The United States of America (the United States) and the Socialist Republic of Viet Nam (Viet Nam) have agreed to a Framework for an Agreement on Reciprocal, Fair, and Balanced Trade to strengthen our bilateral economic relationship, which will provide both countries’ exporters unprecedented access to each other’s markets. The Agreement on Reciprocal, Fair, and Balanced Trade will build upon our longstanding economic relationship, including the U.S.-Viet Nam Bilateral Trade Agreement signed in 2000 that entered into force in 2001.
Key terms of the Agreement on Reciprocal, Fair, and Balanced Trade between the United States and Viet Nam will include:
- The United States and Viet Nam will work constructively in an effort to address both countries’ interests in non-tariff barriers that affect bilateral trade in priority areas.
- Viet Nam has agreed to address many such barriers including, for example, by accepting vehicles built to U.S. motor vehicle safety and emissions standards; addressing import licenses for U.S. medical devices; streamlining regulatory requirements and approvals for U.S. pharmaceutical products; fully implementing Viet Nam’s obligations under certain international intellectual property treaties to which it is a Party; and addressing U.S. concerns with conformity assessment procedures.
- The United States and Viet Nam have committed to address and prevent barriers to U.S. agricultural products in the Vietnamese market, including with regard to U.S. regulatory oversight and acceptance of currently agreed certificates issued by U.S. regulatory authorities.
- The United States and Viet Nam will finalize commitments on digital trade, and services and investment
- The United States and Viet Nam will engage to address intellectual property, labor, environment, customs and trade facilitation, good regulatory practices, and any distortionary behaviors of state-owned enterprises.
- The United States and Viet Nam are committed to strengthening cooperation towards our shared goals to enhance supply chain resilience, including addressing duty evasion and cooperating on export controls.
- In addition, the United States and Viet Nam take note of recent commercial deals between U.S. and Vietnamese companies in the areas of agriculture, aerospace, and energy.
- Vietnam Airlines has agreed to purchase 50 aircraft from Boeing which is worth over $8 billion.
- Vietnamese companies have signed twenty memorandums of understanding with U.S. companies to purchase U.S. agricultural commodities, with a total estimated value of over $2.9 billion.
In the coming weeks, the United States and Viet Nam 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.