Vietnam: FTA Competition in Vietnam

The United States is largest agricultural trading partner with Vietnam that does not have an FTA with Vietnam. The MFN tariff rates that apply to U.S. agricultural products are substantially higher than those stipulated in Vietnam’s many FTAs. As a result, U.S. agricultural products trade at a substantial disadvantage to competitor countries. The impact on U.S. market share is undeniable, and will continue to accelerate as recent FTAs, such as the EVFTA, are phased in. Should this situation continue, Post forecasts that the U.S. will continue to lose market share, especially in higher-value products.