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Politico: Vietnam deal to be sealed in subsequent few weeks. Will be framework for others

Politico is reporting some of the details from the US/Vietnam trade deal:

  • Final deal to be sealed “within coming weeks” with a substantial reduction in U.S. tariffs on Vietnamese imports.

  • No specifics yet on tariff levels or final tariff rates.

  • $8B deal: Vietnam to purchase 50 Boeing aircraft.

  • $2.9B in U.S. agricultural goods (including poultry, pork, beef, and other products).

  • Vietnam to offer preferential market access to U.S. agriculture and industrial goods.

  • Vietnam will address non-tariff barriers, like intellectual property enforcement.

  • The deal may impact other Asian trade negotiations, setting a high standard.

  • The U.S. and Vietnam will set rules of origin to curb transshipment of Chinese goods.

  • 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.

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