CRS Says Growing Trade with Vietnam Accompanied with Problems
The Congressional Research Service has issued a report stating that Congress may play an important role in a number of bilateral trade issues that have emerged between Vietnam and the U.S.
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According to the report, bilateral trade between the countries may increase if both nations become members of the Trans-Pacific Strategic Economic Partnership Agreement (TPP). However, Vietnam is also a party to negotiations to form a larger pan-Asian regional trade association based on the Association of Southeast Asian Nations (ASEAN) that could exclude the U.S. and prove to be an alternative to the TPP. CRS reports there have also been problems with U.S. imports of specific products from Vietnam, such as catfish-like fish known as basa or tra, footwear, furniture, and electrical machinery, which could generate future tension between the countries.
CRS states that the 112th Congress may play an important role in addressing Vietnam's application for acceptance into the U.S. Generalized System of Preferences (GSP) program and its participation in negotiations of a Bilateral Investment Treaty (BIT) with the U.S. Congress may also weigh its designation as a market or non-market economy. Additionally, if current growth trends continue, Congress may be asked to act on the rising amount of footwear, furniture, and/or electrical machinery being imported from Vietnam.
(See ITT's Online Archives or 06/06/11 news, 11060622, for BP summary of Vietnam Customs reporting that the U.S. was Vietnam's top exporting market in April 2011.)
(CRS R41550, dated 04/05/11)