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1 1 (March 4, 2024)

handle is hein.crs/goveomp0001 and id is 1 raw text is: Congressional ____ ~ Research Service Vietnam's Nonmarket Economy (NME) Status March 4, 2024 Shortly after extending normal trade relations (NTR) status to Vietnam in 2001, the United States designated Vietnam as a nonmarket economy (NME) for the purposes of antidumping and countervailing duty (AD/CVD) cases. The government of Vietnam has long sought to remove the designation, arguing it may hinder closer ties. Vietnam officially submitted a removal request on the eve of President Joseph Biden's September 2023 visit to Hanoi, where he and Communist Party of Vietnam (CPV) Secretary-General Nguyen Phu Trong elevated the U.S.-Vietnam relationship to a comprehensive strategic partnership. In a joint statement, Biden said the United States would review the request as expeditiously as possible, in accordance with U.S. law. On October 30, 2023, the Department of Commerce initiated a review of Vietnam's NME status. Since then, some Members of Congress have raised concerns over whether Vietnam meets the conditions to be designated as a market economy. Nonmarket Economy Status under U.S. Trade Laws The Department of Commerce has the authority to designate countries as NMEs for the purpose of U.S. antidumping and countervailing duty (AD/CVD) laws. An NME is a country that Commerce determines does not operate on market principles of cost or pricing structures, so that sales of merchandise in such country do not reflect the fair value of merchandise. In designating a country as an NME, Commerce considers the extent to which (1) the country's currency is convertible; (2) its wage rates result from free bargaining between labor and management; (3) joint ventures or other foreign investment are permitted; (4) the government owns or controls the means of production; and (5) the government controls the allocation of resources and price and output decisions. Commerce may also consider other factors that it considers appropriate. An NME designation remains in effect until revoked by Commerce. There are currently 12 countries, including Vietnam, designated as NMEs. Commerce designated Vietnam as an NME in 2002 during its antidumping investigation into Vietnamese catfish exports. Commerce's usual practice of applying alternative methods when calculating dumping margins in antidumping investigations involving NMEs generally leads to higher tariffs in affirmative determinations. These methods have raised concerns at the WTO that a subsidy may be offset twice when both antidumping and countervailing duties are applied to NME products. After Commerce published the notice initiating the changed circumstances review of Vietnam's NME status, interested parties were able to submit comments to Regulations.gov. U.S. manufacturing groups have expressed opposition to removal of Vietnam's NME status. On the other hand, the National Retail Congressional Research Service https://crsreports.congress.gov IN12326 CRS INSIGHT Prepared for Members and Committees of Congress

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