U.S. and Vietnam Leaders Meet, Announce Efforts to Expand Trade and Investment
The U.S. and Vietnam issued a joint statement regarding the June 24, 2008 bilateral meeting between President Bush and Prime Minister Nguyen Tan Dung in which they discussed progress made since their last meeting in 2006 and committed to certain efforts to expand trade and investment, among other things.
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On this same day, Commerce Secretary Gutierrez and Prime Minister Dung presided over the signing of company contracts and other agreements between U.S. and Vietnamese companies.
(The U.S. is Vietnam's third largest trade partner and its top export market. In 2007, total two-way trade in goods between the U.S. and Vietnam was $12.53 billion, an increase of 29% from 2006 that also reflects a 73% increase in U.S. exports to Vietnam.)
Outcomes of President's Meeting with Prime Minister
The following are highlights of the trade and investment-related outcomes and discussions from the President and Prime Minister's meeting:
Bilateral investment treaty to be negotiated. The U.S. and Vietnam agreed to launch negotiations of a bilateral investment treaty, which will help promote cross-border investment by providing enhanced market access and strengthening the legal protections afforded to investors under the 2001 Bilateral Trade Agreement (BTA)1.
The legal protections provided by a BIT would include non-discriminatory treatment, the prohibition of unlawful expropriation, the right of free transfer of funds, greater transparency, and access to international arbitration to settle disputes with the Vietnamese government.
Food/medical product safety MOU signed. The two countries signed a memorandum of understanding (MOU) to enhance the safety of food, feed, drugs and medical devices for a three year period. Among other things, the governments will exchange information on their respective regulatory systems, conduct or participate in workshops and training, and undertake a detailed review of safety issues regarding fish and fishery products exported from Vietnam to the U.S.
Vietnam's GSP and market economy status requests. President Bush affirmed that the U.S. is "seriously reviewing" Vietnam's request to be designated as a beneficiary of the Generalized System of Preferences program, and he "acknowledged" Vietnam's request to be accorded Market Economy Status. (See ITT's Online Archives or 06/23/08 news, 08062310, for BP summary of the USTR initiating a review to consider designating Vietnam as a GSP beneficiary developing country (BDC).)
Ongoing issues: access for U.S. beef, etc. The two sides addressed areas of ongoing dialogue under the Trade and Investment Framework Agreement (TIFA),2 including market access for U.S. beef and Vietnamese agricultural products and implementation of World Trade Organization (WTO) commitments.
USTDA port feasibility study. The U.S. and Vietnam will collaborate and assist in improving Vietnam's transportation logistics system through a U.S. Trade and Development Agency (USTDA) port feasibility study.
Vietnamese exports of dragon fruit to U.S. The two sides are working closely to achieve compliance with U.S. requirements for the export of Vietnamese dragon fruit to the U.S.
Open skies agreement to be negotiated. The countries plan to commence negotiations on an Open Skies Agreement in October 2008.
Commerce Secretary and Prime Minister Preside Over Signings
Commerce Secretary Gutierrez and the Vietnam Prime Minister presided over the signing of several company contracts and other agreements that represent expanded access for U.S. companies to Vietnam's growing market.
Companies signing contracts with their Vietnamese counterparts were Alcoa, Motorola Inc. and Sabre Holdings. Companies that received investment licenses were SSA Marine and Gannon International. A Memorandum of Cooperation was also signed between Vietrade, the Vietnam trade promotion agency and the U.S. Foreign and Commercial Service.
1According to the State Department, the 2001 BTA helped set the stage for the success of subsequent bilateral and multilateral negotiations that led to the U.S. extending Permanent Normal Trade Relations to Vietnam in December 2006 and Vietnam's entry to the WTO on January 11, 2007. (See ITT's 07/14/00 and 07/21/00 news, 00071349 and 00072048, for BP summaries on this agreement.)
2The TIFA was signed on June 21, 2007 to provide a forum for the discussion and resolution of bilateral trade and investment issues. (See ITT's Online Archives or 06/25/07 news, 07062599 3, for BP summary.)
U.S.-Vietnam joint statement (dated 06/25/08) available at http://www.whitehouse.gov/news/releases/2008/06/20080625-4.html
USTR fact sheet on BIT (posted 06/26/08) available at http://www.ustr.gov/assets/Document_Library/Fact_Sheets/2008/asset_upload_file719_14954.pdf
HHS press release (dated 06/24/08) available at http://www.hhs.gov/news/press/2008pres/06/20080624a.html
State Dept. fact sheets (dated 06/24/08) available at http://www.state.gov/r/pa/prs/ps/2008/jun/106222.htm and at http://www.state.gov/r/pa/prs/ps/2008/jun/106220.htm
Commerce Dept. press release (dated 06/24/08) available at http://www.commerce.gov/NewsRoom/PressReleases_FactSheets/PROD01_006716