Politico is reporting some of the details from the US/Vietnam trade deal:
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Final deal to be sealed “within coming weeks” with a substantial reduction in U.S. tariffs on Vietnamese imports.
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No specifics yet on tariff levels or final tariff rates.
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$8B deal: Vietnam to purchase 50 Boeing aircraft.
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$2.9B in U.S. agricultural goods (including poultry, pork, beef, and other products).
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Vietnam to offer preferential market access to U.S. agriculture and industrial goods.
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Vietnam will address non-tariff barriers, like intellectual property enforcement.
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The deal may impact other Asian trade negotiations, setting a high standard.
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The U.S. and Vietnam will set rules of origin to curb transshipment of Chinese goods.
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Draft hints at U.S. push for Vietnam to reduce reliance on Chinese imports, which make up 40% of Vietnam’s total imports.
The pressure on China is somewhat significant. The deal will put more pressure on China to make a deal with the US eventually if their work-arounds are stopped. It also could lead to higher inflation in the US of course.
This article was written by Greg Michalowski at www.forexlive.com.
