Vietnam, US reach agreement to end timber trade probe

Currently, the US is the biggest market for Vietnamese wood products. (Photo: VNA)

Hanoi (VNA) – Vietnam and the US have reachedan agreement on illegal logging and timber trade that will avoid hefty tariffson Vietnamese timber exports, according to the Vietnamese Ministry of Agricultureand Rural Development (MARD).

The deal was inked by MARD Minister Le Minh Hoan andUS Trade Representative Katherine Tai on October 1.

In October 2020, the US Trade Representative (USTR)launched an investigation into Vietnam's timber exports under Section 301 ofthe 1974 Trade Act.

The agreement addresses US concerns in the VietnamTimber Section 301 investigation. 

Ambassador Tai determined that the Agreement providesa satisfactory resolution of the matter subject to investigation and that notrade action is warranted at this time, the USTR said.

At a working session between the Vietnamese Ministry of Agriculture and Rural Development and the US Trade Representative (USTR). (Photo: VNA)

The agreement will contribute to improving theprestige of Vietnam’s timber sector and creating a foundation for the country’ssustainable forestry development. It also demonstrates Vietnam’s responsibilityin building, issuing and implementing legal regulations, ensuring the legal timberorigin in line with relevant regulations of international treaties to whichVietnam is a member.

The US side spokehighly of the agreement, saying "Vietnam will provide a model – both for theIndo-Pacific region and globally – for comprehensive enforcement againstillegal timber."

Currently, the US is the biggest market for Vietnamesewood products, representing an estimated 7.4 billion USD last year, about halfof the country’s total. In the first eight months of this year the number stoodat 6.4 billion USD, up 58.8 percent year-on-year./.

VNA