Text: USTR July 24 News Release on U.S.-Vietnam Trade Agreement
(Barshefsky praises agreement in principle)The United States and Vietnam have reached "an agreement in principle" on the terms of a bilateral trade pact between the two countries. American negotiators have been working toward such an agreement with Vietnam for more than three years.
"In this understanding, we have taken a major step forward," U.S. Trade Representative Charlene Barshefsky said in an announcement released July 24. "We will be working with the Vietnamese to complete this effort."
When the agreement is finalized, it will be submitted to Congress. Following approval by Congress through a Joint Resolution, the President would then be able to establish "Normal Trade Relations" (NTR) -- formerly called most-favored-nation (MFN) trade status -- with Vietnam.
NTR would allow Vietnam to export to the United States as other countries do. However, the communist regime's trade status would still be subject to annual renewal under the Jackson-Vanik provisions of the U.S. Trade Act of 1974 which cover trade with non-market economies.
Following is the text of the announcement:
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
Executive Office of the President
Washington, D.C. 20508
99-63
July 25, 1999
U.S. And Vietnam Arrive at an Agreement in Principle
U.S. Trade Representative Charlene Barshefsky today announced that negotiators for the United States and Vietnam have arrived at an agreement in principle on the terms of a bilateral trade agreement.
"This agreement in principle, reached between Deputy USTR Richard Fisher and Vietnam's Deputy Prime Minister Nguyen Than Dung and Trade Minister Truong Dinh Tuyen, is an important step forward, addressing a number of concerns across the range of trade issues," said Ambassador Barshefsky. "We will now consult with Congress and others, and work toward completion of a formal Bilateral Commercial Agreement and a mutual grant of Normal Trade Relations."
American negotiators have been working toward such an agreement with Vietnam for over three years. Today's understanding marks Vietnam's agreement in principle to address import quotas, import bans, and high tariffs as well restrictions on financial services, telecommunications, distribution, and other matters relevant to access to the Vietnamese markets of U.S. goods, services, agriculture, and intellectual property rights. Vietnam also agreed to a series of measures to ensure transparency in rules and regulations effecting trade.
"In this understanding, we have taken a major step forward," said Ambassador Barshefsky. "We will be working with the Vietnamese to complete this effort."
Once an agreement is finalized, it will be formally submitted to Congress. Congress would have to approve the agreement by Joint Resolution, after which the President would then be able to make effective Normal Trade Relations with Vietnam. This would be subject to annual renewal under the Jackson-Vanik Amendment.
Coupled with approval of Normal Trade Relations for Laos, this would mark full U.S. economic re-engagement with Indochina, as the U.S. has already reached commercial agreements with Cambodia and Laos, and granted Cambodia NTR.
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