US and Vietnam agree on framework to boost trade and market access

US and Vietnam agree on framework to boost trade and market access

The United States and Vietnam have agreed on a framework for a new trade deal designed to boost bilateral commerce and market access.

Photo: VGP

According to a joint statement from the White House on October 26, the Framework for an Agreement on Reciprocal, Fair, and Balanced Trade aims to strengthen the economic ties between the two countries, giving exporters from both sides unprecedented access to each other’s markets. The new framework builds on the US-Vietnam Bilateral Trade Agreement, which was signed in 2000 and came into force in 2001.

The joint statement highlighted key terms of the agreement, saying Vietnam will grant preferential market access to all US industrial and agricultural exports, while the US will maintain tariffs on Vietnamese goods at 20 per cent and designate certain products for a zero per cent reciprocal rate.

Furthermore, the US and Vietnam will work constructively to address both countries’ interests in non-tariff barriers that affect bilateral trade in priority areas.

Vietnam has agreed to tackle several trade barriers, including accepting vehicles built to US safety and emissions standards, easing import licensing for US medical devices, simplifying regulatory approvals for US pharmaceuticals, fully upholding its obligations under international intellectual property treaties, and addressing US concerns over conformity assessment procedures.

The two countries have also pledged to remove and prevent barriers to US agricultural products in Vietnam, including recognising US regulatory oversight and currently agreed certificates.

They will finalise commitments on digital trade, services, and investment, and cooperate on intellectual property, labour, environment, customs and trade facilitation, good regulatory practices, and state-owned enterprise issues.

The joint statement said the US and Vietnam are committed to boosting supply chain resilience, tackling duty evasion, and collaborating on export controls.

It also noted recent commercial deals between US and Vietnamese companies in agriculture, aerospace, and energy. Vietnam Airlines will purchase 50 Boeing aircraft worth over $8 billion, while Vietnamese firms have signed 20 MoUs to buy US agricultural products valued at more than $2.9 billion.

In the coming weeks, the two countries will finalise the trade agreement, prepare it for signature, and complete domestic formalities before it enters into force.

VIR