The Vietnam Agreement with the US: What You Need to Know
In recent years, Vietnam has become a major player in international trade and commerce. One of the most significant developments in this regard has been the Vietnam Agreement with the United States, which was signed in 2015 and came into force in 2016. But what exactly does this agreement entail, and what does it mean for businesses and individuals operating in Vietnam and the US? In this article, we`ll take a closer look.
Firstly, it`s important to understand that the Vietnam Agreement is officially known as the Trans-Pacific Partnership (TPP). This is a trade agreement that was negotiated between 12 nations, including the US and Vietnam, under the Obama administration. The aim was to reduce trade barriers and promote economic growth across the Asia-Pacific region. However, the TPP came under heavy criticism during the 2016 US presidential campaign, with both Hillary Clinton and Donald Trump opposing it on various grounds. Eventually, President Trump withdrew the US from the agreement in 2017, citing concerns about the impact on American workers and industries.
Despite the US withdrawal, the other 11 nations went ahead with the TPP and rebranded it as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Vietnam became one of the first countries to ratify the CPTPP, which came into force in 2018. The agreement includes provisions on intellectual property, investment, labor rights, environmental protection, and more. It also eliminates or reduces tariffs on goods and services traded between member countries.
So, what does all this mean for Vietnam`s relationship with the US? Although the US is no longer part of the TPP, Vietnam`s trade ties with the US remain strong. In fact, bilateral trade between the two countries has been steadily increasing over the years, with Vietnam exporting more goods to the US than it imports. The US is also one of the largest sources of foreign investment in Vietnam, with many American companies setting up operations in the country to take advantage of its low labor costs and strategic location.
Moreover, the Vietnam Agreement has had some positive effects on Vietnam`s economy and society. For example, the agreement includes provisions on labor rights and environmental protection, which are important issues in Vietnam. The country has been criticized in the past for its treatment of workers and its poor record on pollution. The Vietnam Agreement provides a framework for improving these areas and encourages Vietnam to adopt international standards.
In conclusion, the Vietnam Agreement with the US (or TPP/CPTPP) is a complex issue with many implications for businesses, workers, and the environment. Although the US has withdrawn from the agreement, Vietnam`s trade relationship with the US remains strong. The agreement also provides a platform for addressing important issues such as labor rights and environmental protection. As Vietnam continues to grow and modernize, it will be interesting to see how its relationship with the US and the rest of the world evolves.