| 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 Vietnams
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 Vietnams
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.
VASEPs 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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