VITAS also expressed disappointment with the USTR’ decision to launch a Section 301 investigation on Vietnam – a move that could pave the way for imposition of new punitive duties on U.S. imports from the country. Citing the negative impact of the administration’s tariffs on imports as a result of other Section 301 investigations.
Over the last few decades, Vietnam has become a fair and open trade partner with not just the United States but also the European Union, the United Kingdom and many more around the world. In Asia in particular, Vietnam has grown to become an important strategic partner of the United States both politically and economically. Recently, given the services and trade exchange activities between two countries, Vietnam consumers have enjoyed U.S goods and services and vice versa. This has entirely owed itself to the efforts by services and goods exporters and importers of the two countries, which is not related to Vietnam Government’s monetary policies that are in nature exercised towards such domestic goals as inflation control and macroeconomic stability.
Regarding to Vietnam apparel, footwear, and travel goods industry, is an important trading partner for the U.S. apparel, footwear, and travel goods industry, and has become even more important as U.S. companies have implemented diversification strategies away from China. Vietnam is the second largest supplier of apparel, footwear, and travel goods to the U.S. market, and has experienced dramatic growth since 2016, however compare with China in percentage market share, Vietnam apparel is only count for 15,83% of total apparel import to US compared with China is 25,93% (updated to July 2020)
Brands did their best to restructure their sourcing models to protect American consumers and American global value chain workers from increased costs caused by the administration’s tariffs, and follow the administration’s edict to diversify from China, many turned to their trusted partners in Vietnam. Imposing new punitive tariffs on imports from Vietnam would cause extreme disruption, directly threatening those investments and increasing prices for hard-working American families at the register or costs on the supply chains that directly support millions of U.S. jobs. (Opinions of AAFA- America Apparel and Footwear Association (AAFA)
The Trump Administration added to this tariff burden – which already totals nearly $3 billion a year – with new 301 tariffs on Chinese-made products. This resulted in tremendous confusion, uncertainty, and added costs for U.S. footwear companies. Businesses cannot move factories in a short timeframe to adjust to any new tariff burden. Those that were able to move some production to Vietnam now face a threat of potential tariffs on Vietnamese-made goods resulting from the Administration's launch of a Section 301 investigation into Vietnam. Hitting American companies and their consumers with new taxes, in the form of import tariffs, is simply not the right approach. (Opinions of Matt Priest President & CEO Footwear Distributors and Retailers of America)
With regard to the Section 301 Investigation on Vietnam’s currency valuation, on December 23rd 2020, VITAS also joined with other 7 business associations representing Vietnamese and South Korean investors and factories in Vietnam, hereby call on the Office of the United State Trade Representative (“USTR”) to consider an extension of the comment period on the Vietnam Section 301 Investigation (in 28th-29th December 2020) in order to provide the USTR with the most well-rounded and impartial comments and inputs for the investigation.
We would like to seek opportunities to collect and provide verifiable and comprehensive evidence to prove such fact to USTR, thus request USTR to reopen the comment period, allowing interested parties to appear at the hearing, and to defer the hearing and post-hearing comment deadline to a later date that deems to be appropriate for this significant matter.
Download documents at HERE (Doc: 23 Dec2020 - Joint Request to USTR from VN-Final)