Vietnam Timber Agreement Forestalls Tariffs
A Section 301 investigation into illegal timber trade in Vietnam will result in no tariffs on Vietnamese goods, U.S. Trade Representative Katherine Tai said Oct. 1. Many stakeholders argued against a punitive approach on the issue (see 2011160027), including groups that fight the harvest of rare wood, such as the Sustainable Furnishings Council and the Environmental Investigation Agency.
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Tai said her office will monitor the implementation of the agreement, which includes collaborating with high-risk source countries on enforcement at the border and after violations; improving verification of both imported and domestically harvested timber, and confiscating timber that was illegally harvested so that it doesn't get sold.
It also gives America the right to ask Vietnam to give evidence about the due diligence on a particular shipment of wood into Vietnam, including "a copy of the logging license of the logging unit, or the forest owner’s certificate of permission to harvest the forest lot; for sawn timber, a copy of the certificate of registration as a woodworking establishment; a copy of the export visa, or export license, from the country of harvest, and any third country through which the timber transited; a complete set of declarations or other records submitted to, obtained, or possessed by Vietnamese customs officials for the export of the shipment; and, to the extent consistent with applicable domestic and international law, any other relevant information requested by the United States."
Vietnam also agreed to eliminate financial incentives for timber, including exporting that timber, if it is not plantation-grown in Vietnam. The U.S. will hold a period of public comment on the agreement, as will Vietnam.
The American Apparel and Footwear Association praised the agreement. "We are pleased to see that U.S. apparel, footwear, and accessories imports from Vietnam will not be subjected to additional tariffs," CEO Steve Lamar said. "At a time when we are focusing on getting more vaccines to this key trade partner and unlock snarled supply chains, removal of this tariff threat is welcome indeed."