Luận Văn Eu anti-dumping lawsuit against vietnam - what can be learnt from the footwear case?

Eu anti-dumping lawsuit against vietnam - what can be learnt from the footwear case?
ACKNOWLEGEMENTS

First and foremost, I would like to express my special thanks to my supervisor, Phan Thi Hien Giang, MSCs., for her professional and inspirational suggestions, corrections and advice in bringing this thesis to completion.
I am also grateful to Hanoi Foreign Trade University, especially those teachers at the English Faculty, for giving me the opportunity to study in such an academically stimulating program in Bachelor of Business English. The course has provided me with comprehensive knowledge and useful skills in business and foreign trade so that I am able to fulfill this thesis and have the courage to embark on the challenging journey of life-long learning.
My sincere thanks are due to the World Bank Library and National Library, the librarians, staff and the administrative office of the Hanoi Foreign Trade University for providing me the valuable materials and assistance.
I am deeply indebted to my close friends, my relatives and my boyfriend who have always supported and encouraged me to finish the thesis.
Last but of course not least, I would like to share this moment of happiness and sense of achievement with my parents and my brother, who have always stood by my side and rendered me enormous support and unfaltering love during the whole process of my study.


ACKNOWLEGEMENTS. 1
INTRODUCTION 4
Background to the study. 4
Objective of the study. 4
Research questions. 5
Structure of the thesis. 5
Scope of the study. 5
Research methodology. 5
Chapter 1. 7
LITERATURE REVIEW . 7
1.1. Dumping in international trade. 7
1.1.1. Definition. 7
1.1.2. Impacts on importing countries and international trade. 8
1.1.2.1. Impacts on importing countries. 8
1.1.2.2. Impacts on international trade. 8
1.2. Anti-dumping law 9
1.2.1. WTO's anti-dumping law 9
1.2.1.1. Determination of dumping. 10
1.2.1.2. Anti-dumping measures. 14
1.2.2. EU's anti-dumping law 16
1.2.2.1. Determination of dumping. 17
1.3. Comparison between WTO and EU anti-dumping laws. 22
Chapter 2. 25
THE FOOTWEAR CASE 25
2.1. Overview of the Vietnam footwear industry. 25
2.1.1. The importance of Vietnam’s footwear industry. 25
2.1.2. Footwear exports to the European Union. 30
2.2. Overview of the EC's anti-dumping petition. 31
2.3. The petitioner's arguments. 32
2.3.1. Market economy treatment33
2.3.1.1. Business decisions. 34
2.3.1.2. Accounting. 35
2.3.1.3. Assets and 'carry over'36
2.3.1.4 Legal environment and currency exchange. 37
2.3.2. Individual treatment37
2.3.3. Vietnam's selling under the normal value. 37
2.3.4. Injury. 39
2.3.4.1. Macro-economic indicators. 40
2.3.4.2. Micro-economic indicators. 41
2.4. The subject country's arguments. 43
2.4.1. Market-economy treatment44
2.4.2. Level of ‘injury’ to EU producers. 45
2.4.3. Inappropriate choice of surrogate country. 49
2.4.4. Effects on interest of the Community. 50
2.5. Summary. 51
Chapter 3. 54
RECOMMENDATIONS AND LESSONS LEARNT 54
3.1. Conclusions and recommendations. 54
3.1.1. Diversify the markets outside the EU 56
3.1.2. Diversify the product range. 58
3.1.3. Enhance model of business transfer58
3.1.4. Improve competitiveness. 59
3.2. Lessons learnts. 60
3.2.1. Fully understanding on international trade law concerning dumping issue. 60
3.2.2. Strengthen market economy in Vietnam 62
3.2.3. Domestic enterprises must be well-prepared. 63
3.2.4. Create good public relation. 64
CONCLUSION 66
BIBLIOGRAPHY 67

INTRODUCTION
Background to the study
In recent years, a great number of bilateral and multilateral trade agreements have been signed between Vietnam and other countries and international organizations, which, among other things, have provided greater access for Vietnamese goods to the global market. However, several kinds of Vietnam exports have been accused of being sold at dumped prices in some foreign markets. In particular, anti-dumping tariff was imposed on Vietnam by the European Union on glutamate in 1998, by Poland on gas lighter in 2000, by Canada on garlic in 2002, by the US on catfish in 2002, shrimp (2003), woodwork (2004) and again by the EU on bicycles in 2004. On July 2005, the European Commission officially lodged yet another dumping lawsuit against Vietnamese footwear products exported to the EU market. Such series of lawsuits has raised massive concern for Vietnamese producers, as it has had a negative impact on international economic integration process of Vietnam, as well as shown that Vietnam has not adequately prepared for a bigger "playing field".
Active integration inevitably entails proactive study about foreign markets. Nevertheless, international markets in general, and the EU market in particular have different regulations and trading practice that requires deep understanding to defend oneself from implicit risks.