Senate backs Vietnam trade pact
The United States Senate has approved an
agreement normalising trade relations with
America's former enemy, Vietnam.
Senators voted 88 to 12 in favour of the
move, which was negotiated by the Clinton
administration last year.
The move is the
culmination of a
10-year reconciliation
process between the
two countries, which
only established formal
relations in 1995.
Last month, the House of Representatives
gave its backing to the agreement, which will
now go to President Bush to be signed into
law.
Senate Finance Committee chairman Senator
Max Baucus said the vote "represents an
important step in the healing process, a step
that has been a long time coming".
Clinton's role
The US and Vietnam fought a costly war in the
1960s and 1970s, which ended in a humiliating
defeat for America.
The trade embargo against Vietnam was only
lifted by President Clinton in 1994.
With a population of 80
million, Vietnam is the
world's 14th most
populous nation, but
trade with the US was
only $1.2bn last year.
Analysts say that could
more than double with
normal trade relations.
President Bush strongly
backs the deal but
some legislators say
Vietnam has not fully
co-operated on the
issue of missing US servicemen and should not
benefit from a trade pact with the US.
"We should expect Vietnam to improve its
record of human rights if we're going to trade
with them," said Senator Bob Smith, a New
Hampshire Republican.
Under current terms of trade, Vietnamese
imports to America are subject to tariffs of
40%, more than 10 times the level imposed on
most other countries.
Under the deal, both countries will lower trade
tariffs, while Vietnam will open its markets to
American service and investment companies.
But, as a communist country, Vietnam's normal
trade status will be subject to annual review.
BBC news service - October 3, 2001.
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