Vietnam and the United States took significant steps forward in their trade relationship with the recent signing of a bilateral agreement to remove anti-dumping tariffs on Vietnamese catfish exports to the U.S.
The agreement, which took place on January 17, 2025, during a ceremony in Washington, D.C., marks the culmination of negotiations stemming from Vietnam's complaint against the U.S. dating back to January 8, 2018. This legal dispute originated when Vietnam officially took action at the World Trade Organization (WTO) over the U.S. imposing tariffs on its catfish exports, particularly concerning the products known as "tra" and "basa" fish.
During the ceremony, representatives from Vietnam’s Ministry of Industry and Trade and the U.S. Trade Representative (USTR) signed the agreement, confirming Vietnam’s Vinh Hoan Corporation as the sole company exempted from these tariffs following the new framework.
"The signing of this agreement marks significant progress in trade relations between the two countries," stated officials from Vietnam's Ministry of Industry and Trade. This positive sentiment was echoed throughout the proceedings, where Vietnam expressed its appreciation for the U.S.'s willingness to negotiate.
The U.S. had originally implemented these tariffs due to claims of unfair pricing practices, which Vietnam contested. The Vietnamese government initiated the WTO case seeking to rectify this trade barrier, arguing the tariffs violated international trade regulations. After lengthy discussions and multiple legal presentations, the case evolved significantly.
Notably, as the WTO was set to deliver its final ruling on the matter, the U.S. proposed to suspend the announcement of the ruling to open avenues for bilateral negotiation. This proposal was pivotal—leading to the agreement made this January.
The negotiations reflect not only the commitment on both sides to resolve disputes amicably but also highlight the U.S.'s recognition of Vietnam as a considerable partner as both countries aim to promote trade and economic ties.
Vietnam's government has expressed satisfaction with the constructive spirit and the goodwill demonstrated by the U.S., particularly from the U.S. Department of Commerce and the USTR. The removal of the catfish tariffs will significantly support Vietnamese exporters, especially Vinh Hoan Corporation, which holds the position of the leading exporter of catfish to the U.S.
This agreement is not the first of its kind between the two nations; prior to this, there was a bilateral agreement concerning the anti-dumping tariffs on warm-water shrimp, which also protected Vietnamese interests.
The persistence of both nations' trade officials throughout the negotiation process cannot be understated. The agreement is viewed as the result of tireless efforts from both parties involved, including legal advices and discussions from various stakeholders.
Vietnam aims to showcase its commitment to protecting its legal rights within international trade frameworks. The successful resolution of this trade dispute sends a strong message about Vietnam's willingness to engage and negotiate effectively via international dispute mechanisms.
This agreement plays a strategic role as both nations continue to strengthen their Comprehensive Strategic Partnership, laying the groundwork for increased collaboration across various sectors. The developments are seen as part of the larger trend of Vietnam's growing engagement on the world stage and its integration within the global economy.
The bilateral resolution of the anti-dumping tariffs demonstrates the importance of dialogue and negotiation, showing how countries can work through trade conflicts to achieve mutually beneficial outcomes. Moving forward, both Vietnam and the U.S. seek to bolster their economic relationship, ensuring stability and prosperity for their respective businesses and economies.