Vietnam proposes United States exempt certain agricultural products from taxation

VOV.VN - Vietnam has proposed to the United States the exemption of taxes on certain groups of agricultural and aquatic products that do not directly compete in the market.

Deputy Minister of Agriculture and Environment Hoang Trung made the request during his meeting with US Deputy Under Secretary of Agriculture Jason Hafemeister in Washington D.C. on April 9 as part of Deputy Prime Minister Ho Duc Phoc’s working visit to the US.

Trung affirmed that the US Department of Agriculture (USDA) is a trusted partner of Vietnam’s Ministry of Agriculture and Environment (MoAE) as well as Vietnamese farmers. He expressed the desire for continued strengthening of cooperation between the two ministries, aiming to bring mutual benefits to both countries, their farmers, and businesses.

He informed his host that since the previous meeting in 2024, the Vietnamese side has implemented commitments made with the USDA. It is urgently completing the preliminary risk assessment (PRA) report and other necessary procedures to allow US citrus fruits like oranges, plums, and seedless lemons to enter the Vietnamese market in 2025.

The MoAE has also completed evaluations and granted permits for the use of genetically modified (GM) products in animal feed.

At the meeting, the Deputy Minister also addressed the recent proposal for tariff reductions from the US government, saying the government of Vietnam has amended and supplemented preferential import tax rates for several products.

Accordingly, wood and wooden products have seen a reduction in taxes from an average of 15-25% down to 0%. Similarly, taxes on corn and soybeans have decreased from 2% to 0%, creating favourable conditions for US businesses exporting to Vietnam.

Both sides also discussed the US government’s recent announcement of imposing high reciprocal tariff of up to 46% on Vietnamese goods exported to the US – a move that could significantly disadvantage not only Vietnamese farmers and businesses but also US companies and consumers.

Trung emphasized that Vietnamese agricultural products entering the US market are of high quality and competitively priced. He proposed that the USDA support the MoAE’s request to consider exempting certain groups of agricultural and aquatic products from tariffs, particularly those serving essential consumer needs in the US that do not directly compete with US products such as seafood, cashews, pepper, fruits, and coffee.

He also requested that the US promptly consider opening up its market for Vietnamese passion fruit.

Hafemeister for his part affirmed that the MoAE is a reliable and respected partner of the USDA. He expressed support for Vietnam’s proposals and revealed that the US Secretary of Agriculture is expected to visit Vietnam in May 2025 to continue discussions on bilateral cooperation in the agricultural sector.

The Vietnamese delegation also met with representatives from the US Animal and Plant Health Inspection Service (APHIS) to enhance cooperation in facilitating the opening of markets for agricultural products both from the US to Vietnam and from Vietnam to the US.

According to the MoAE, the US is the largest exporter of poultry meat to Vietnam, accounting for about 34% of total poultry imports. It is also the second largest exporter of beef, and the sixth largest exporter of pork among the countries exporting meat to Vietnam.

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