Socialist Republic of Vietnam

WASHINGTON — Viet Nam reached an agreement- in-principle yesterday with the US, the final country with which it has to conclude bilateral negotiations, paving the way for Viet Nam to join the World Trade Organisation.

The agreement would be finalised soon, according to a press release issued yesterday by the Vietnamese negotiating team.

Reaching agreement to end the 12th round of bilateral negotiations with the US marked a new stage in the Viet Nam-US relationship, the delegation’s press release said, expressing optimism that the US Congress would soon grant Viet Nam Permanent Normal Trade Relations (PNTR).

The event was in line with the interests of both countries, creating an important prerequisite for equal co-operation and mutual benefits in many fields as stated in the Viet Nam – US Joint Statement signed in June 2005 during Prime Minister Phan Van Khai’s visit to the US.

US Trade Representative Rob Portman said that the agreement was "a very good agreement for the United States .... It opens a new and growing market for American agricultural goods and services, such as financial services and manufactured products."

Portman added, "This agreement also signals an historic step in our bilateral relationship. Viet Nam recognised that broad-based reform and economic liberalisati on are essential to its integration into the global economy."

Bilateral trade volume has steadily increased since the two countries signed their Bilateral Trade Agreement in 2001, reaching nearly US$8 billion last year.

US business applauds

The US-Viet Nam Trade Council, the US-ASEAN Business Council, and the US-Viet Nam WTO Coalition applauded the agreement-in-principle reached yesterday.

The Trade Council issued a bulletin stating that the US is the final country to conclude bilateral negotiations with Viet Nam in order for it to join the WTO. The agreement now paves the way for the Congressonal process of extending PNTR to Viet Nam.

"This is a great achievement for our two nations and an historic day. We congratulate both sides for the solid agreement that has been reached," said Trade Council president Virginia B. Foote. "As the next step, the US business community is commited to attaining the extension of PNTR for Viet Nam by our Congress this summer and look forward to welcoming Viet Nam as a member fo the WTO soon."

"Viet Nam’s accession to the WTO is of enormous significance, and our companies look forward to accessing the new busness opportunities that are presented," said Matthew P. Daley, president of the US-ASEAN Business Council.

"This agreement confirms Viet Nam’s commitment to market reform and international economic liberalisation."

Source: VNS

STATEMENT BY SPOKESMAN OF THE EMBASSY OF VIETNAM IN THE UNITED STATES NGUYEN THE CUONG:

"This is an important agreement, opening the possibility for Vietnam to become a WTO member in a near future. Vietnam’s in-depth, comprehensive reform and its rapid integration into the world economy will help boost Vietnam’s development at a quickening pace and continuously raise the living standards of all Vietnamese people.

The conclusion of the agreement and the passage by the U.S. Congress of the Permanent Normal Trading Relations (PNTR) with Vietnam will complete the normalization of relations between the two countries and bring about great opportunties for the two countries to rapidly enhance the bilateral relations, first and foremost, the equal and mutually beneficial cooperation in economic and trade fields.

The accession of Vietnam to the WTO and a fully normalized relationship between Vietnam and the US will set in favorable atmosphere for the success of the APEC Summit 2006 in Hanoi and President Bush’s visit to Vietnam."

PRESS RELEASE BY OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE (USTR)
May 14, 2006

WASHINGTON – The United States and Vietnam have reached an agreement in principle on a bilateral market access agreement that will lower trade barriers to a wide range of U.S. industrial and agricultural products and services and h“This is a very good agreement for the United States. It opens a new and growing market for American agricultural goods, services, such as financial services, and manufactured products. This agreement also signals an historic step in our bilateral relationship. Vietnam recognizes that broad-based reform and economic liberalization are essential to its integration into the global economy. We intend to work hard with Vietnam to complete the process of its full accession to the WTO in the near future.” U.S. Trade Representative Rob Portman. elp clear the way for Vietnam’s accession to the World Trade Organization (WTO).

“This is a very good agreement for the United States. It opens a new and growing market for American agricultural goods, services, such as financial services, and manufactured products,” said U.S. Trade Representative Rob Portman. “This agreement also signals an historic step in our bilateral relationship. Vietnam recognizes that broad-based reform and economic liberalization are essential to its integration into the global economy. We intend to work hard with Vietnam to complete the process of its full accession to the WTO in the near future.”
The agreement would substantially lower tariffs on U.S. industrial and agricultural products and remove non-tariff barriers currently faced by U.S. service providers. The agreement will also continue the process of political and economic reform in Vietnam, which includes increased transparency in commercial activity and adherence to the rule of law.

The formal signing of the bilateral agreement will take place in the near future once both sides have undertaken the required legal consultations.

SENATOR JOHN MCCAIN STATEMENT ON U.S.-VIETNAM TRADE AGREEMENT
For Immediate Release
Monday, May 15, 2006

Washington D.C. – Today, U.S. Senator John McCain (R-AZ) released the following statement regarding the U.S.-Vietnam Trade Agreement: "This step, which must be followed by Congress granting Permanent Normal Trade Relations (PNTR) status, is a milestone in the normalization of ties between our two countries. It will benefit each of us economically, and illustrates concretely how we have put our divisions behind us." Senator John McCain

I am pleased that the U.S. and Vietnam have reached agreement in principle for Vietnam to join the World Trade Organization this year. This step, which must be followed by Congress granting Permanent Normal Trade Relations (PNTR) status, is a milestone in the normalization of ties between our two countries. It will benefit each of us economically, and illustrates concretely how we have put our divisions behind us.

 
I look forward to working with other senators to pass PNTR for Vietnam this summer, with an eye toward Vietnam joining the WTO by the time of President Bush's visit to Hanoi in November.

BAUCUS APPLAUDS INITIAL AGREEMENT IN VIETNAM TRADE TALKS
Top Finance Committee Democrat to be at Forefront of Senate Effort on PNTR
Sunday, May 14, 2006 202-716-2674
Washington, DC – U.S. Senator Max Baucus (D-Mont.) today welcomed the conclusion of an “agreement in principle” on trade relations between the United States and Vietnam. This deal paves the way for Congress to vote on granting Vietnam Permanent Normal Trade Relations (PNTR) and for Vietnam to join the World Trade Organization (WTO). The United States and Vietnam expect to sign this agreement in the coming weeks.

“The road to normalization between the United States and Vietnam is almost complete,” said Baucus. “Today’s agreement on Vietnam’s WTO accession paves the way for the final step – Congress’s vote to grant Vietnam Permanent Normal Trade Relations. I intend to push this issue in the Senate and hope we can complete this process before the August recess.”

“The road to normalization between the United States and Vietnam is almost complete. Today’s agreement on Vietnam’s WTO accession paves the way for the final step – Congress’s vote to grant Vietnam Permanent Normal Trade Relations. I intend to push this issue in the Senate and hope we can complete this process before the August recess.” Senator Max Baucus.

PNTR, also known as Most-Favored Nation status, is a pledge of non-discrimination. A grant of PNTR is a promise not to treat imports from one country more harshly than those from another country. Vietnam is currently ineligible for PNTR because it is subject to the provisions of the Jackson-Vanik law, which withholds PNTR from certain Communist or formerly Communist countries. The United States typically terminates a country’s Jackson-Vanik status and grants that country PNTR as part of its accession to the WTO.

“Today’s agreement will further open Vietnam to U.S. products, and is a great accomplishment for Ambassador Portman and his team. The deal requires Vietnam to reduce tariffs on key U.S. goods, including Montana beef. It also provides enhanced access for U.S. companies to enter Vietnam’s increasingly vibrant banking, insurance, telecom, and other services markets.”

To complete its WTO accession, Vietnam still must satisfy WTO members that its laws and regulations comply with WTO rules. Vietnam hopes to join the 149-member global trade body this year.

PRESS RELEASE BY THE U.S.-VIETNAM TRADE COUNCIL (USVTC) AND THE US-ASEAN BUSINESS COUNCIL (USABC)

US Businesses Applaud US-Vietnam WTO Agreement Reached

Washington, DC (May 14, 2006) - The U.S.-Vietnam Trade Council (USVTC), the US-ASEAN Business Council (USABC) and the US-Vietnam WTO Coalition applaud and welcome the bilateral agreement in principle that has been reached between the United States and Vietnam on its accession to the WTO.

“This is a great achievement for our two nations and a historic day. We congratulate both sides for the solid agreement that has been reached,” said USVTC President Virginia B. Foote. “As the next step, the US business community is committed to attaining the extension of PNTR for Vietnam by our Congress this summer and look forward to welcoming Vietnam as a member of the WTO soon.”

“Vietnam’s accession to the WTO is of enormous significance, and our companies look forward to accessing the new business opportunities that are presented”, said USABC President Matthew P. Daley. “This agreement confirms Vietnam’s commitment to market reform and international economic liberalization.”

 “This is a great achievement for our two nations and a historic day. We congratulate both sides for the solid agreement that has been reached. As the next step, the US business community is committed to attaining the extension of PNTR for Vietnam by our Congress this summer and look forward to welcoming Vietnam as a member of the WTO soon.” USVTC President Virginia B. Foote.

The commitments in the US-Vietnam WTO Bilateral Agreement will provide US companies with broader and deeper market access for a full range of goods and services. For its overall accession, Vietnam has committed to implementing key WTO agreements upon accession. Some of these include the Agreement on Sanitary & Phytosanitary Measures (SPS), Agreement on Technical Barriers to Trade (TBT), Agreement on Trade Related Aspects of Intellectual Property (TRIPs); Agreement on Trade Related Investment Measures (TRIMs), Agreement on Customs Valuation (CVA); and the Agreement on Import Licensing. Since 2004, Vietnam has passed more than 50 laws and numerous implementing regulations to come into compliance with international trade rules.

The US is the final country to conclude bilateral negotiations with Vietnam in order for it to join the WTO. The agreement now paves the way for the process to extend Permanent Normal Trade Relations (PNTR) to Vietnam by the US Congress. To complete its accession bid, Vietnam must then finish multilateral discussions with its WTO Working Party and finalize a Report and Protocol of Accession for submission to the WTO’s General Council. The package is also expected to require ratification by Vietnam’s National Assembly. It is hoped that the accession process can be completed by November 2006, when Vietnam hosts world leaders, including US President Bush at the APEC Summit in Hanoi.
SOURCE: USTR, USVTC