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VIETNAM2003

Vietnam helps U.S. with free trade, market development

The Vietnam Association of Seafood Exporters and Producers (VASEP) has initiated negotiations based on a voluntary export restraint policy to resolve the catfish dispute with the United States.

Ironically, under the proposal, the developing nation Vietnam would teach the U.S. catfish industry a lesson in free market business, market development and technical expertise.

Says Brook Taylor of KPMG: “We were surprised, we thought the complaints about market access would be on the U.S. side.”

Insisting that Vietnam is not dumping catfish into the U.S. market, VASEP offers temporary restrictions on shipments of Vietnamese products to the United States to allow the U.S. industry to prepare for the free market competition with Vietnamese farmers in the future.

VASEP says the proposal represents a win-win situation.

• The export of frozen fillet of basa and tra (technically catfish, but due to U.S. legislation now named differently) from Vietnam to the United States would be limited to 90% of 2002-levels in 2003, 95% of 2002-levels in 2004 and 100% of 2002-levels in 2005. After 2005, no limitations would apply.

• The limitations, if agreed to by the U.S. side, would be controlled by Vietnam’s Ministry of Fisheries. Companies that exceed their quota would be penalized with a 25% cut for the following year. Companies that exceed their quota in 2005 would be denied custom clearance by Vietnam’s customs office.

• VASEP and its member companies would work with their U.S. counterparts in the catfish industry on the development of the U.S. catfish market by sharing resources, funds, knowledge and expertise.

• VASEP members commit themselves to implementation of the accord on proper labeling of basa and tra to achieve full compliance with Food and Drug Administration (FDA) labeling regulations.

• VASEP members continue to work with the FDA to assure that all FDA standards are continuously met by Vietnamese products.

VASEP’s general secretary, Dr. Nguyen Huu Dung, said that “this proposal demonstrates that Vietnam is ready and willing to sit down with all parties to craft a resolution to this suit that is fair and equitable to all sides.”


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