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No subsidy for domestic shrimp producers
16/01/2013

VGP – The Vietnam Association of Seafood Exporters and Producers (VASEP) stressed that domestic shrimp producers and exporters do not receive any subsidy from the Government.

VASEP Secretary General Truong Dinh Hoe made the confirmation in response to reports that the Coalition of Gulf Shrimp Industry in the US has filed an anti-subsidy lawsuit against shrimp imports from Viet Nam.
The US Department of Commerce (DOC) is expected to give an official reply on January 17 on whether they will launch anti-subsidy investigation into frozen warm-water shrimp imported from several countries, including Viet Nam.

Mr. Hoe asserted that as a member of the World Trade Organisation, Viet Nam complies with the WTO regulations regarding the provision of subsidy for agriculture.

He urged shrimp exporters to ready documents and data to counter the accusation, while getting prepared for even the worst scenario when the DOC accepts the anti-subsidy petition.

If the petition is accepted and Vietnamese businesses fail to persuade the DOC, Viet Nam’s shrimps will be subject to a 12% anti-subsidy tax rate. As a result, the price of shrimp will increase and it is the American consumers who have to pay for the extra.

The US was the second largest importer of Vietnamese shrimp in 2012, paying out US$480 million or more than 20% of Viet Nam’s total earnings from shrimp exports./.

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