Lao Prime Minister Visits US to Strengthen Economic Ties, Seek Tariff Reductions_blog

01 Oct, 2025

Lao Prime Minister Visits US to Strengthen Economic Ties, Seek Tariff Reductions

Prime Minister Sonexay Siphandone concluded a high-level working visit to Washington D.C., United States, from 27 to 30 September, aimed at deepening economic cooperation and pursuing a reduction in tariffs on Lao exports, during which he met with senior US officials, business leaders, and key advocacy groups.

Trade Talks on Tariff Reductions

During his visit, Prime Minister Sonexay held in-depth discussions with United States Trade Representative Jamieson Greer on advancing ongoing trade negotiations and exploring potential avenues to reduce tariffs.

He emphasized Laos’ readiness to further expand trade and investment engagement with the United States, highlighting ongoing domestic efforts to facilitate trade, including potential waivers of import tariffs on US goods, streamlining of non-tariff barriers, and stronger promotion of Lao products abroad.

These measures are intended to create a more attractive, transparent environment for bilateral trade, paving the way for deeper economic collaboration.

The US Trade Representative welcomed the Prime Minister’s direct engagement, describing the discussions as productive and affirming that the outcomes, particularly on tariff concessions, would be reported to the US President.

Background on US-Lao Trade, Investment Ties

Currently, the US imposes a 40 percent reciprocal tariff on imports from Laos, one of the highest rates applied to any trading partner.

According to a July report from the National Economic and Social Science Institute, this high tariff reflects the US perception of a trade deficit with Laos. Lao authorities, however, point to a stark discrepancy between the two sides’ trade figures.

While US data indicates a 2024 trade deficit of over USD 762 million, Laos’ Ministry of Industry and Commerce reports a modest trade surplus of just over USD 42 million, with Lao exports to the US valued at USD 283.8 million and imports at USD 241.6 million.

In addition to official meetings, Prime Minister Sonexay participated in the US-Lao Business Roundtable, where he showcased Laos’ investment potential and outlined government policies to support private sector growth.

The Prime Minister encouraged American companies to explore opportunities in Laos, stressing the country’s ongoing reforms to enhance the ease of doing business.

Humanitarian Cooperation Supports Economic Growth

Beyond economic discussions, Prime Minister Sonexay met with the advisory committee of Legacies of War, a US-based NGO dedicated to addressing the legacy of unexploded ordnance in Laos.

While primarily humanitarian in focus, these discussions also highlighted how removing development barriers, such as UXO contamination, can facilitate greater economic activity in affected areas.

Laos and the United States have a long history of cooperation across economic, humanitarian, and development issues, including MIA recovery efforts and UXO clearance programs.

The year 2025 marks the 70th anniversary of diplomatic relations between the two nations, while 2026 will celebrate the 10th anniversary of the Comprehensive Partnership, which provides a framework for strengthening ties across economic, political, and people-to-people exchanges.

Prime Minister Sonexay’s visit signals a commitment by Laos to resolve trade issues and enhance bilateral economic engagement, with the reduction of tariffs at the forefront of discussions.

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