The United States and Vietnam have reached agreement in principle on a bilateral market access agreement that will lower trade barriers to a wide range of US industrial and agricultural products and services and help clear the way for Vietnam's accession to the World Trade Organization (WTO).
Bilateral Agreement will enhance US access to fast-growing Vietnamese market.
- With an ambitious program of economic reform underway, Vietnam is the fastest growing major economy in Southeast Asia. (GDP has increased almost 50 percent since 2001.) Vietnam is, in particular, a growing market for US exports, which have increased over 150 percent since 2001. Last year alone saw increase of 24 percent to $1.2 billion.
- On manufactured goods: under the agreement, about 94 percent of Vietnam's imports from the United States will face duties of 15 percent or less.
On key products in the construction equipment, pharmaceuticals and aircraft sectors we negotiated low duties of 0-5 percent.
Vietnam, like other WTO applicants, has agreed to join the ITA and to embrace more than 75 percent of the chemical harmonization initiative.
Vietnam has also committed to implement low duties immediately upon accession on nearly all medical equipment.
- On agricultural goods: under the agreement, approximately three-fourths of US agricultural exports to Vietnam will face bound duty rates of 15 percent or less.
Products subject to thesereduced tariffs include cotton, selected beef, pork, and variety meats, whey, grapes, apples and pears, and soybeans.
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