US extends Vietnam intellectual property inquiry to February 2027
Vietnamese officials have expressed confidence in a trade deal, although an agreement could still bring additional US tariffs.
- The United States has extended its investigation into Vietnam's intellectual property (IP) protections, with a new deadline of February 2027.
- The US Trade Representative (USTR) stated the extension was necessary because the inquiry involves "complex or complicated issues that require additional time."
- The findings of the investigation could lead to the imposition of additional tariffs on Vietnamese exports to the US
- The inquiry centers on Vietnam's alleged "persistent failure" to enforce IP rights, which led to its designation as a "priority foreign country" for such violations.
The deadline for the US investigation into Vietnam’s intellectual property protections has been moved to February 28, extending the process by three months.
Its findings could lead to additional tariffs.
The Office of the United States Trade Representative (USTR) announced the change on Tuesday (November 10).
Explaining why the original end-of-November deadline had been revised, its statement said: “the investigation involves complex or complicated issues that require additional time”.
Vietnamese officials have expressed confidence in recent weeks that a trade agreement can be reached with the United States, following more than a year of negotiations.
An agreement would settle uncertainty over tariffs, although it could also bring extra duties for Vietnam.
A general tariff of 12.5% already applies to Vietnamese exports to the United States.
Washington introduced it in July after the USTR concluded that Vietnam’s efforts to prevent the use of imported goods produced with forced labour were insufficient.
The US Supreme Court had previously struck down the 20% tariffs Vietnam faced after President Donald Trump’s “Liberation Day” last year.
Vietnam has also long been accused of serving as a transit hub for Chinese goods.
The USTR began examining Vietnam’s intellectual property (IP) practices in May, focusing on its alleged “persistent failure to resolve long-standing concerns about IP protection and enforcement”.
A separate investigation is examining allegations of excessive production capacity.
Vietnam is the first jurisdiction in 13 years to be designated a “priority foreign country” by the United States over IP violations.
The designation puts it in Washington’s most serious watchlist category.
Manufacturers of footwear, clothing and consumer goods are among the opponents of further tariffs, as are multinationals including Tesla and Samsung.
Vietnam is a major source of US imports and an important centre for assembling industrial products for foreign markets.
Requests for new duties have come from American producers of steel, seafood, plywood, solar panels and wood products, whose submissions to the USTR allege unfair practices by Vietnam.
There was no immediate response from Vietnam’s foreign ministry to a request for comment.
Source: Reuters
