The United States of America and Vietnam have finalized a trade agreement that provides for the establishment of mutual tariffs at 20%. The two countries have agreed on "mutual, fair, and balanced" trade between the two countries, according to a joint statement released by the White House, UNN reports.
Details
US President Donald Trump announced in July that the United States would impose 20% tariffs on many Vietnamese goods, as well as 40% tariffs on transshipments through Vietnam from third countries. In the new agreement, the United States will maintain its mutual tariffs at 20% on Vietnamese goods, but will identify goods for which the tariff can be reduced to zero.
In addition, Vietnamese airline Vietnam Airlines will purchase 50 aircraft from Boeing worth over $8 billion.
It is noted that the agreement will provide exporters from both countries with unprecedented access to each other's markets. Last year, Vietnam had a trade surplus with the United States, its largest export market, of $123 billion.
In the coming weeks, the United States and Vietnam will work to finalize the Agreement on Mutual, Fair, and Balanced Trade, prepare the Agreement for signing, and complete domestic formalities before the Agreement enters into force.
The US and Vietnam will also work to address the interests of both countries regarding non-tariff barriers, the report said.
Vietnam has agreed to accept vehicles manufactured to US vehicle safety and emissions standards, address US medical device import license issues, and streamline regulatory requirements and approvals for US pharmaceutical products.
It will also fully implement Vietnam's obligations under certain international intellectual property treaties, the report added.
The United States and Vietnam seek to strengthen cooperation to achieve our shared goals of enhancing supply chain resilience, including combating tariff evasion and cooperating on export controls.
Addition
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