The U.S. and Vietnam reached an agreement that will not involve new tariffs following an investigation into environmental concerns in Vietnam’s timber industry.
The agreement includes commitments from Vietnam that it will keep illegally harvested or traded timber out of its supply chain and protect the environment.
U.S. Trade Representative Katherine Tai said the agreement was satisfactory and that the U.S. would not take any trade action against Vietnam.
“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.”
The U.S. launched its investigation into Vietnam’s timber trade in October 2020.