Vietnam and the United States have made progress during a third round of trade negotiations last week but critical issues remain unresolved, requiring further analysis and continued dialogue, Vietnam’s trade ministry says.
The talks, in Washington DC from June 9-12, were held as a pause on 46 per cent “reciprocal” tariffs on Vietnamese exports approaches expiration in early July, adding pressure on both sides to reach a compromise.
Vietnam’s trade surplus with the United States surged to $US12.2 billion ($A18.8 billion) in May, up nearly 42 per cent year-on-year and 17 per cent higher than April, Vietnamese government data showed.
Exports to the US climbed 42 per cent from a year earlier to $US13.8 billion, hitting a post-pandemic high.
US negotiators have submitted a list of trade demands to Vietnam, which Vietnamese officials described as “tough,” including measures aimed at reducing Vietnam’s reliance on Chinese imports of industrial materials and components.
Vietnam’s trade ministry said on Sunday the delegations had narrowed gaps on issues outlined in Vietnam’s response to the US requests and worked toward mutually acceptable solutions.
Both sides agreed to hold an online meeting in the coming days between Vietnam’s trade minister Nguyen Hong Dien and US Secretary of Commerce Howard Lutnick to address unresolved issues, the ministry added.
The last round of talks was held between Dien, Lutnick and US Trade Representative Jamieson Greer, a format proposed by the United States.
Under pressure from the US, Vietnam has recently cracked down on illegal trans-shipment – typically when cargo is moved between ships during transit – of goods primarily from China.
It has also expressed willingness to lower non-tariff barriers and increase imports of US goods such as planes, farm products and energy although no purchase agreements have been announced.
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