On behalf of the Ministry of Industry and Trade of Viet Nam, H.E. Tran Quoc Khanh, Deputy Minister of Industry and Trade of Viet Nam answering questions by Australian Broadcasting Corporation’s Journalist, Mr. Marty McCarthy (regarding the agricultural trade between Viet Nam and Australia following the Australian Government’s decision to suspend uncooked prawn imports from Viet Nam for the reason of white spot disease outbreak in Australia).
Journalist Marty McCarthy: What does Viet Nam think of the Australian Government’s decision to ban raw imports from Viet Nam?
H.E. Deputy Minister Tran Quoc Khanh: The Ministry of Industry and Trade of Viet Nam shares the concern of the Australian Government and Australian People about the outbreak of white spot disease in Australian prawn farms. In this regard, for the safety of Australian prawn farming industry, we are supportive to actions taken by the Australian Government in applying necessary measures to control the outbreak, to prevent the spreading as well as to minimize the risk of contagious viral infection of white spot disease into Australia from the outside world.
However, the fact that the temporary ban on uncooked prawns was issued by the Australian Government without giving sufficient time, by an advance warning, for Vietnamese prawn exporters to be aware of and take needed actions to avoid such large economic losses, in our view, is not in line with common practices and the spirit of nurturing and enhancing the existing good trade relationship between Viet Nam and Australia.
It is also needed to emphasize that Vietnamese businesses processing and exporting prawn to Australia possess state-of-the-art producing and processing technologies which conform to international standards such as ASC, BAP, Global Gap. Vietnamese prawn products have also obtained import permit to many high demanding markets in terms of food quality and safety, such as Japan, the EU and the United States. Besides, all Vietnamese companies that export prawns to Australia were already licensed and certified by the Australian Quarantine and Inspection Service (AQIS) and the Biosecurity Australia.
For this rationale, together with our willingness to take additional measures as required by the Australian Government to tighten the quality management over the exports of Vietnamese uncooked prawns and prawn products to Australia in order to make sure that the prawn exports are free from white spot disease, the import suspension would not be necessary.
In short, we are willing to support the Australian Government’s decision on prawn import suspension but only when and in the case that other measures, which have less negative impacts on trade, have proved to be ineffective or useless.
Does Viet Nam want the Australian Government to cancel the ban?
The prawn import suspension imposed by the Australian Government has been causing serious damage to the prawn farmers and exporters in Viet Nam. Therefore, H.E. Minister of Industry and Trade and H.E. Minister of Agriculture and Rural Development of Viet Nam have sent official Letters to the Hon. Deputy Prime Minister, Minister of Agriculture and Natural Resources of Australia, proposing that Australia reconsider this decision. That, however, does not imply that we push aside the safety of Australian prawn farming industry. Viet Nam is willing to cooperate with Australia in order to strictly control the quality of uncooked prawn consignments exported to Australia. This means we call for the close cooperation by the two Sides in taking alternative measures that have less negative impacts on our bilateral trade while still ensure the safety of Australian prawn farming industry and the environment in Australia.
What is the impact of the ban on prawn farmers and exporters in Viet Nam, who send prawns to Australia?
The volume of Viet Nam’s prawn exports to Australia is not so big but for Vietnamese farmers, those who have already been highly vulnerable due to their low income, the suspension has made serious impacts on their earnings, particularly for the households in areas that specialize in farming and processing prawn for Australia market (marinated prawns, which are processed according to Australian market’s requirements (recipe), can not be consumed in other markets and face difficulties in being sold in domestic market). In the long run, this suspension may affect the reputation of Vietnam’s prawns exported to other markets, and, as a result, cause a greater loss for Vietnamese prawn farmers, manufacturers and exporters.
According to statistics by the Viet Nam Association of Seafood Exporters and Producers (VASEP), there are currently 08 Vietnamese companies involved in exporting uncooked prawns to Australia. In 2015, Australia imported uncooked prawns from Viet Nam with a value of over USD 41 million. This volume might turn out to be an insignificant figure for a developed country but it is as much as the total annual income of thousands of farmers in developing countries like Viet Nam. Moreover, a number of Vietnamese exporters specializing in Australian market are facing the risk of going bankrupt due to the suspension.
Is the Australian Government’s decision to ban imports from Vietnam fair under the World Trade Organisation rules of bilateral trade?
According to WTO rules, all WTO members should ensure that any SPS measures should be applied only to a necessary extent based on accurate and reliable scientific evidence and should not be maintained in the absence of this evidence. Meanwhile, Vietnamese uncooked prawn products have been being exported to many countries around the world without facing any import suspension.
In the case that Australia continues to maintain the ban, Viet Nam requests Australia to provide as soon as possible adequate scientific evidence that shows a causal relationship between the prawn imports from Vietnam and the outbreak of white spot disease in Australia. Some Vietnamese businesses view the suspension as going beyond the necessary extent provided for in the WTO Agreement on SPS Measures. We are still studying this point of view of Vietnamese companies.
Will the Vietnamese Government ban live cattle imports from Australia, in response to the Australian Governments ban on Vietnamese prawns?
Viet Nam has always attached great importance to and been undertaking activities to enhance the established comprehensive partnership with Australia towards a strategic partnership, including the enhanced trade in safe agricultural products. We are informed that the Ministry of Agricultural and Rural Development of Viet Nam has had meetings with concerned Australian Authorities. Both Sides have engaged in constructive discussions to seek a solution to this matter on the basis of respecting the safety of Australian prawn farming industry and in the spirit of developing the traditional good friendship between Viet Nam and Australia, while taking into consideration the unnecessary losses of Vietnamese prawn farmers and exporters caused by the unwarmed prawn suspension.