December 16, 2009

 

Vietnam works with US on quality of seafood exports

 

 

Vietnamese and American officials have met to discuss on how best to guarantee the quality of Vietnam's seafood exports to the US.

 

The US is Vietnam's third largest seafood export market, accounting for 16.9% of total volume. The EU is first-placed at 26% while Japan is second at 17.8%. Tra and basa fish account for 31.8% of total seafood exports.

 

However, the US imposes anti-dumping duties and was considering redefining tra fish, which could hurt Vietnam's seafood exports.

 

John Connelly, President of the US National Fisheries Institute (NFI), acknowledged that both Vietnam's exporters and US consumers will be adversely impacted if the US legally defines tra fish as a variety of catfish and puts strict control over tra fish imports.

 

As a result, in a period of economic difficulties, there is pressure in the US to use tariff and non-tariff barriers to restrict the entry of competitive products from other countries.

 

But four departments of the US government oppose the USDA's proposal to reclassify tra and basa (pangasius) as catfish. The US Department of Commerce also opposed the proposal out of concern that Vietnam may sue the US successful at the World Trade Organisation (WTO).

 

Connelly also noted several problems with Vietnamese seafood exports.

 

First of all, Vietnamese seafood exporters ice their products for preservation and the weight of the ice are added onto product weight, a practice which the US Food and Drug Administration (FDA) considered as deceptive, he said.

 

The second problem is that NFI believes that Vietnamese enterprises are transshipping catfish through Mexico into the US to avoid tax. The third issue is that the names of different Vietnamese seafood varieties confuse many American consumers. The last issue is the problematic use of a substance that causes the fish to retain water, according to Connelly.

 

Nguyen Huu Dung, deputy chairman of the Vietnam Association of Seafood Exporters and Producers (Vasep), said as long as the anti-dumping tariffs on frozen fillet products persist, only Vietnamese companies that exceptionally enjoy low duties can export products to the US.

 

There are 10 such companies which have gained a good reputation with the US Department of Commerce; therefore, they will not threaten their access by ignoring the regulations on net weight.

 

Dung confirmed that Vasep will cooperate with NFI and US importers on current trade and seafood quality problems.

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