achieved success in meeting US technical barriers as follows: Firstly, Regarding to meet product quality standards has been significantly improved. Secondly, Regarding the control of antibiotic residues, toxic chemicals in recent years have gradually decreased. Thirdly, on food labeling: businesses have grasped the basic principles of labeling and origin of goods that meet the requirements of this barrier. b. On dealing with Temporary Barriers (Anti-dumping) Thanks to the close cooperation between the authorities, departments, associations and seafood processing and exporting enterprises, Vietnam has successfully brought the US dumping case to the WTO. February 2010 (with DS404 case code) and January 2013 with DS429 case code (requires the US to enforce the DSB / WTO ruling). 3.4.2. The limitations a. Technical barriers In addition to the successes that the State and fishery enterprises of Vietnam have achieved as above, there are still many difficulties and limitations. • Regarding product quality standards: The quality of Vietnam's exported seafood products has been improved a lot but it has not yet met the requirements. • Regarding control of antibiotic residues, toxic chemicals The situation of controlling antibiotic residues and toxic chemicals in Vietnam has made many progress, however, in the US market, many seafood shipments of our country are still refused to be imported due to drug residues. Veterinary medicine, heavy metals and microbiological pollution ... b. Temporary barriers (Anti-dumping) In addition to the successes achieved by the government, the Vietnam Fisheries Association and Vietnamese businesses, both anti- dumping investigations of pangasius and shrimp from the United States against Vietnam have been carried out. As a result, dumping has caused considerable damage to the domestic industry of the United States, and has been subject to high tax rates and, to date, both shrimp and tra fish (two key aquatic products). Vietnamese products) have not yet escaped from that tax upon the expiry of the initial tax period (5 years). 3.4.3. Reasons for limiting the ability to respond to non-tariff barriers of Vietnam's seafood industry 3.4.3.1. For technical barriers Limited physical capital resources Limited human resources Restrictions on production and distribution system (seafood supply chain) Restrictions on the State's policy environment. 3.4.3.2. For Temporary Barriers First, Vietnam has not been recognized by the United States as a market economy. Secondly, industry structure characteristics Third, fisheries enterprises lack the legal background and experience in resolving international judicial disputes. Fourth, US law protects the interests of domestic producers at the maximum. CHAPTER 4 SOME RECOMMENDATIONS AND SOLUTIONS TO RESPOND TO THE U.S. NON-TARIFF BARRIERS TO VIETNAMESE PRODUCED GOODS 4.1. Trends and objectives of developing Vietnam's seafood export to the US market The industry's goal is to maintain a large market share in traditional markets such as the EU, US and Japan and expand to other markets in the Asia Pacific region. 4.2. The trend of US non-tariff barriers to Vietnamese seafood exports Firstly, actively use trade remedies (temporary barriers) and address "unfair trade" behaviors. Second, increasing technical barriers. 4.3. Some solutions to deal with non-tariff barriers in the US market 4.3.1. Solutions to deal with technical barriers 4.3.1.1. Capital solutions a. Purpose of the solution Improve the efficiency of capital sources / investment costs in infrastructure / factory equipment b. Content of the soluti