Vietnam millers and consumers can expect a reduction in the cost of wheat, as the Biden Administration and the United States Department of Agriculture’s (USDA) Foreign Agricultural Service (FAS) have toggled with Vietnam’s Ministry of Finance to reduce or eliminate import tariffs.
The reduction in import tariffs on several US commodities, including wheat, follows Vice President Kamala Harris’ Indo-Pacific trip to Vietnam. Negotiations stem from a bilateral package in which Vietnam seeks to reduce COVID-19-related inflation in both feed and food costs.
According to US Wheat Associates, America is second in wheat export volume to Vietnam. While the US makes up 500,000 of the more than 3 million metric tons of wheat imported to Vietnam, Australia comprises nearly 42%, or 1.3 million.
Efforts in import tariff reduction proved noteworthy in 2020, when wheat tariffs on the US (excluding durum) were lowered from 5% to 3%.
Vice President Harris sees merit in the continuation of strides towards the minimization or elimination of tariffs as it will provide a more competitive market with countries like that of Australia and Canada, who remain import tariff-free in Vietnam under the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP).
