Vietnam, US make initial progress in reciprocal tariff talks at ministerial meeting in Jeju

The talks took place on Jeju Island, South Korea, following the conclusion of the 31st APEC Ministers Responsible for Trade (MRT) Meeting on Friday. 

Vietnamese Minister of Industry and Trade Nguyen Hong Dien held direct discussions with U.S. Trade Representative Jamieson Greer.

This marked the first in-person ministerial meeting between the two countries on the proposed trade deal, following a phone call in April. 

The agreement is part of efforts to deepen the U.S.–Vietnam Comprehensive Strategic Partnership, according to the ministry.

The talks were described as "frank, constructive, and flexible," with both sides showing commitment to a stable and mutually beneficial trade and investment relationship. 

Greer welcomed Vietnam's proactive approach and was largely supportive of its proposals, the ministry said.

Technical-level negotiations are expected to continue in the coming days, with both countries aiming for a deal that aligns with international norms and reflects their respective development levels.

The U.S. has postponed the implementation of the 46-percent tariff on Vietnam until July. 

If enforced, the levy could disrupt growth in Vietnam, which is heavily dependent on sales to the United States, its largest export market, and substantial foreign investments in manufacturing goods for export.

Vietnam has the fourth-largest trade surplus among all U.S. trading partners, worth US$123.5 billion last year, according to Reuters.

In an attempt to diminish that trade surplus, Hanoi has recently implemented several measures, including reducing tariffs on a multitude of goods destined for the U.S. and intensifying its efforts to curb the shipment of Chinese goods to the U.S. via its territory.

Earlier, Minister Dien also attended meetings on the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), where trade ministers discussed implementation progress and Costa Rica's accession process.

The APEC gathering brought together representatives from 21 member economies, as well as officials from the World Trade Organization (WTO), the Organization for Economic Co-operation and Development (OECD), ASEAN and other regional organizations. 

Discussions focused on AI-driven trade facilitation, multilateral trading systems, and sustainable trade.