HANOI, Nov 10 (Reuters) – The United States has extended a trade probe into Vietnam’s intellectual property protections by three months until the end of February, the Office of the US Trade Representative said on Tuesday, citing the complexity of the matter.
Launched in May to look into Vietnam’s alleged “persistent failure to resolve long-standing concerns about IP protection and enforcement,” the probe was initially scheduled to be completed at the end of this month, the USTR had said, potentially leading to new tariffs for Vietnam, a major source of US imports.
The deadline for the probe conclusion has now been moved to February 28 because “the investigation involves complex or complicated issues that require additional time,” according to a USTR statement released on Tuesday.
The US has designated Vietnam as a “priority foreign country” for IP violations, the first jurisdiction in 13 years to be added to the most serious US watchlist category.
Vietnam’s foreign ministry did not immediately respond to a request for comment.
Vietnam currently faces 12.5% general duties on its exports to the United States after the USTR determined that the country did not do enough to prevent use of imported goods made with forced labour. A separate investigation into alleged excessive capacity is also underway.
The two countries have been negotiating a trade deal for more than a year. In recent weeks Vietnamese officials expressed confidence in an agreement. A deal would end tariff uncertainty but may result in additional duties for Vietnam.
Long accused of being a transit hub for Chinese goods, Vietnam faced 20% tariffs after Trump’s “Liberation Day” last year, which were struck down by the Supreme Court. Washington imposed in July the current tariffs of 12.5%.
Multinationals, including Tesla and Samsung, have opposed new tariffs on Vietnam, which is an important assembly hub for industrial products exported to foreign markets. Makers of footwear, apparel and consumer goods also warned against new duties.
But US producers of steel, seafood, plywood, solar panels and wood products have accused Vietnam of unfair practices and called for new tariffs, according to submissions to the USTR.
(Reporting by Francesco Guarascio and Phuong Nguyen; Editing by Martin Petty and Stephen Coates)
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