Harley : trade agreement could pave way for entry into Vietnam
MILWAUKEE - Harley-Davidson motorcycles could one day be for sale in Vietnam now that the United States has worked out a trade agreement that would reduce tariffs on heavyweight motorcycles.
The Milwaukee-based motorcycle manufacturer said that the communist country agreed to lift an outright ban on large displacement motorcycles in negotiations earlier this month. It also said the country would adopt a licensing system for motorcycle operators, relax distribution restrictions and reduce tariffs on heavyweight motorcycles by 60 percent over time.
The tentative trade agreement, which included relaxing other trade barriers to U.S. products, is a requirement the country must fulfill to become a member of the World Trade Organization. It's expected to be signed next month. Congress must pass legislation granting Vietnam "permanent normal trading relations" with the United States, a status that would guarantee Vietnam gets the same low tariff privileges as other WTO members.
Harley-Davidson has yet to announce definitive plans to enter the Vietnamese market, which is considered one of Asia's fastest growing markets. But it said in a news release late Wednesday that it has long been interested in expending its presence in the Asian market and the agreement is key to moving into Vietnam.
In April, Harley-Davidson opened a dealership in Beijing, marking its first dealership in mainland China since at least World War II.
The Associated Press - May 24, 2006.
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