Businesses require more knowledge of WTO rules

09 Nov '10

2 min read

In a recent survey conducted by the Viet Nam Chamber of Commerce and Industry, 66 percent of Vietnamese export businesses confessed that they were unsuccessful in comprehending the fundamental content of WTO rules. 50 percent of Vietnamese businesses were ignorant about the WTO commitments associated with their respective industries or business domains.

The country has been caught up in 42 trade disagreements since 1994, 35 of which were related with anti-dumping actions.

An expert from the garment sector requested the local companies to increase their aggressiveness by improving the quality of their commodities rather than by reducing the prices of their commodities. The local companies need to improve their financial as well as accounting systems as per the global standards. All these steps would help in avoiding the measures taken by other business partners on local exporters.

More thrust has been given by an expert from the garment industry on the significance of mutual assistance among businesses, mostly within the same industry. Business defense lawsuits could influence the whole industry, therefore the endeavor taken by a small number of businesses is not adequate.

Exporters are required to keep qualified legal advisors to guide them on the intricate WTO related legal matters. The garment industry lacks the essential knowledge to handle the business disputes in spite of the fact that it has not faced any anti-dumping lawsuits till date.

The country has been unsuccessful in using the business defense measures for its own advantage and to save its local industries in a similar manner, in which the other nations had accomplished the same, said an expert.

The expert further recommended that associations as well as businesses should be more practical in using legal measures under the WTO rules to increase their competitive ability in the local market.

Fibre2fashion News Desk-India

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