PNTR: VIETNAM - U.S. RELATIONSHIP FULLY NORMALIZED

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US Businesses Welcome PNTR Bills

The US-ASEAN Business Council (USABC) and the US - Viet Nam Trade Council (USVTC) welcomed the introduction of legislation in the United States Congress on June 13 to extend Permanent Normal Trade Relations (PNTR) status to Viet Nam as part of its accession to the World Trade Organisation (WTO).

USABC Executive Vice President and USVTC President Virginia B. Foote said the PNTR bills introduced in both the House and the Senate are of great importance to the US business community.

"The agreement our two countries signed two weeks ago in Ho Chi Minh City offers significant market access to US companies. We look forward to working with our Congressional counterparts to attain strong bipartisan support for its passage to ensure that US companies are able to take advantage of benefits that will be granted to all WTO members once Viet Nam accedes to the WTO," she said.

Meanwhile, US business corporations expressed their support for the approval of PNTR with Vietnam and said that this move will provide US companies with broader market access for a full range of goods and services, thus contributing to promoting bilateral US- Viet Nam relations.

Public Statements from US Government:

Public Statements from US Congress:

Public Statements from US Business Community:

June 21, 2006

The Honorable Dennis Hastert
Speaker
U.S. House of Representatives
H-232
Washington, D.C. 20515

Dear Speaker Hastert:
We are writing to urge the Congress to move forward expeditiously to approve
three important trade agreements that promote U.S. economic growth by opening foreign markets for American workers, farmers, and businesses: the U.S.-Oman Free Trade Agreement, the U.S.-Peru Trade Promotion Agreement, and legislation granting Permanent Normal Trade Relations to Vietnam.

These three agreements will (1) level the trade playing field, (2) expand U.S.
export opportunities, (3) promote the rule of law, and (4) strengthen our foreign policy and national security relationships with critical trading partners.

1. Level the Playing Field. These high-standard and commercially-meaningful
trade agreements will level the playing field and create new market access
opportunities for U.S. workers, farmers, and business. Leveling the playing field
through market-opening trade agreements is essential in today’s highly competitive world economy. For example, the United States has a weighted average tariff rate of less than 2%, and 98% of Peru’s imports already enter the United States duty-free under trade preference programs. U.S. exports to Peru and Oman, however, face higher tariffs that make U.S. products less competitive. According to the World Bank, the weighted average tariff of Oman is 14% and Peru 9%.

2. Expand U.S. Export Growth. Recent U.S. free trade agreements have a
solid record of promoting U.S. export growth. For example, the U.S.-Chile Free Trade Agreement was implemented on January 1, 2004, and immediately began to pay dividends for American businesses and farmers. U.S. exports to Chile surged by 33% in 2004 and by an additional 43% in 2005. While the U.S. International Trade Administration had forecast total export growth of 18-52% for the first 12 years of the agreement’s implementation, U.S. exports to Chile nearly doubled — a combined 91% in just two years. In addition, the U.S. trade surplus with Singapore nearly quadrupled over the first two years of implementation of the U.S.-Singapore Free Trade Agreement (2004-2005), reaching $5.5 billion last year.

Under the Peru and Oman trade agreements, U.S. business and agriculture
exporters would receive excellent access to these growing markets immediately. Over two-thirds of U.S. agricultural exports will be given immediate duty-free access to the Omani and Peruvian markets. U.S. consumer and industrial products will enjoy similar benefits, with over 80% of U.S. exports to receive duty free access upon implementation. Vietnam PNTR would enable the United States to receive the full benefits of Vietnam’s impending accession to the WTO and would advance and deepen a burgeoning bilateral economic relationship with one of the fastest growing economies in Asia.

3. Promote the Rule of Law. These agreements are also important because
they promote the rule of law in emerging markets around the globe and in many areas establish WTO-plus commitments. For example, with respect to government procurement, the trade agreements guarantee transparency in government procurement, mandate competitive bidding and require information be made publicly available — not just to well-connected insiders. The trade agreements also create a level playing field in the regulatory environment for services, including telecoms, insurance, and express shipments. Furthermore, these trade agreements improve legal protections for U.S. intellectual property rights as well as the actual enforcement of these rights. These are vital issues of importance to advancing U.S. global competitiveness. At the same time, these trade agreements provide an opportunity for the partner countries to improve their investment climate by undertaking legal and judicial reforms and resolving investment disputes (e.g., the criminalization of commercial disputes). Congress should insist these disputes be resolved.

4. Strengthen U.S. Foreign Policy and National Security Relationships. These
trade agreements are critical elements of U.S. foreign policy and national security objectives. The Oman and Peru agreements come at a time when these countries have taken positive steps to deepen economic and strategic ties with the United States — solidly rejecting threats from those who reject American democratic principles.

The Oman Agreement is the fourth trade agreement with countries in the Middle East and is part of a strategic vision of building closer and more prosperous allies in the region. In Peru, the stakes are also high in supporting a newly elected leader who is committed to deepening economic ties with the United States. Granting PNTR to Vietnam represents the capstone of the normalization process with Vietnam. Now is not the time to turn our backs on these allies.

Clearly, the importance of all three of these trade agreements lies in their ability
to signal to our global trading partners that the United States remains committed to liberalizing trade, expanding growth and opening markets for U.S. firms and farmers.

We understand that the legislative agenda is crowded, but given the economic,
foreign policy and national security significance of these agreements, we hope that the Congress will make the time to move them forward before the August recess. We stand ready to work with you to help move these agreements forward.

Sincerely,

3M
ABB, Inc.
Advanced Medical Technology Association
AeA
Aerospace Industries Association
Altria Group, Inc.
Aluminum Association
American Apparel and Footwear Association
American Architectural Manufacturers Association (AAMA)
American Chamber of Commerce & Industry of Panama
American Chamber of Commerce for Brazil/Rio de Janeiro
American Chamber of Commerce for Brazil/Sao Paulo
American Chamber of Commerce of the Dominican Republic
American Chamber of Commerce in Guatemala
American Chamber of Commerce of Bolivia
American Chamber of Commerce of El Salvador
American Chamber of Commerce of Jamaica
American Chamber of Commerce of Mexico
American Chamber of Commerce of Nicaragua
American Chamber of Commerce of Peru
American Chamber of Commerce of Trinidad and Tobago
American Chemistry Council
American Council of Life Insurers
American Farm Bureau Federation
American Forest and Paper Association
American Meat Institute
American Potato Trade Alliance
American Soybean Association
Applied Materials, Inc.
Association of American Chambers of Commerce in Latin America (AACCLA)
Association of Equipment Manufactures
Association of Food Industries
Automotive Trade Policy Council
Avaya, Inc.
Bankers’ Association for Finance and Trade
Bayer Corporate and Business Services
Bechtel Corporation
Brazil-U.S. Business Council
Bristol-Myers Squibb Company
Bryan Cave LLP
Business Roundtable
Business Council for International Understanding
C&M International
Cargill, Incorporated
Case New Holland
Caterpillar
Chamber of Commerce of the United States in Argentina
Chamber of Commerce Uruguay-U.S.A.
Chevron Corporation
Chilean-American Chamber of Commerce
Citigroup Inc.
Coalition for Employment through Exports
Coalition of Service Industries
Comprehensive Market Access Coalition
Corn Refiners Association
Costa Rican-American Chamber of Commerce
CropLife America
DaimlerChrysler Corporation
Denner Group International, Inc.
Diageo North America
Distilled Spirits Council of the United States
Dixon Area Chamber of Commerce & Industry
Donatti Translation & Interpreting
Ecuadorian-American Chamber of Commerce/Guayaquil
Ecuadorian-American Chamber of Commerce/Quito
EDS
Electronic Industries Alliance
Eli Lilly and Company
Emergency Committee for American Trade
Emerson
Fabricators & Manufacturers Association, Intl.
First Choice Corporate Housing Group, LLC
Florida Chamber of Commerce
Footwear Distributors and Retailers of America
Ford Motor Company
Exxon Mobil Corporation
Gap Inc.
Gas Appliance Manufacturers Association
General Motors Corporation
Greater Kansas City Chamber of Commerce
Grocery Manufacturers Association
Haitian-American Chamber of Commerce and Industry
Hewlett-Packard Company
Honduran-American Chamber of Commerce
Hormel Foods Corporation
IBM Corporation
Intel
International Dairy Foods Association
IPC, Association Connecting Electronics Industries
Liz Claiborne Inc.
Lockheed Martin Corporation
Louis Dreyfus Corporation
Mack Trucks, Inc.
Maryland/Washington D.C. District Export Council, Inc.
McDermott International, Inc.
Merck & Co., Inc.
Motor and Equipment Manufactures Association
Motorola, Inc.
National Association of Manufacturers
National Association of Wheat Growers
National Corn Growers Association
National Foreign Trade Council
National Marine Manufacturers Association
National Milk Producers Federation
National Oilseed Processors Association
National Paint and Coatings Association
National Retail Federation
National Shooting Sports Foundation
National U.S.-Arab Chamber of Commerce
Nestle USA
News Corporation
North American Export Grain Association
Oracle Corporation
Packaging Machinery Manufacturers Institute
Paraguayan-American Chamber of Commerce
Pernod Ricard USA
Pfizer Inc.
Pharmaceutical Research and Manufacturers of America
QUALCOMM Inc.
Retail Industry Leaders Association
Securities Industry Association
Semiconductor Equipment & Materials International
Sporting Arms & Ammunition Manufacturers' Institute
Sweetener Users Association
Target
Tech Net
Telecommunications Industry Association
Time Warner
The Dow Chemical Company
The American Association of Bahrain
The American Business Association, Eastern Province, Saudi Arabia
The American Business Council of Dubai and the Northern Emirates
The American Business Council of the Gulf Countries
The American Business Group of Riyadh
The Boeing Company
The Fertilizer Institute
The McGraw Hill Companies
The Muscat American Business Council
Toyota Motor North America, Inc.
Travel Goods Association
United Egg Association
United Egg Producers
United Technologies Corporation
USA Dry Pea and Lentil Council
USA Poultry and Egg Export Council
UPS
U.S. Chamber of Commerce
U.S. Council for International Business
U.S. Dairy Export Council
U.S. Hides, Skin and Leather Association
U.S.-Arab Chamber of Commerce
U.S.-Korea Business Council
U.S.-Middle East Free Trade Coalition
U.S. Rice Producers Association
Venezuelan-American Chamber of Commerce and Industry
Wheat Export Trade Education Committee
Yasmine Enterprises, Inc.

Source: VNA, USVTC