This article first published by Ohmynews on 2006-08-03 08:05 (KST)
Senate Committee approves bill that would make Vietnam full trading partner
The United States Senate Finance Committee passed a bill authorizing "Permanent Normal Trade Relation" (PNTR) status for Vietnam on Aug. 1 by a vote of 18 to 20.
The approval marks a further step toward the full normalization of relations between the two former adversaries. Moreover, the Senate Finance Committee's approval of this bill just one week before Congress' summer recess is a clear indication that the U.S. may grant PNTR status to Vietnam before President Bush goes to Hanoi to attend the APEC summit in November.
The bill includes two main sections. The first one mentions grounds for granting PNTR for Vietnam, such as Bill Clinton's decision on normalization of relations with Vietnam, the bilateral agreement of May 2006, progress and commitments made by Vietnam during recent years, as well as the nation's cooperation on the POW/MIA issue. The second section calls for ending Article 4 of the 1974 Trade Law.
This is only an initial step, however. It will be voted on at the plenary session of the U.S. Senate. It must passed be out of the Committee on Finance and Tariffs and then a plenary session of the House of Representatives before being submitted to President Bush for signing.
Political observers believe the bill has a good chance in the U.S. Senate, because most senators support normalization of relations. It will face difficulties in the House of Representatives, however, since some legislators still take issue with Vietnam on religious freedom and human rights. Textile and garment special-interest groups also may want amendments and trade restrictions.
In the worst case, if the U.S. does not grant PNTR status this year, Vietnam can still apply for membership in the World Trade Organization (WTO), because the two countries finished bilateral negotiations for Vietnam's WTO membership in May 2006. In this situation, until PNTR is granted, the U.S. itself will be in violation of WTO equal trade and non-discrimination rules. The American business community would then be at a disadvantage, not the Vietnamese.
On July 27 the committee vote on this bill was delayed owing to the absence of some senators.
Political circles and American business generally hail this development, citing it as "the most important commercial bill in the past several years."
Vice Chair of the U.S. Senate Finance Committee, Senator Max Baucus, stressed, "With today's mark-up of the Vietnam PNTR bill, the committee can turn a new page. Unlike other trade bills, this bill has broad support from this committee and in Congress in general. And this bill also has overwhelming support from U.S. exporters and a number of non-governmental organizations."
At the meeting, Deputy U.S. Trade Representative Karan Bhatia said, "I believe that Vietnam's entry into the WTO will bring economic benefits for both countries, especially the U.S. At the same time, it further promotes Vietnam's renovation process, increasing benefits to the U.S. not only in Vietnam but also in the Southeast Asia region."
She also said that bilateral trade reached about US$1 billion in 2000. Since 2001, when the Bilateral Trade Agreement (BTA) came into effect, the figure has increased to $7.8 billion. In the same period, the value of U.S. exports to Vietnam reached $1.2 billion.
A similar reaction is evident from Vietnamese business owners eager to do business with the U.S. Tran Quoc Khanh, of the Trade Ministry's Multilateral Trade Policy Department and also of the Vietnamese negotiating delegation regarding Vietnam's WTO application, described the move as a logical development, especially after the two countries concluded their negotiations on Vietnam's entry into the WTO, and stressed that both will surely benefit from this move.
He is sure that the approval will strengthen Vietnamese business confidence in a stable export market and encourage them to work out a long-term investment strategy. Also, during the WTO negotiations, Vietnam committed to opening its markets to American business. Thus, the approval of PNTR status will help American business take advantage of this opportunity.
Vu Tien Loc, chair of the Vietnam Chamber of Commerce and Industry (VCCI), hailed the committee's prompt decision for the sake of the business interests of the two countries. "PNTR status will lay a firm foundation for Vietnamese and American business to establish long-term strategic partnerships and, it is to be hoped, will mean more momentum to facilitate the exchange of investment between the two countries in the near future," he said.
Le Van Dao, General Secretary of the Vietnam Textile and Garment Association (VITAS) said VITAS welcomed the committee decision, since Vietnamese textile and garment exporters will now enjoy fair competition in the U.S. market.
Senate Committee approves bill that would make Vietnam full trading partner
The United States Senate Finance Committee passed a bill authorizing "Permanent Normal Trade Relation" (PNTR) status for Vietnam on Aug. 1 by a vote of 18 to 20.
The approval marks a further step toward the full normalization of relations between the two former adversaries. Moreover, the Senate Finance Committee's approval of this bill just one week before Congress' summer recess is a clear indication that the U.S. may grant PNTR status to Vietnam before President Bush goes to Hanoi to attend the APEC summit in November.
The bill includes two main sections. The first one mentions grounds for granting PNTR for Vietnam, such as Bill Clinton's decision on normalization of relations with Vietnam, the bilateral agreement of May 2006, progress and commitments made by Vietnam during recent years, as well as the nation's cooperation on the POW/MIA issue. The second section calls for ending Article 4 of the 1974 Trade Law.
This is only an initial step, however. It will be voted on at the plenary session of the U.S. Senate. It must passed be out of the Committee on Finance and Tariffs and then a plenary session of the House of Representatives before being submitted to President Bush for signing.
Political observers believe the bill has a good chance in the U.S. Senate, because most senators support normalization of relations. It will face difficulties in the House of Representatives, however, since some legislators still take issue with Vietnam on religious freedom and human rights. Textile and garment special-interest groups also may want amendments and trade restrictions.
In the worst case, if the U.S. does not grant PNTR status this year, Vietnam can still apply for membership in the World Trade Organization (WTO), because the two countries finished bilateral negotiations for Vietnam's WTO membership in May 2006. In this situation, until PNTR is granted, the U.S. itself will be in violation of WTO equal trade and non-discrimination rules. The American business community would then be at a disadvantage, not the Vietnamese.
On July 27 the committee vote on this bill was delayed owing to the absence of some senators.
Political circles and American business generally hail this development, citing it as "the most important commercial bill in the past several years."
Vice Chair of the U.S. Senate Finance Committee, Senator Max Baucus, stressed, "With today's mark-up of the Vietnam PNTR bill, the committee can turn a new page. Unlike other trade bills, this bill has broad support from this committee and in Congress in general. And this bill also has overwhelming support from U.S. exporters and a number of non-governmental organizations."
At the meeting, Deputy U.S. Trade Representative Karan Bhatia said, "I believe that Vietnam's entry into the WTO will bring economic benefits for both countries, especially the U.S. At the same time, it further promotes Vietnam's renovation process, increasing benefits to the U.S. not only in Vietnam but also in the Southeast Asia region."
She also said that bilateral trade reached about US$1 billion in 2000. Since 2001, when the Bilateral Trade Agreement (BTA) came into effect, the figure has increased to $7.8 billion. In the same period, the value of U.S. exports to Vietnam reached $1.2 billion.
A similar reaction is evident from Vietnamese business owners eager to do business with the U.S. Tran Quoc Khanh, of the Trade Ministry's Multilateral Trade Policy Department and also of the Vietnamese negotiating delegation regarding Vietnam's WTO application, described the move as a logical development, especially after the two countries concluded their negotiations on Vietnam's entry into the WTO, and stressed that both will surely benefit from this move.
He is sure that the approval will strengthen Vietnamese business confidence in a stable export market and encourage them to work out a long-term investment strategy. Also, during the WTO negotiations, Vietnam committed to opening its markets to American business. Thus, the approval of PNTR status will help American business take advantage of this opportunity.
Vu Tien Loc, chair of the Vietnam Chamber of Commerce and Industry (VCCI), hailed the committee's prompt decision for the sake of the business interests of the two countries. "PNTR status will lay a firm foundation for Vietnamese and American business to establish long-term strategic partnerships and, it is to be hoped, will mean more momentum to facilitate the exchange of investment between the two countries in the near future," he said.
Le Van Dao, General Secretary of the Vietnam Textile and Garment Association (VITAS) said VITAS welcomed the committee decision, since Vietnamese textile and garment exporters will now enjoy fair competition in the U.S. market.
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