In 1999, total merchandise trade (two-lane and two-lane) between the United States and Vietnam was $900 million. Exports to Vietnam have increased significantly in recent years, from $4 million in 1992 to $291 million in 1999. market access. The final BTA provides for Vietnam to lower tariffs on some 250 products, about four-fifths of which are agricultural products. Press reports in 1999 indicated that the agreement contained in principle 330 tariff positions planned for tariff reduction. However, a U.S. official involved in negotiating the agreement argued that this figure was incorrect and stated that the tariff changes in Schedule E of the final ATO were much the same as those agreed in 1999. After the victory of communist North Vietnam over U.S.-backed South Vietnam in 1975, the United States ended virtually all economic exchanges with unified Vietnam. Trade restrictions included not only those previously imposed only in North Vietnam (see next section), but also the cessation of bilateral humanitarian aid, opposition to financial assistance from international financial institutions (such as the World Bank), a travel ban on the United States in Vietnam and the bilateral trade embargo.
Many supporters of the agreement also argued that the bilateral trade pact would push Vietnam towards a more democratic society by forcing the government to implement market-based reforms, weaken the government`s strict political controls, consolidate the rule of law, further integrate Vietnamese businesses into the global economy and strengthen individuals economically. Supporters of the BTA also stressed that the agreement will help bring Vietnam closer to wto compliance and facilitate Hanoi`s eventual accession to the WTO. As soon as Vietnam joins the WTO, its trade policy will be subject to even greater international control and discipline. From a strategic point of view, BTA supporters have argued that the U.S. S.-Vietnam BTA, as well as the recent BTAs with Cambodia and Laos, will promote regional stability by smoothing indochina`s integration into the regional and global community. (13) Source: U.S. International Trade Commission. The data refer to trade in goods on the basis of tariffs.
November 27, 1999 Author`s interview with trade policy expert Craig VanGrasstek, President, VanGrasstek Communications. Bilateral Economic Relations Since the U.S.-Vietnam bilateral trade agreement came into force in 2001, trade between the two countries and U.S. investment in Vietnam has increased significantly. The United States and Vietnam have a framework agreement on trade and investment; they have also signed agreements in the textile, air and sea transport sector. U.S. exports to Vietnam include agricultural products, machinery, wire/tissues and vehicles. U.S. imports from Vietnam include clothing, footwear, furniture and sheets, agricultural products, seafood and electrical machinery.