Vietnam to impose 34% antidumping tax on sugar imports from Thailand

Vietnam said on Tuesday, February 9, it plans to impose antidumping duties on raw sugar that originates in Thailand, claiming soaring imports are undermining its domestic sugar industry.

The Vietnamese industry and trade ministry said a 33.88% levy would apply on Thai sugar, but a timeframe for when it will come into force has yet to be decided.

Vietnam removed import duties on sugar imported from Southeast Asian countries in 2020 in accordance with the commitments of the ASEAN Trade in Goods Agreement (ATIGA).

However, provisions allow ASEAN countries to impose import duties to protect the rights and interests of their domestic industries against anticompetitive behavior.

Vietnam’s decision to reintroduce duties, specifically for raw sugar, comes after the ministry conducted an antidumping investigation that started last September, following complaints by Vietnam sugar industry officials.

The probe’s preliminary results showed that subsidized and dumping of sugar from Thailand surged to 1.3 million tons in 2020, up 330.4% from 2019, the ministry said in a statement.

“A series of domestic sugar factories have been closed, causing 3,300 employees to lose their jobs and having negative impacts on 93,225 farmer households,” the statement added.

“An antidumping tax of 33.88% will be imposed on raw sugar originated from Thailand and will be reviewed regularly.”

The ministry’s investigation is still ongoing and will conclude in the 2nd quarter. The Vietnamese side will work with relevant agencies to make a final decision on when it will introduce the duty, the ministry said. – Rappler.com