The USTR has extended its probe into Vietnam’s intellectual property protections by three months, citing complex issues.
The United States has extended a trade probe into Vietnam’s intellectual property protections by three months until the end of February, the Office of the US Trade Representative (USTR) said on Tuesday, citing the complexity of the matter. The probe was launched in May to look into Vietnam’s alleged “persistent failure to resolve long-standing concerns about IP protection and enforcement”. It was initially scheduled to be completed at the end of this month and could potentially lead to new tariffs for Vietnam, a major source of US imports.
The deadline has now been moved to February 28 because “the investigation involves complex or complicated issues that require additional time”, according to a USTR statement. The US has designated Vietnam as a “priority foreign country” for IP violations, the first jurisdiction in 13 years to be added to the most serious US watchlist category.
Vietnam currently faces 12.5 per cent general duties on its exports to the United States after the USTR determined that the country did not do enough to prevent the use of imported goods made with forced labour. A separate investigation into alleged excessive capacity is also underway. The two countries have been negotiating a trade deal for more than a year.
Multinationals including Tesla and Samsung have opposed new tariffs on Vietnam, while US producers of steel, seafood, plywood, solar panels and wood products have called for them, according to submissions to the USTR.
Source: Reuters
