by Agreement suspends imposition of Section 301 tariffs on Vietnam relating to environmental concerns over wood supply chain
WASHINGTON, D.C. – The office of the United States Trade Representative said it has reached an agreement with Vietnam that addresses concerns regarding the use of illegally harvested timber in products such as furniture. Thus, the U.S. will not impose any trade-related tariffs on Vietnam relating to this issue at this time.
Representing the first Section 301 investigation regarding environmental concerns, the agreement announced Friday expects to achieve commitments that will help keep illegally harvested and traded timber out of the supply chain.
United States Trade Representative Katherine Tai said that this “provides a satisfactory resolution on the matter subject to investigations and that no trade action is warranted at this time.” However, the USTR office said it will monitor Vietnam’s actions relating to the agreement.
This is the second official action the USTR has taken involving Section 301 investigations involving Vietnam, both of which were launched in October 2020. An agreement reached in late July determined that it will take no action involving allegations of currency manipulation that could have resulted in Section 301 tariffs.
“I commend Vietnam for its commitment to address our concerns regarding the importation and use of timber that is illegally harvested or traded,” Tai said in a statement. “With this Agreement, Vietnam will provide a model – both for the Indo-Pacific region and globally – for comprehensive enforcement against illegal timber. USTR looks forward to working with Vietnam to deepen collaboration and information exchange, including through a newly created Timber Working Group.”
According to the agreement, Vietnam has made commitments to improve its Timber Legality Assurance System and to keep confiscated timber seized for violating domestic or international law out of the commercial supply chain. In addition, Vietnam has agreed to verify the legality of domestically harvested timber destined for export and also to work with high-risk countries to improve customs enforcement at the border and law enforcement collaboration.
“Illegal timber in the supply chain damages the global environment and the natural resources on which we all depend, and is unfair to U.S. workers and businesses who avoid such timber,” Tai said. “USTR’s first use of Section 301 in this investigation shows the strength of using this tool to address concerns regarding environmental risks or the enforcement of environmental laws.”
Details of the agreement can be found here.
