On Monday, December, 10th, the Agreement between the United State of America and the Socialist Republic of Vietnam on Trade Relations (BTA) entered into effect when Vietnam’s Minister of Trade Vu Khoan and US Trade Representative Robert Zoellick exchanged official letters implementing the pact. Signed on July 13, 2000, this landmark agreement marks a major step forward in Vietnam’s efforts to integrate with the global economy.
Under the BTA, the US grants Vietnam “normal trade relations” status (also known as “MFN”), removing Vietnam from a small list of countries denied this, including North Korea, Afghanistan, Serbia and Cuba. With the BTA’s entry into force, U.S. tariffs on imports from Vietnam have dropped from an average of 40% to an average rate of 3%, as of December 10th, allowing Vietnamese exporters to compete on level terms in the U.S. market.
