Reducing the impact of unfair competition from Thai sugar has had a positive impact on the domestic sugar industry, helping sugarcane growers overcome difficulties...
On June 15, the Ministry of Industry and Trade issued Decision No. 1578/QD-BCT on the official application of anti-dumping (AD) and anti-subsidy (AS) measures on cane sugar originating from Thailand (Thailand). Previously, based on the results of the preliminary investigation, the Ministry of Industry and Trade issued Decision No. 477/QD-BCT dated February 9, 2021, applying temporary AD and AS measures on some cane sugar products originating from Thailand.
Applying a 47.64% tax rate on Thai cane sugar for 5 years
More information about this case, at the regular press conference of the Ministry of Industry and Trade on the afternoon of June 17, Mr. Le Trieu Dung, Director of the Department of Trade Remedies (Ministry of Industry and Trade) said that the investigation process of the case was initiated on September 21, 2020, after reviewing the application of anti-dumping and countervailing measures by representatives of the domestic production industry. The investigation process was carried out by the Ministry of Industry and Trade in accordance with the regulations of the World Trade Organization, the Law on Foreign Trade Management and related regulations.
Based on information from the domestic production industry, the Thai Government and relevant parties, the Ministry of Industry and Trade has carefully reviewed and assessed the level of dumping and subsidy of Thai cane sugar products, the damage to the domestic production industry as well as assessed the socio-economic impact, including the impact on downstream production industries and consumers. “The investigation results show that sugarcane products imported from Thailand, including refined sugar and raw sugar, have been subsidized and dumped in Vietnam at a rate of 47.64%,” Mr. Dung informed.
The representative of the Trade Defense Department also said that the domestic sugarcane industry has suffered heavy losses, reflected in factors such as a sharp increase in imported goods under investigation, which has had an impact on prices, and a decline in output, capacity, sales volume, market share, revenue, and profits. The main reason for the above situation is that the amount of subsidized and dumped imported sugar from Thailand increased sharply in 2020 to nearly 1.3 million tons, an increase of 330.4% compared to 2019.
“After considering the socio-economic impacts according to the provisions of the Law on Foreign Trade Management, the current supply-demand situation, and the opinions of state management agencies, the Ministry of Industry and Trade decided to officially impose anti-dumping and anti-dumping taxes on some cane sugar products originating from Thailand at the rate of 47.64%. This decision to impose anti-dumping and anti-dumping taxes is valid for 5 years and can be reviewed in accordance with legal regulations,” Mr. Dung affirmed.
People consumed more than 6 million tons of sugarcane
Assessing the impact of the imposition of tax and the decision to officially impose anti-dumping tax on imported sugar from Thailand on the domestic market, Mr. Dung said that since the preliminary tax imposition (February 2021), the imposition of anti-dumping tax and anti-dumping tax on imported sugarcane from Thailand has had a positive impact on the domestic sugar industry. Specifically, the amount of sugar imported from Thailand from March 2021 to this point has decreased significantly, from an average of 110,000 tons in 2020 to now only about 28,000 tons (down 75%).
“This has reduced the unfair competitive impact of Thai sugar on the domestic production industry, thereby helping domestic sugar prices to increase, while the sugarcane purchase price for farmers has increased from 100,000 - 200,000 VND/ton. Thereby, helping farmers for the first time in many years consume all of more than 6 million tons of sugarcane", Mr. Dung affirmed.
According to the reflection of the Vietnam Sugarcane Association, press agencies and many production units, in many localities, farmers have plans to expand sugarcane growing areas for the upcoming 2021 - 2022 sugarcane crop. In addition, supply and demand in the market are stable, domestic sugar prices have increased but within an acceptable level and also within the calculation plan. In general, all the target factors and policies have been achieved.
"We are closely coordinating with the Sugarcane Association, the Ministry of Agriculture and Rural Development to closely monitor the import situation with the impact of this measure to have appropriate measures, ensuring the effectiveness of the AD and AS measures as well as ensuring supply and demand, stabilizing the market in accordance with regulations", Mr. Le Trieu Dung committed.
According to cafef.vn