~ Le Viêt Nam, aujourd'hui. ~
The Vietnam News

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US Congress launches move to grant Vietnam normal trade status

WASHINGTON - The US Congress launched moves to normalize trade relations with Vietnam in a bid to complete Washington's reconciliation with the ex-arch enemy. "This step will allow America to deepen its relationship with one of the most dynamic and successful emerging markets in a key region of Asia," said Democratic Senator Max Baucus, ranking member on the Senate finance committee.

He and seven other senators introduced bipartisan legislation at the Senate to grant Vietnam Permanent Normal Trade Relations (PNTR) status while 22 lawmakers members presented a companion bill in the House. Vietnam, whose human rights record has come under constant questioning by Western groups, is currently ineligible for PNTR because it is subject to provisions of US law which withhold the status from certain communist or ex-communist countries. The United States typically terminates such legal provisions and grants countries PNTR as part of their accession to the World Trade Organization (WTO).

Vietnam and the United States completed their bilateral WTO accession agreement on May 31, paving the way for the Southeast Asian nation to join the global body. "Over a quarter century after the Vietnam War, the WTO agreement provides a key opportunity to help foster further domestic reforms in Vietnam," said Republican House Representative Jim Kolbe (news, bio, voting record), who co-sponsored the legislation. Welcoming the legislative action, US Trade Representative Susan Schwab said the bilateral WTO pact would promote "continued economic and political reform" within Vietnam.

But the PNTR legislation faces opposition from several lawmakers from both sides of the aisle, questioning Vietnam's human rights record. "Normalizing trade with Vietnam rewards a repressive Communist regime for its steadfast refusal to grant its citizens the most basic rights," said a letter from four legislators to the House ways and means committee, which has jurisdiction over critical trade and tax issues. "This flies in the face of our core value -- that all people deserve to live in freedom," the legislators, including noted rights campaigners Republican Chris Smith and Democrat Frank Wolf, said in the letter, a copy of which was made available to AFP.

Aside from trade, the United States is moving to boost political and military relations with Vietnam following restoration of diplomatic relations in 1995, 20 years after the end of the Vietnam War. Some analysts see it as part of US strategy to shore up alliances and military relationships with countries on China's periphery. Granting PNTR "will complete the process of reconciliation begun 15 years ago," Baucus said, vowing to secure passage of the legislation by August.

Business leaders representing about 100 American companies from Vietnam are in Washington meeting with lawmakers to press for early passage of the PNTR legislation. "Granting PNTR would give US companies increased access to one of Southeast Asia's fastest growing economies," said Myron Brilliant, vice president for East Asia at the US Chamber of Commerce, which is organizing the meetings on Capitol Hill. "American companies are excited of the stepped up trade and investment opportunities in this dynamic country," he said.

Walter Blocker, chairman of the American Chamber of Commerce in Vietnam, told AFP that WTO membership would "ensure even faster economic growth for Vietnam and create more opportunities for export of both intellectual property and durable goods. "WTO will make key parts of the economy open for competition for the first time," said Blocker, managing director of the diversified GANNON group in Vietnam, citing expected liberalization in areas such as telecommunications, insurance, banking and infrastructure development.

The United States is the fifth largest investor in Vietnam. Bilateral trade rose to more than 7.6 billion dollars in 2005, a five-fold increase since a bilateral trade agreement went into effect four years earlier. Vietnam hopes to become a WTO member before it hosts the Asia-Pacific Economic Cooperation ( APEC) summit in Hanoi in November, which President George W. Bush and other APEC leaders are planning to attend.

Agence France Presse - June 14, 2006.