Vietnam Signs Trade Pact With U.S.
A trade pact signed between Vietnam and the United States paves the way for the Southeast Asian country to enter the World Trade Organization.
The trade pact, which must be approved by the U.S. Congress before it can be implemented, would eliminate U.S. quotas on Vietnamese apparel and textile goods, and reduce Vietnamese tariffs on many U.S. goods.
Vietnamese Deputy Trade Minister Luong Van Tu and Deputy U.S. Trade Representative Karan Bhatia signed the agreement May 31 in a ceremony in Ho Chi Minh City, formerly known as Saigon.
Vietnam has agreed to eliminate all tariffs and quotas on information technology products such as semiconductors and computers, as well as on aircraft products. More than 94 percent of U.S. exports of manufactured goods will face tariffs of 15 percent or less.
In addition, the Vietnamese government agreed to end a $4 billion government program to improve its textile and apparel industry, which the United States considered a subsidy.
—Deborah Belgum
