The decision came after a series of actions taken by the WTO after the US accused Vietnam of selling its frozen shrimps at prices which are lowers than prices on the Vietnamese market.

In its decision, the WTO said the US "has acted inconsistently with provisions of the Anti-Dumping Agreement and the general Agreements on Tariffs and Trade" and promised to solve the dispute in accordance with these agreements.

The WTO said the US's so-called 'zeroing', a framework for calculating dumping margins, was against WTO agreements.

Vietnam has argued that the zeroing method creates a large dumping margin for its products, hiking tariffs and damaging Vietnamese shrimp exporters.

The US imposes the anti-dumping tariffs of between 4.13 and 25.76 percent on most Vietnamese shrimp exporters.

The US began its anti-dumping lawsuits against shrimp exporters from Vietnam and 11 other countries in 2003, after a similar lawsuit against Vietnamese catfish.

Saying Vietnam is yet to be a market economy, the US rejects the production and domestic prices proposed by Vietnamese exporters. Instead, it uses the reference prices of a similar market as Vietnam's.

Last February, Vietnam filed a lawsuit against the American anti-dumping tariffs on its frozen shrimps.

The case has won interest and attention from China, India, Japan, Mexico and the European Union. In February this year, China also launched a similar suit.

The WTO rules allow members to impose duties on imports if their domestic manufacturers complain that their businesses are threatened by the imports.

Argentina, Brazil, Canada, Ecuador, the EU, Japan, Mexico, South Korea and Thailand have all won zeroing cases at the WTO.

In January, the US promised to change the method with these partners.

But in March, the US International Trade Commission decided to continue import duties for five more years on shrimps from Thailand, its major supplier, as well as from China, India, Brazil and Vietnam.

Tuoi Tre - July 14, 2011

Vietnam welcomes win in anti-dumping case against US

Hanoi - The success of the first stage of Vietnam's case against the United States over anti-dumping measures on frozen shrimps has given confidence to Vietnamese exporters, an official said Thursday.

'By winning the case, it creates more favourable conditions for the export of Vietnamese shrimp in the future,' said Truong Dinh Hoe, general secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP).

'It also helps US importers feel more secure when they buy Vietnamese seafood,' he said.

The World Trade Organisation on Monday issued a report that upheld two of three components in Vietnam's claim that Washington increased its estimate of the degree of dumping on its markets using a method inconsistent with international trade rules.

Dumping involves the sale of items abroad at less than the cost price in their domestic market.

In response to the announcement, VASEP said it would pursue the country's claim against the anti-dumping measures to protect the interests of Vietnamese shrimp exporters.

VASEP and consultants said if Vietnam won the case, frozen shrimp exports would enjoy immunity from paying advances related to the anti-dumping scheme and exporters would be likely to be fully exempted from anti-dumping tariffs.

Last year, Vietnam's shrimp export revenues reached 2 billion dollars. The US is its second-largest market after Japan.

Deutsche Presse Agentur - July 14, 2011