US, Vietnam Reviving TIFA Talks

The top US and Vietnamese trade officials plan to hold a meeting of the bilateral Trade and Investment Framework Agreement this year in order to intensify trade discussions. There has not been a TIFA meeting since 2019.

US Trade Representative Katherine Tai was in Hanoi last week for a meeting with Vietnam's Minister of Industry and Trade Nguyen Heng Diên. The two officials said they have tasked their teams to intensify technical discussions under the TIFA on a range of issues, including labor reforms, environment, digital trade, agriculture and intellectual property.

Ms. Tai also used the meeting to discuss US priorities for its 2023 host year for the Asia Pacific Economic Cooperation forum, particularly on creating resilient and sustainable trade policy. Ms. Tai will host a meeting of the APEC Ministers Responsible for Trade in May.

A U.S.-led Pacific trade framework that excludes China will deliver practical benefits for business, the U.S. Trade Representative said on a visit to Vietnam, adding that the postwar history between Washington and Hanoi shows how today's economic and geopolitical problems can be solved, Nikkei Asia reported.

Ms. Tai also addressed concerns of forced labor in the supply chain of nearby Xinjiang, China, saying the issue matters to the "integrity" of Vietnam-U.S. trade. She pointed to the two sides' successful handling of other problems, namely currency manipulation and the timber trade, as well. Vietnam posted a $116 billion trade surplus with the United States last year, led by shipments of goods such as electronics, clothing and footwear, including 80% of US solar panels, according to Reuters.

Tai pushed back against critics of the Indo-Pacific Economic Framework. One of the biggest criticisms of the IPEF is that it lacks the tariff cuts that make up trade deals like the former Trans-Pacific Partnership, which the U.S. exited. “I agree, I have heard skepticism,” Tai told reporters. “I do not hear it from our trading partners. I hear it mostly from observers and commentators.”

IPEF priorities like fair taxes and clean energy are being negotiated by 14 nations. If they can agree to make their customs procedures digital and interoperable among all member states, for example, that would benefit exporters and importers, Tai said. “They will know how improved trade facilitation between these 14 countries will translate into dollars and cents for them,” the first Asian-American USTR said.