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The Vietnam News |
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HANOI - U.S.
Deputy Trade Representative
Richard Fisher said on Friday he
believed the United States and
Vietnam could soon reach a
long-awaited trade agreement that
would have ``historic potential.''
U.S./Vietnam "historic" trade pactFisher, speaking to reporters before meeting Vietnam Trade Minister Truong Dinh Tuyen, said progress made in negotiations this week in Hanoi had been promising. ``I think it's possible. I am here to bring to completion some of the remaining issues,'' Fisher said when asked if the former enemies could reach an agreement in principle by Saturday. Economists do not expect the trade deal to trigger a flood of American investment into communist Vietnam -- regarded as one of the toughest places in Asia to make money. But the agreement, once passed by the U.S. Congress and Vietnam's National Assembly, would aid Vietnamese exporters by allowing goods to enter the United States at the same low tariff levels imposed on goods from nearly every other nation. It could also help Vietnam's bid to join the World Trade Organisation, which sets global trading rules. And Fisher said success on an agreement would send a strong signal communist-ruled Vietnam was committed to improving the climate for foreign investors. ``We have a tremendous opportunity to seal an agreement that has historic potential,'' he told Tuyen before talks began on Friday. ``If we are successful, then what we accomplish will send a strong signal...that Vietnam is dedicated to creating conditions that will attract foreign investment.'' Sticking points on the pact have focused on getting Vietnam to commit to abolish non-tariff barriers and agree to a phased reduction on formal tariff rates. Talks on market access for U.S. goods and services have also been tough. Tuyen said the Vietnamese were willing to be flexible on certain issues, but gave no details. Sources close to the deal have said it was likely that by Saturday officials from both sides would either initial the pact, or sign a memorandum of understanding saying agreement had been reached in principle. Neither would be non-binding, but should pave the way for the agreement to be formally signed next month. It would then go to Congress and Vietnam's National Assembly. The pact would incorporate Normal Trade Relations (NTR), formally called Most Favored Nation (MFN) trade status. The current talks began in Hanoi on Tuesday and are an extension of the eighth round of trade negotiations held in Washington last month. Hanoi and Washington were enemies during the Vietnam War and have made incremental progress toward full economic relations since diplomatic ties were normalised in 1995. But analysts have said that with U.S. presidential elections slated for 2000, the whole issue could soon be put on ice unless Congress approves the deal before the year-end. Official media said on Friday that Vietnam/U.S. trade was worth $935 million last year from $450 million in 1995. Reuters - July 23, 1999. |