US, Vietnam trade deal instructive for India: GTRI

 

The new trade agreement between the United States and Vietnam is raising concerns and offering key lessons for India, especially for Indian exporters who see Vietnam as both a competitor and a partner in regional value chains, according to a report by Global Trade Research Initiative (GTRI). The report highlighted that despite a historic trade agreement signed in 2000 that allowed Vietnamese goods to enter the US at concessional tariffs of 2 to 10%, the new deal imposes a flat 20% tariff on all Vietnamese exports to the US. This move could affect Vietnam’s export flow worth $135 billion and reverse two decades of trade liberalisation. India has been advised to learn from Vietnam’s experience, particularly the risks of reversing previous concessions, applying blanket tariffs, and unclear rules around the origin of goods, said a report.

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