September 7, 2011

WTO decision favours Vietnamese shrimp exports

After various considerations by both WTO panels and appellate body, the panel report supported Vietnam's claim that the zeroing methodology used by the US was not in sync with the WTO's Anti-Dumping Agreement and 1994 General Agreement on Tariffs and Trade (GATT).

This was Vietnam's key complaint since it had generated a large anti-dumping margin under this methodology, causing the US to levy anti-dumping tariffs on Vietnam shrimp exports ranging from 4.13 % to 25.76 %.

Despite US appeal arguing that the panel report went beyond what the text of the agreements provided and to negotiators agreed to in the Uruguay Round, the EU responded that the WTO inconsistency on zeroing had now been definitively resolved and that the US should take immediate steps to abandon this practice and to bring itself into conformity with its obligations.

Vietnam now expects prompt and full implementation by the US of the latest ruling.