The Vietnam US Bilateral Trade Agreement ( BTA) has boosted trade between the two countries since it was enacted 10 years ago. Today, reporter Anh Huyen looks at the agreement over the past decade.
It took the US and Vietnam several years of negotiation to reach an agreement due to many differences including painful memories of a devastating war and mutual distrust. Two years after the agreement was signed on December 10, 2001, the US became Vietnam’s leading export market. Over the past decade, two way trade turnover has increased by 1,200%, from 1.5 billion USD to 20 billion USD. Vietnam’s principal exports to the US include garments, wood furniture and footwear. Vietnam’s imports from the US have also increased sharply with machinery, appliances and animal feed being key items. The trade balance has favored the Vietnamese side.
Economists say that, in addition to trade and investment benefits, the Vietnam US Bilateral Trade Agreement has created opportunities for people exchange and paved the way for Vietnam to join the World Trade Organization in 2007. Lessons learned from negotiating the BTA with the US helped Vietnam succeed in negotiating with the US in its bid to join the WTO. At a seminar in Hanoi last week on “Việt Nam-US trade ties after BTA: Looking back to the past – forward to the future”, former Deputy Prime Minister Vu Khoan described the BTA as the world’s longest bridge crossing the Pacific. Mr Khoan said: “In addition to commercial trade across this bridge, there have also been exchanges between the citizens and leaders of both countries. Over the past ten years, there have been a number of senior level meetings between the two countries, reflecting closer ties.”
The two countries have strengthened bilateral cooperation and clarification of trade and investment principles. Along with 7 other partners, the two are now negotiating a Trans-Pacific Partnership which will serve as a foundation for economic integration in the Asia Pacific Region. This integration is expected to boost the US and Vietnamese economies, generate jobs and increase bilateral ties. If the Vietnam US Bilateral Trade Agreement has contributed greatly to economic changes in Vietnam, the Trans Pacific Partnership will help Vietnam integrate further into the world economy, increase its export and trade activity, modernize its services, accelerate its SME privatization and expand its markets. The TPP will also bring valuable commitments by the US to exempt Vietnamese garments, footwear and seafood from import taxes. Ms. Jean Grier, senior official of the US Trade Representative Office in Vietnam says Vietnam and other developing Asian countries will enjoy great trade benefits in penetrating the markets of Trans Pacific Partners. Ms Jean Grier said: “First, it was important. It would mean new market access opportunities for your goods, services and supplies. When another countries open up their markets to you, it means your company’s goods and services will be put on the same base as the domestic products of other countries. Another benefits of the agreement include cost saving and increased competition.”
In a press release marking the 10th anniversary of the signing, US Ambassador to Vietnam David Shear expressed his hope that the next decade will lift the Vietnamese US relationship to a full-fledged strategic partnership.
Anh Huyen