U.S., Vietnam Pact Ushers In Free Market Trade

An agreement signed yesterday between the United States and Vietnam will mean an economic boost for the communist nation and a new market for U.S. goods. On Friday, Vietnamese Trade Minister Vu Khoan praised the deal according to Associated Press reports.

“Internationally, this is an important step in our integration into the world economy,” he reportedly said on state television. The effects on the country’s commerce could be immediate, as U.S. tariffs that have averaged 40 percent will drop below 3 percent. The deal must still be ratified by the U.S. Congress and will be reviewed annually.

U.S. firms will initially have restricted access to Vietnam’s banking, insurance, telecommunications, tourism and technical services markets, but a timetable for opening the market to complete access is in place.

Topics USA