JarJar Nixon's Blues Kitchen

June 15, 2006

SECTION: NEWS FROM THE WASHINGTON FILE

LENGTH: 656 words

HEADLINE: Congress Considering Normal Trade Relations Status for
Vietnam; Bills introduced in Senate, House would support market-access
agreement

BYLINE: Cassie Duong, Washington File Staff Writer

BODY:

Washington -- Following up on a bilateral market-access agreement
between the United States and Vietnam that was concluded in May, members
of both houses of the U.S. Congress have introduced legislation that
would authorize permanent normal trade relations (PNTR) status for
Vietnam.

The proposed legislation is an essential step in normalizing relations
between the two countries and making possible Vietnam's accession to the
World Trade Organization (WTO).

By granting PNTR, formerly known as "most favored nation" status, the
United States promises a country treatment in international trade equal
to that available to other similarly recognized nations.

Vietnam has been ineligible for this nondiscriminatory treatment because
it is subject to provisions of the Jackson-Vanik amendment to the Trade
Act of 1974, which withholds normal trade relations from certain
nonmarket economies that restrict emigration. The proposed legislation
would terminate the Jackson-Vanik restrictions.

Senator Gordon Smith (Republican of Oregon) and Senator Max Baucus
(Democrat of Montana) co-sponsored the Senate PNTR bill, S. 3495, which
was introduced on June 13 and referred to the Senate Committee on
Finance for consideration.

In order for a bill to become law, it must be approved by the committee
and identical versions of the bill must be passed by both the House of
Representatives and the Senate. Once a bill is passed by Congress, it
still requires the president's signature to take effect.

"Granting permanent normal trade relations status to Vietnam will
complete the process of reconciliation begun 15 years ago," said Baucus,
the ranking minority party member of the Senate Committee on Finance.
"This step will allow America to deepen its relationship with one of the
most dynamic and successful emerging economies in a key region of Asia."

Smith, also a member of the Senate Committee on Finance, said trade
could improve living standards in the United States and around the
world.

"International commerce creates new growth opportunities for our
manufacturers and agricultural producers," he said. "WTO membership for
Vietnam will help ensure that everyone's playing by the same rules."

Representative Jim Ramstad (Republican of Minnesota) and Representative
Mike Thompson (Democrat of California) introduced a companion bill, H.R.

5602, in the House of Representatives the same day as the Senate
version.
Both Ramstad and Thompson are members of the House Ways and Means
Committee, which will be considering the proposed legislation.

U.S. Trade Representative (USTR) Susan Schwab welcomed the proposed PNTR
legislation, which is a prerequisite for congressional approval of the
bilateral market-access agreement signed May 31. (See related article.)

That agreement would give U.S. farmers, workers and service providers
greater access to Vietnam's growing market while promoting continued
economic and political reform in Vietnam, according to Schwab.

"But we need passage of PNTR to realize these opportunities," she said.

Baucus said he looked forward to working with colleagues in the Senate
and the House, members of the Bush administration and other interested
parties to secure passage of the legislation before Congress recesses in
August.

"With PNTR, we begin the story of full engagement between the United
States and Vietnam," he said. "It is a story of economic cooperation and
cultural understanding. It is a story where trade and markets overshadow
memories of guns and war."

For more information on U.S. policies, see East Asia and the Pacific and
Trade and Economics.

The full text of a USTR news release is available on the office's Web
site.

A statement from Senator Baucus, a joint statement from Senators Baucus
and Smith, and the full text of S. 3495 are available at the Web site of
the Senate Committee on Finance.

(The Washington File is a product of the Bureau of International
Information Programs, U.S. Department of State.)