Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

U.S. trade agency drops tariff threat against Vietnam over currency practices

07/23/2021 | 05:15pm EDT
FILE PHOTO: Illustration photo of a Vietnam Dong note

WASHINGTON, July 23 (Reuters) - The U.S. Trade Representative's office on Friday said it had determined that no tariff action against Vietnam was warranted after its central bank agreed with the U.S. Treasury not to manipulate its currency for an export advantage.

In a statement, USTR said it found that the U.S. Treasury-State Bank of Vietnam agreement earlier this week "provides a satisfactory resolution of the matter subject to investigation and accordingly that no trade action is warranted at this time."

The State Bank of Vietnam on Monday pledged in an agreement with Treasury Secretary Janet Yellen to refrain from "competitive devaluation" of its dong currency and make its monetary and exchange rate policies more transparent.

The deal follows months of U.S. pressure on Vietnam over its currency practices and ballooning U.S. trade surplus. The Trump administration in its final weeks had declared Vietnam a currency manipulator and had threatened to impose punitive tariffs on imports from Vietnam over its currency practices.

The USTR determination, outlined in a federal register https://ustr.gov/sites/default/files/files/Press/Releases/Vietnam_Currency_301_Notice_FRN.pdf notice, only pertains to its Section 301 investigation into Vietnam's currency practices. It does not affect a separate Section 301 investigation into Vietnam's use of illegally harvested or traded timber that could lead to tariffs on furniture and other wood products imported from Vietnam.

"American workers and businesses are stronger when our partners value their currency fairly and compete on a level playing field," U.S. Trade Representative Katherine Tai said in a statement.

"Going forward, in coordination with Treasury, we will work together with Vietnam to ensure implementation, and we will continue to examine the currency practices of other major trading partners," Tai added.

Vietnam welcomed the USTR's decision to take no action, its foreign minister, Bui Thanh Son, said.

"Constructive efforts and goodwill help resolve outstanding issues and contribute to the building of a better and stronger partnership," Son said on Twitter on Saturday.

The Vietnamese dong closed at 23,005 to the dollar on Friday, compared with 23,191 on Oct. 2, 2020, the day that USTR launched its currency probe. (Reporting by David Lawder; Editing by Leslie Adler and Diane Craft)


© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
BRITISH POUND / US DOLLAR (GBP/USD) -0.43% 1.3738 Delayed Quote.0.90%
CANADIAN DOLLAR / US DOLLAR (CAD/USD) -0.01% 0.7826 Delayed Quote.0.41%
EURO / US DOLLAR (EUR/USD) -0.32% 1.1725 Delayed Quote.-3.67%
INDIAN RUPEE / US DOLLAR (INR/USD) -0.18% 0.01357 Delayed Quote.-0.71%
NEW ZEALAND DOLLAR / US DOLLAR (NZD/USD) -0.47% 0.70346 Delayed Quote.-1.52%
Latest news "Economy & Forex"
12:46pMalaysia warns new Indo-Pacific pact may trigger nuclear arms race
RE
11:55aBritish food industry demands government action over CO2 shortage
RE
11:41aAustralia made 'huge' mistake' cancelling submarine deal, says French ambassador
RE
11:29aChina will steadily promote yuan internationalisation in 2021, central bank says
RE
10:50aChina's August exports to North Korea up for third month
RE
10:31aFactbox-Key economic policy stances of candidates to be Japan's next PM
RE
08:43aJapan's PM contender Kishida says won't raise sales tax for a decade
RE
08:36aGoogle says it will work with india antitrust authority to show android has led to more competition, not less
RE
08:36aGoogle practices led to unfair condition on device manufacturers in india – antitrust report
RE
08:36aIndia antitrust probe finds google abused dominant position of android operating system-report seen by reuters
RE
Latest news "Economy & Forex"