Rising Trade Remedy Pressures in CPTPP and New-Generation FTA Markets
In the context of international economic integration, trade remedy measures are a common trend used by countries to protect domestic production, especially for Vietnam—an open economy that has signed 17 FTAs, including many new-generation FTAs such as the CPTPP. However, according to the Trade Remedies Authority of Vietnam, a notable point is that investigation trends are becoming increasingly complex. The scope of products under investigation has expanded to include even low-value items such as paper bags,
Vietnamese Goods under the “Spotlight” of Trade Remedies from CPTPP Markets
To date, Vietnam has established trade relations with more than 230 countries and territories and has signed and implemented 17 Free Trade Agreements (FTAs), including new-generation agreements with very high standards such as the CPTPP, EVFTA, RCEP, and UKVFTA.
The integration process has helped Vietnam’s export turnover exceed USD 800 billion in 2024, while the trade surplus has been maintained at a high level and reached a record USD 25 billion. This has created a stable source of foreign currency, reduced exchange rate pressure, and supported foreign exchange reserves.
Exports to markets that are members of new-generation FTAs such as the CPTPP and EVFTA have recorded strong and stable growth. For example, exports to Australia (a CPTPP member) reached USD 6.5 billion in 2024, up 23.8% compared to 2023; exports to Canada (also a CPTPP member) reached USD 6.4 billion, up 13.5%; and exports to the EU reached USD 51.7 billion, up 18.5%.
However, accompanying these trade benefits is the rising trend of investigations and application of trade remedy measures. To date, there have been around 286 trade remedy investigation cases initiated by 25 markets and territories against Vietnamese exports. Many of these cases were initiated by markets that are FTA partners of Vietnam.
Markets considered to have deep cooperation with Vietnam, such as the EU, India, Australia, Mexico, and Canada—also Vietnam’s FTA partners—are among those that frequently initiate anti-dumping, anti-subsidy, or safeguard investigations against Vietnamese goods. For example, the EU has conducted 18 cases, India 39 cases, and Canada 21 cases.
In the context of international economic integration, trade remedy measures are a common trend to protect domestic production. However, according to the Trade Remedies Authority of Vietnam, a noteworthy issue is that investigations are becoming increasingly complex. The scope of investigated products has expanded, including even low-value items such as paper bags, honey, and paper plates, in addition to traditional products.
Moreover, investigation methods are becoming more sophisticated, with forms of “dual investigations” or “cluster investigations,” in which multiple products within the same industry are investigated simultaneously or multiple trade remedy measures are applied at the same time.
Investigation regulations are increasingly stringent, with longer durations and even new elements such as separate product scope investigations, anti-circumvention investigations, and cross-border subsidy investigations. Many countries still consider Vietnam a non-market economy, leading to unreasonable and imposed duty levels.
Improving Response Capacity
In response to the developments and trends of global trade remedy investigations, especially from FTA partner markets, management agencies, businesses, associations, and industries have proactively and closely cooperated to deal with foreign trade remedy investigations.
As a result, Vietnam’s trade remedy response efforts have achieved positive outcomes in recent years. According to the Trade Remedies Authority of Vietnam, nearly 50% of cases initiated by foreign authorities have been effectively supported, leading to termination of investigations or removal of imposed duties.
For example, Australia, India, Malaysia, and Indonesia have terminated many investigations or decided not to impose duties on products such as steel pipes, MDF boards, and extruded aluminum. Some Vietnamese exporters of pangasius and basa fish, shrimp, tires, and steel have benefited from low or zero duty rates, creating significant competitive advantages compared to other countries in the same industries.
The Trade Remedies Authority also notes increasing proactiveness from businesses. Many enterprises have established dedicated teams, built transparent accounting and management systems, and closely cooperated with lawyers and Vietnamese trade offices overseas. In addition, early warning systems and databases have contributed to enhancing the trade remedy capacity of the business community.
Mr. Ngo Sy Hoai, Vice Chairman and Secretary General of the Vietnam Timber and Forest Products Association, stated that with the support of the Trade Remedies Authority (Ministry of Industry and Trade), the Association and Vietnamese wood enterprises have prepared themselves to respond to investigations from foreign markets. In particular, wood enterprises highly appreciate the Authority’s support in training, capacity building, technical assistance on trade remedies, and communication and advocacy at the national level when cases arise.
Leveraging the Strength of “Unity”
However, speaking at the recent workshop titled “Using Trade Remedy Measures in the New Context – Dissemination of Newly Issued Legal Documents in the Field of Trade Remedies,” Ms. Tran Do Quyen, Deputy Director General of the Trade Remedies Authority of Vietnam, emphasized that alongside opportunities from international economic integration, Vietnamese enterprises are facing significant challenges from trade remedy cases initiated by foreign countries.
According to the Authority’s representative, many key products such as steel, textiles and garments, footwear, seafood, wood, and wood products have faced trade remedy investigations, causing considerable damage to export turnover, competitiveness, employment, and supply chain continuity.
In particular, the main difficulties lie in the increasingly complex trade remedy regulations of foreign countries. Large enterprises have not always concentrated sufficient resources when participating in trade remedy cases, while small enterprises face resource constraints, leading to passivity and negatively affecting investigation outcomes.
In the context of ongoing global economic volatility and rising trade protectionism, close coordination among management agencies, associations, and businesses will be the foundation for Vietnam to maintain export growth momentum and protect business interests.
According to Mr. Ngo Sy Hoai, practical experience from trade remedy investigations shows that enterprises cannot respond effectively on their own. Instead, there must be close linkage and coordination among enterprises within the same industry to create the collective strength of a “bundle of sticks” to respond effectively.
Implementing Decision No. 1659/QD-TTg on enhancing trade remedy capacity in the context of new-generation FTAs, the Trade Remedies Authority has emphasized that state management agencies need to strengthen coordination in information provision, training, and support for businesses.
In addition, associations are encouraged to truly play their role as focal points for consolidating industry voices, organizing advocacy, hiring lawyers, responding to questionnaires in a coordinated manner, and protecting the common interests of the entire industry. As for enterprises, they need to be more proactive in building clear accounting systems, managing risks, and maintaining regular communication with associations, exporters, and state management agencies./.
Source: Trade Remedies Authority of Vietnam.
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