January 9, 2007

Vietnamese seafood cements position in US market

Vietnam-made seafood products have survived the 'antibiotic residue' problems in the US market and have proved their good quality before American consumers, according to John Connelly, President of the US National Fisheries Institute (NFI).

Connelly told local media that the US is happy on the way Vietnam is handling the antibiotic problem on its seafood products that troubled the sector in 2005.

However, he said that Vietnamese enterprises and state agencies should find sustainable solutions of food hygiene problems as it would not be good if Vietnam only acted after importing countries raised their voices.

The NFI coordinated with the Vietnam Ministry of Fisheries and the Vietnam Association of Seafood Exporters to resolve the problem of antibiotic residues after it was discovered to contain its seafood exports bound to US two years ago. 

Soon after US Customs and Border Protection authorities (CBP) decided to ask US importers to pay bonds for importing seafood from Vietnam but NFI initiated legal proceedings with the US Court for International Trade (CIT) against the decision. NFI has argued that the requirements on paying bonds for importing goods from the countries which are imposed anti-dumping taxes are against the US laws. The institute has asked CBP to remove the decision.

According to Connelly, it is too early to say that the regulation on paying bonds will be removed, but NFI has gained satisfactory results in the first stage of the lawsuit.

The US court, in the first phase of the procedure, accepted the argument that the CBP's move was unlawful. The court asked CBP to reduce the requirements on bond payments and set up a ceiling level. The second stage of the lawsuit will start in early 2007 and its final decision will be stated by mid-year.

Connelly affirmed that Vietnamese enterprises were in a very good position to penetrate the US market as long as they export quality products and abide the strict US regulations particularly on labelling and packaging.