US And Vietnam Issue Joint Statement On Framework For Reciprocal Trade Agreement

The United States and Vietnam have announced a joint framework for a trade agreement focused on reciprocal, fair, and balanced trade. This announcement coincided with US President Donald Trump and Prime Minister Phạm Minh Chính's participation in the 47th ASEAN Summit held in Kuala Lumpur, Malaysia. The proposed agreement aims to enhance the economic ties established by the US-Vietnam Bilateral Trade Agreement of 2000, which took effect in 2001.

According to the joint statement reported by the Vietnam News Agency (VNA), Vietnam will grant preferential market access to nearly all US industrial and agricultural exports. Meanwhile, the US will maintain a 20% tariff on Vietnamese goods as per Executive Order 14257 from April 2, 2025. Additionally, certain products listed in Annex III of Executive Order 14346 from September 5, 2025, will receive a zero percent tariff rate.

Both nations are committed to addressing non-tariff barriers impacting bilateral trade in key areas. Vietnam has agreed to tackle several such barriers by accepting vehicles that meet US motor vehicle safety and emissions standards. It will also address import licenses for US medical devices and streamline regulatory requirements for US pharmaceutical products.

Furthermore, Vietnam is committed to fully implementing its obligations under specific international intellectual property treaties it has joined. The country will also address US concerns regarding conformity assessment procedures. These efforts aim to facilitate smoother trade relations between the two countries.

The agreement includes commitments to prevent barriers to US agricultural products entering the Vietnamese market. This involves recognizing US regulatory oversight and accepting certificates issued by US authorities. Such measures are expected to enhance agricultural trade between the two nations.

Under this framework, Vietnam Airlines has agreed to purchase 50 aircraft from Boeing, valued at over $8 billion. Additionally, Vietnamese companies have signed 20 memorandums of understanding with US firms for purchasing agricultural commodities worth more than $2.9 billion.

Finalising the Agreement

In the upcoming weeks, both countries will work towards finalizing this agreement. They aim to prepare it for signature and complete domestic formalities before it comes into effect. This process underscores their commitment to strengthening economic ties through mutually beneficial trade practices.

This collaborative effort marks a significant step in enhancing trade relations between the United States and Vietnam. By addressing various trade barriers and fostering cooperation in key sectors, both nations aim to build a more robust economic partnership.

With inputs from WAM