On January 22, 2021, the Office of the United States Trade Representative (USTR) published in the Federal Register a notice [Docket No. USTR-2020-0037] that USTR has determined that Vietnam’s acts, policies, and practices related to currency valuation, including excessive foreign exchange market interventions and other related actions, taken in their totality, are unreasonable and burden or restrict US commerce, and thus actionable under Section 301. Under section 303 of the Trade Act, the U.S. Trade Representative requested consultations with the Government of Vietnam regarding the issues involved in the investigation. Consultations were held on December 23, 2020.
Based on information obtained during the investigation, and in consultation with the Department of the Treasury and other agencies represented on the Section 301 Committee, USTR has prepared and published a comprehensive report on Vietnam’s acts, policies, and practices related to the undervaluation of its currency (the Report). The Report, which is posted on the USTR website at https://ustr.gov/issue-areas/enforcement/section-301-investigations/section-301-vietnam, includes a full discussion on whether the acts, policies, and practices under investigation are actionable under section 301(b) of the Trade Act. The Report supports a finding that Vietnam’s acts, policies, and practices related to currency valuation, including excessive foreign exchange market interventions and other related actions, taken in their totality, are unreasonable and burden or restrict US commerce.
Sections 301(b) and 304(a)(1)(B) of the Trade Act provide that if the USTR determines that an act, policy, or practice of a foreign country is unreasonable or discriminatory and burdens or restricts US commerce, the USTR shall determine what action, if any, to take under Section 301(b). These matters will be addressed in subsequent proceedings under Section 301.
