Clock ticking on US-Vietnam trade
HANOI - Vietnam is running out of time to
sign a delayed trade agreement with the United States and tap
the pact's economic benefits, the U.S. ambassador to Hanoi
said on Friday.
Pete Peterson told Reuters Hanoi needed to sign the accord
quickly so the U.S. Congress could approve it before
Washington's political agenda became dominated by next year's
presidential election.
Analysts have said the agreement could be sidelined until 2001
or beyond if Vietnam missed that opportunity.
Peterson declined to comment on why Hanoi had balked at
signing the pact, and said it was unclear when the country's
leadership would be ready to put pen to paper.
The former enemies in the Vietnam War reached agreement in
principle on the pact in July, and U.S. officials had expected it
would be co-signed and enacted by the year-end.
But sources say the elite Communist Party politburo is still
debating the merits of the pact.
The agreement will open Vietnam's economy but also give it
access to the U.S. market at preferential tariffs, something
formerly called Most Favoured Nation (MFN) trade status.
Peterson said the best-possible scenario would be for the two
sides to sign the pact before Congress adjourned this year and
have it heard and approved early next year.
Congress is scheduled to adjourn on October 29, although its
session might extend into November, he said.
``Even if we are unable to go through the Congressional
approval process this year, this would put it at the front of the
agenda in 2000,'' Peterson said in an interview.
``If that were the case, then I think it is very feasible that
Congress would take it up and act by say mid-February, before
the presidential election heats up.''
Analysts expect the deal to take several weeks to move through
Congress. Vietnam's National Assembly also needs to ratify the
pact, but once given the green light by the politburo that would
be a formality.
U.S. WANTED HANOI TO SIGN AT APEC
Peterson said the United States had wanted the Vietnamese to
sign the deal at last September's summit of the Asia Pacific
Economic Cooperation (APEC) forum in New Zealand.
``We wanted to showcase the pact, not so much for us, but for
the Vietnamese. They opted not to, and as a result we are just
waiting for them to go through the debate process to determine
their next steps,'' Peterson said.
Peterson said he did not believe Vietnam wanted to renegotiate
parts of the pact.
But he said it was ``disconcerting'' Hanoi had yet to decide
whether to extend a waiver on a 50 percent surcharge on U.S.
goods imported to Vietnam.
Hanoi passed a law in 1998 that required the government to
hike tariffs by 50 percent on goods from nations that did not
accord MFN trade status to Vietnam.
Vietnam this year waived imposition of that tariff hike on U.S.
imports for 1999 because of the trade talks.
``That is a question that has to be resolved, and we have asked
for a response,'' Peterson said.
Reuters - October 15, 1999.
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