{
  "id": "R45172",
  "type": "CRS Report",
  "typeId": "REPORTS",
  "number": "R45172",
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  "source": "EveryCRSReport.com",
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    {
      "source": "EveryCRSReport.com",
      "id": 580438,
      "date": "2018-04-16",
      "retrieved": "2018-04-24T13:12:11.242812",
      "title": "U.S-Vietnam Economic and Trade Relations: Key Issues in 2018",
      "summary": "President Trump\u2019s decision in January 2017 to withdraw the United States from the proposed Trans-Pacific Partnership (TPP) trade agreement removed a major focus of trade relations with the Socialist Republic of Vietnam (Vietnam) since 2008. As a result, trade relations are likely to refocus onto various bilateral trade issues such as the rising U.S. bilateral merchandise trade deficit with Vietnam, Vietnam\u2019s desire to be recognized as a market economy, and various elements of each nation\u2019s trade policies and regulations. Congress may play a role in each of these trade issues. \nOver the last 20 years, the U.S. merchandise trade balance with Vietnam has gone from a surplus of $110 million in 1997 to a deficit of more than $38 billion in 2017. The 2017 bilateral merchandise trade deficit with Vietnam was the 5th largest for the United States. U.S. exports declined in 2017 by nearly $2 billion compared to 2016, while U.S. imports from Vietnam increased by more than $4 billion. Given President Trump\u2019s focus on nations with which the United States has a bilateral merchandise trade deficit, Vietnam\u2019s trade policies and practices may face increased scrutiny from his Administration in the months ahead. \nOne issue that was prominent during the TPP negotiations, and will likely remain an issue during the 115th Congress, were changes in U.S. laws regulating catfish imports that the Vietnamese government saw as protectionist, including the 2008 Farm Bill (P.L. 110-246) which shifted the inspection of catfish from the Food and Drug Administration (FDA) to the U.S. Department of Agriculture (USDA). Given the views expressed by some Senators, catfish import regulation may be addressed if the Senate considers the Agriculture and Nutrition Act of 2018 (H.R. 2). \nA new trade issue that may arise is U.S. arms sales to Vietnam. In May 2016, President Obama ended the remaining restrictions on lethal arms sales to Vietnam that had been in place since the end of the Vietnam War in 1975. President Trump has indicated that he sees U.S. arms sales to Vietnam as an important method of reducing the bilateral merchandise trade deficit. While Vietnam has made few purchases of U.S. military equipment and materials since the removal of the restrictions, Vietnamese officials indicate that more requests may be submitted. In certain circumstances, Congress can play a role in the approval or disapproval of such arms sales. \nEach nation has raised other concerns about the other\u2019s trade policy. Vietnam would like the United States officially to recognize it as a market economy and sign a bilateral investment treaty (BIT). The United States would like Vietnam to increase U.S. imports, reduce certain technical barriers to trade, and implement various labor reforms.\nThe importance of Vietnam\u2019s trade relations with the United States may be influenced by two proposed regional trade agreements. Vietnam is a party to the 11-member Comprehensive and Progressive Agreement on Trans-Pacific Partnership (CPTPP), which was signed in March 2018, as well as the proposed Regional Comprehensive Economic Partnership (RCEP); the United States is not. The implementation of either trade agreement is likely to increase Vietnam\u2019s trade flows to the other nations in the trade agreements, and decrease its trade with the United States. \nThe 115th Congress may play an important role in one or more of these issues, as have past Congresses. No legislation has been introduced regarding trade relations with Vietnam, but other legislation, such as H.R. 2, may contain relevant provisions.",
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      "typeId": "REPORTS",
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  "topics": [
    "Asian Affairs",
    "Foreign Affairs",
    "Industry and Trade"
  ]
}