USTR Opens Section 301 Probe Into Vietnam’s ‘Unfair Currency Practices’

The Office of the U.S. Trade Representative is initiating a Trade Act Section 301 investigation into Vietnam’s allegedly unfair currency manipulation and “the resultant harm caused to U.S. commerce,” said the agency Friday. “Unfair currency practices can harm U.S. workers and businesses that compete with Vietnamese products that may be artificially lower-priced because of currency undervaluation,” said USTR Robert Lighthizer. “We will carefully review the results of the investigation and determine what, if any, actions it may be appropriate to take.” The Vietnamese Embassy in Washington didn’t respond to questions Monday. Vietnam accounted for 18% of all smartphone imports to the U.S. in Q2 (see 2008160001), plus 11% of TV imports and 5% of tablet and laptop shipments (see 2008090002).