Politico is reporting some of the details from the US/Vietnam trade deal:
Final deal to be sealed “within coming weeks” with a substantial reduction in U.S. tariffs on Vietnamese imports.
No specifics yet on tariff levels or final tariff rates.
$8B deal: Vietnam to purchase 50 Boeing aircraft.
$2.9B in U.S. agricultural goods (including poultry, pork, beef, and other products).
Vietnam to offer preferential market access to U.S. agriculture and industrial goods.
Vietnam will address non-tariff barriers, like intellectual property enforcement.
The deal may impact other Asian trade negotiations, setting a high standard.
The U.S. and Vietnam will set rules of origin to curb transshipment of Chinese goods.
Draft hints at U.S. push for Vietnam to reduce reliance on Chinese imports, which make up 40% of Vietnam’s total imports.
The pressure on China is somewhat significant. The deal will put more pressure on China to make a deal with the US eventually if their work-arounds are stopped. It also could lead to higher inflation in the US of course.
This article was written by Greg Michalowski at www.forexlive.com.