Vietnam Ratifies Landmark Trade Deal With the United States

by Vu Kim Chung

30-11-2001

The national assembly in Vietnam has ratified its long-awaited trade agreement with the United States, marking the final step in the process of normalization between the former wartime enemies. The deal would give Vietnam access to the United States market at the same low tariffs enjoyed by most other nations. It would also open up Vietnam to American traders. There was an air of excitement in the business community in Hanoi, as the deal marked a major step for Vietnam's engagement in global trade.

Trade Minister Vu Khoan held a press conference held in Hanoi on the afternoon of November 28, by the National Assembly's Committee for External Relations and the Trade Ministry. The briefing was conducted immediately after the Vietnamese National Assembly's approval of a resolution ratifying the Vietnam-US Bilateral Trade Agreement (BTA). Minister Khoan said that the agreement would benefit both countries as long as principles of respect for national independence, sovereignty, non-intervention into internal affairs, and the separation of commercial from political issues are upheld.

Chairman of the National Assembly's External Relations Committee Do Van Tai, who co-sponsored the press conference, said that immediately after the Vietnam-US BTA was passed, it drew keen interest and attention from the Vietnamese people and business community, who wished for early approval of the agreement.

Over the previous several months, Vietnam's National Assembly and government worked together to prepare for approval by the National Assembly, Mr Tai said. He added that the passing of a resolution to ratify the agreement by the National Assembly reflected the Vietnamese people's attitude towards the Vietnam-US trade agreement. Enforcement of the agreement would meet the aspirations of both nations, helping to strengthen Vietnam-US friendship and open up prospects for developing future trade co-operation between the two countries.

Minister Khoan and Chairman Tai answered questions from local reporters and foreign correspondents on the prospect of trade development between the two countries, the immediate actions of the Vietnamese government once the BTA becomes effective, the normalisation of the two countries' relations, and advantages that Vietnam would enjoy from the ratified BTA in the context of negotiations to join the World Trade Organisation.

Discussing the government's first steps following the ratification of the BTA, Minister Khoan said the National Assembly had instructed the government to spread the agreement to businesses and people nationwide; to map out a programme to adjust legal documents serving the implementation of the BTA; to garner information on related laws to present to local businesses; and to implement plans to increase the competitiveness of locally-made goods and enhance human resources training. All these steps are intended to successfully implement the agreement, the minister said. The Minister said that Deputy Prime Minister Nguyen Tan Dung would lead a Vietnamese government delegation and about 100 business people to visit the United States and explore the US market and business opportunities.

"Two-way trade between Vietnam and the US will likely surge after the BTA takes effect and Vietnam's textile and garment exports will enjoy US most favoured nation status (MFN)," Mr Khoan told reporters.

However, he pointed out, some National Assembly deputies had voiced their concern over the erroneous actions taken by the US House of Representatives in the period leading up to Vietnam's approval of the trade pact. The House passed the Vietnam Human Rights Act and a bill preventing Vietnam from exporting Basa and Tra catfish from the Mekong delta to the US, both of which went against the spirit of the agreement. Thus, it seems, the United States wishes to honour such agreements only when it is int the interests of the United States and in no other cases. He pointed out the fact that the United States had gone against the rules stipulated in the North American Free Trade Agreement when it refused to allow Canada to export softwood lumber since September.

The trade minister stressed that this concern had had an impact on the vote to ratify the Vietnam-US trade agreement. Many deputies voted against the agreement. Of the 380 NA deputies balloting, 278 voted for, 85 voted against, and the remaining 17 abstained.