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US – Vietnam agree to boost trade, tariffs on some Vietnamese goods may be removed
HANOI/KUALA LUMPUR, Oct 26 (Reuters) – The United States and Vietnam will finalise a trade agreement in the coming weeks that will maintain 20% tariffs on most Vietnamese goods but lift duties on certain products that will be decided at a later stage, the White House said on Sunday.
In return Vietnam committed to offering “preferential access” for most all U.S. goods.
The two countries have agreed to a framework for the agreement on “reciprocal, fair and balanced” trade between the two nations, the countries said in a joint statement released by the White House.
U.S. President Donald Trump in July announced that the United States would place a 20% tariff on many Vietnamese products, as well as a 40% levy on trans-shipments through Vietnam from third countries.
US TARIFFS TO FALL TO ZERO ON SOME VIETNAM PRODUCTS
In the new deal, the United States will maintain its tariff rate on Vietnamese goods at 20%, but will identify products where the levy can be reduced to zero.
The agreement “will provide both countries’ exporters unprecedented access to each other’s markets”, the Sunday statement said.
Last year, Vietnam, had a trade surplus of $123 billion with the United States, its largest export market.
“In the coming weeks, the United States and Vietnam will work to finalize the Agreement on Reciprocal, Fair, and Balanced Trade, prepare the Agreement for signature, and undertake domestic formalities in advance of the Agreement entering into force,” the statement said.
US AND VIETNAM ADDRESS NON-TARIFF BARRIERS
The United States and Vietnam will also work to address both countries’ interests when it comes to non-tariff barriers, it said.
Vietnam has agreed to accept vehicles built to U.S. motor vehicle safety and emissions standards, address the issue of import licenses for U.S. medical devices, and streamline regulatory requirements and approvals for U.S. pharmaceutical products.
It will also fully implement Vietnam’s obligations under certain international intellectual property treaties, it added.
“The United States and Vietnam are committed to strengthening cooperation towards our shared goals to enhance supply chain resilience, including addressing duty evasion and cooperating on export controls,” it said.
VIETNAM TO BUY MORE US PRODUCTS
Vietnam has in recent months promised to boost its imports of American products to narrow the trade gap between the two countries.
Source: Reuters
