The Vietnam Steel Association (VSA) has sent a petition to relevant authorities to take action, including complaints to the World Trade Organization (WTO) and counter-tariffs against U.S. products, to safeguard local enterprises from the U.S. steel tariff.

The Vietnam Steel Association (VSA) has sent a petition to relevant authorities to take action to safeguard local enterprises from the U.S. steel tariff. 

In the petition sent to the Government Office, the Ministry of Industry and Trade, and the Ministry of Foreign Affairs, VSA chairman Ho Nghia Dung suggested that State agencies help steel enterprises avert losses caused by a 25% tariff on steel imposed by the U.S., news website VnExpress reports.

VSA proposed that the two above-mentioned ministries work with related agencies from the U.S. to express the official stance of Vietnam towards the steeltariff, and lodge a complaint to WTO as other countries have done.

The petition also requests the ministries and agencies ask the U.S. to remove its planned tariff on Vietnam’s steel on the basis of mutual security relation and multifaceted Partnership and Co-operation Agreement (PCA) that was announced during the official Vietnam visit by U.S. President Donald Trump in end-2017.

In case the U.S. keeps slapping the tariff, Vietnam should suggest the partner consider a tax exemption for a special type of Vietnam steel exported stateside. According to the petition, the Government should rethinkpreferential tariffs on imports from the U.S. as a countermeasure.

VSA has gathered voices from local enterprises, and hired lawyers in the U.S. after America initiated its investigation to impose tariffs on steel and aluminum.Upon widespread protests, the U.S.has gradually excluded many countries from the tariffs, saying such countries are its allies, which causes unfair competition for other steel exporting nations, including Vietnam.

VSA in the petition also stresses that the steel trade between Vietnam and the U.S. is fairly balanced, or even in favor of the U.S.

Between 2012 and 2017, Vietnam exported some 2.48 million tons of steel to the U.S. and imported around 2.52 million tons from this country. Thus, the import-export balance of trade between the two countries is equivalent.

Last year, there was 567,000 tons of Vietnam steel exported to the U.S., but the former also imported 632,000 tons of steel from the latter. In addition, the amount of Vietnam steel bound for the U.S. accounts for a small 1.66% of America’s total steel imports.

Most of Vietnam steel is used for civil construction. That the U.S. government said steel may threaten its security is unreasonable.

The tariff of 25% will adversely affect Vietnam’s steel industry in terms of both export and production, and even causes the country to lose its market in the U.S., as Vietnam steel is not able to compete with those from other countries that enjoy taxexemptions.

SGT