ITA Helps Alleviate Against Import Restrictions on Consumer Goods in Vietnam
August 8, 2013
(ITA)
The Department of Commerce’s International Trade Administration (ITA) helped
members of the U.S. food and beverage industry overcome a trade-restrictive
import licensing policy imposed by the Government of Vietnam’s (GoV) Ministry of
Industry and Trade (MOIT). This market access barrier had the potential to
notably decrease U.S. exports to Vietnam.
Why it Matters
Had the ITA not acted to ensure that Vietnam did not expand its
trade-restrictive import licensing requirements, U.S. food and beverage product
companies would have continued to face non-transparent and overly-restrictive
import regulations that delayed and reduced their exports. This, in turn, could
have led to a permanent reduction of U.S. companies’ market share in Vietnam.
The Problem
In 2010, Vietnam’s Prime Minister issued a resolution that directed its
Ministries to “reduce the trade deficit, and improve the balance of payments,”
and specifically called on MOIT to “strictly control the import of items that
are not really necessary…[and] promulgate a list of dispensable import goods and
non-encouraged imports of consumer goods.” MOIT then issued new requirements to
reduce the import of specific goods, including a broad range of food, beverage
and agricultural products. The new measures were not transparent and resulted
in decreased U.S. exports, raising questions about Vietnam’s commitment to the
World Trade Organization Agreement on Import Licensing Procedures.
The Solution
In response to Vietnam expanding its import licensing requirements, ITA
coordinated with U.S. government agencies and U.S. companies to fully engage the
GoV by raising USG concerns in the WTO Import Licensing Committee.
Subsequently, MOIT issued a September 2012 circular which suspended the
implementation of these new import licensing requirements. This suspension has
provided relief from the import licensing policy that limited U.S. exports to
Vietnam. MOIT officials later confirmed that consistent communications from
U.S. government and industry representatives played a significant role in the
decision to suspend the import licensing policy.
Working closely with U.S. companies, ITA creates, expands, and defends market
access for U.S. goods and services overseas through the Trade Agreements
Compliance Program. We promote policy that develops a more favorable business
climate for U.S. companies in global markets, employ commercial diplomacy to
resolve trade barriers, and leverage our bilateral and multilateral trade
agreements to ensure our trading partners live up to their commitments so that
American businesses can compete on a level playing-field.
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