U.S. Removes Vietnam Arms Embargo as Officials Trumpet TPP's Upside during Obama Visit

Lifting the blanket arms embargo will allow the U.S. to take a case-by-case approach to allowing arms sales to Vietnam, as it does with all foreign arms sales, said Obama. "Given all the work we do together across the spectrum of economic, trade, security and humanitarian efforts...it [is] appropriate for us not to have a blanket across-the-board ban," Obama said. "Now, every sale that we make to everybody is viewed as a particular transaction, and we examine what's appropriate and what's not, and there are some very close allies of ours where we may not make a particular sale until we have a better sense of how that piece of equipment may end up being used."

Noting continued "differences" of opinion between the two countries on human rights, TPP is already serving as a catalyst for Vietnamese labor reforms, said Obama. U.S. and Vietnamese officials on May 23 reiterated their view that the TPP is economically and strategically critical, and asserted that the agreement will facilitate trade and investment, advance “inclusive” economic growth, and generate jobs, according to a joint statement issued by the White House (here). Obama visited Vietnam and met with Quang on May 23, where trade was a central discussion topic, the statement says. Regarding TPP, “the two sides reaffirmed their commitments to seek early ratification and full implementation of this high-standard agreement, including commitments on investment, business facilitation and development, intellectual property, textile, services, labor, and environment,” the statement says.

Officials also announced VietJet’s purchase of 100 Boeing aircraft and a wind energy memorandum of understanding between GE and the Vietnamese government, which calls for expediting the development of renewable energy in Vietnam. The U.S. plans to offer “robust technical assistance and capacity building programs” to position Vietnam well to implement TPP, and both delegations pledged to continue work to promote bilateral access for industrial, agricultural, and aquacultural goods, the officials said. Furthermore, the U.S. and Vietnam through their bilateral working group will discuss Hanoi’s desire for Vietnam to be recognized as a market economy, the statement says.

The Obama-led trip delegation includes U.S. Trade Representative Michael Froman, Deputy National Security Advisor for Strategic Communications Ben Rhodes, Sen. Tom Carper, D-Del., and Texas Democratic Reps. Beto O'Rourke and Joaquin Castro. Ahead of the trip, anti-TPP Democratic Reps. Louise Slaughter, N.Y., Paul Tonko, N.Y., and Rosa DeLauro wrote Obama a letter (here) urging him to meet with political dissidents, civil society organizations, and an apparel workshop "not hand-picked by your hosts." The pro-labor House lawmakers said TPP labor provisions and a completed separate bilateral side letter will give Vietnam "significant market access" to its apparel industry, but will not protect Vietnamese workers from abuse or U.S. workers from unfair competition after the agreement takes effect. "Not only are collective bargaining and the right to join independent unions absent from the entire economy, other abuses including forced labor and child trafficking exist as well, particularly in garments, bricks, and agriculture," the lawmakers wrote. "We do not doubt your commitment to include stronger labor provisions in the TPP, but the end result has fallen short of what we believe would be an effective 'gold standard' agreement."