From Catfish to Shrimp: How Vietnam Learned to Navigate the Waters of 'Free Trade' as a Non-Market Economy

I.Introduction In the years since the collapse of communism, the world has undergone a transformation, commonly known as globalization. 1 During this time, many countries, which were once state planned economies, have tried to become more free-market oriented. 2 The process of globalization has caused growing pains for both those trying to become more market-oriented and those trying to welcome others into the global trading system. One of the more recent countries to embark on the path from communism to capitalism is Vietnam. Vietnam became one of "globalization's brightest stories in the 1990's," but lately it has realized some of the perils of becoming heavily reliant on foreign markets. 3 In December 2001, an historic Bilateral Trade Agreement (BTA) 4 between the United States and Vietnam went into effect. The BTA restored normal trade relations between the two nations for the first time since the end of the Vietnam War. 5 The agreement resulted from a long process by which the United States attempted to convince the Vietnamese government to enter the global marketplace. The United States enticed Vietnam with predictions that the BTA would help Vietnamese farmers break into the world market. 6 Additionally, the agreement called for the reciprocal lowering of tariffs on imports. 7 Initially, both sides seemed to prosper from the agreement, and Vietnam enjoyed many benefits from its newfound trading partner. 8 Notably, Vietnam gained nearly 20% of the $ 590 million U.S. catfish market. 9 Frozen catfish fillets imported to the United ...