Vietnam may sue the US at WTO

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Vietnam may sue the US at WTO

The Ministry of Agriculture and Rural Development (MARD) has mentioned the possibility of suing the US at the World Trade Organization (WTO) at working sessions with the US side.

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In December 2015, the US Department of Agriculture (USDA) issued the final regulations on the inspection of Siluriformes catfish, including Vietnam’s tra and basa fish.

The regulations, applied to countries which export catfish to the US, will take effect on March 1, 2016 with an 18-month transitional period.

In mid-February 2016, Vietnam sent the inter-ministerial task force headed by MARD’s Deputy Minister Vu Van Tam to the US to work with USDA and related organizations and individuals to discuss the issue and clarify any differences in interpretation and application.

On February 24-26, a USDA technical team paid a working visit to Vietnam to continue clarifying the regulations and answer questions raised by Vietnam to maintain the tra and basa exports to the US.

Vietnamese officials expressed concern that the application of the regulations may lead to trade interruption and affect the lives of millions of Vietnamese farmers, seafood exporters and US importers and consumers.  This would also affect the trade of farm produce between Vietnam and the US.

Vietnamese officials expressed concern that the application of the regulations may lead to trade interruption and affect the lives of millions of Vietnamese farmers, seafood exporters and US importers and consumers.

The Vietnamese side asked the US to give technical support and create favorable conditions for Vietnam to satisfy the new requirements. It has asked to lengthen the transitional period, saying that there is a big difference in Vietnam’s and US's production level.

Vietnam has also informed the US side that the regulations on the inspection over catfish are not in line with Codex’s rules, and they they are not necessary for Vietnam’s tra and basa fish which has been available in the US market for the last 20 years and favored by US consumers, as it does not cause any food safety risk.

The regulations are described as a trade barrier that aims to restrict tra and basa imports from Vietnam. They violate WTO rules and TPPcommitments.

If Vietnam’s tra and basa fish exports to the US are influenced by the regulations, Vietnam may consider suing the US at WTO as the last resort. However, Vietnam still hopes the US would reconsider the regulations and abrogate them.

At the working sessions, the US Department of Agriculture committed not to cause interruption to the Vietnam’s tra and basa export to the US. It also expressed good will to strengthen the two sides’ cooperation to implement the regulations.

The regulations are part of the US Farm Bill 2014.

Vietnamese experts warned that with the strict regulations set up by the US, Vietnam’s tra and basa fish would find it hard to enter the US market.

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