U.S. Dept. of State - IIP: U.S.-Vietnam Relations

Rep. Rohrabacher Introduces Measure to Deny Vietnam Trade Waiver
(H. J. Res. 55 would also stop Vietnam from receiving NTR)
By Steve La Rocque and Peggy Hu
Washington File Staff Writers
Washington -- Representative Dana Rohrabacher (Republican of California) introduced House Joint Resolution 55 (H.J. Res. 55) into the House of Representatives June 21, a measure that would disapprove a trade waiver making Vietnam eligible to receive benefits from the U.S. Overseas Private Investment Corporation and the Export-Import Bank.
The waiver of the Jackson-Vanik amendment provisions to the Trade Act of 1974 would also make Vietnam eligible for normal trade relations (NTR) status, subject to renewal each year, should Congress approve the Vietnam bilateral trade agreement President Bush submitted June 8. Vietnam is one of six countries with whom the United States does not now have NTR, meaning that the lower tariff rates the United States applies to imports from nearly every other country are not applied to imports from Vietnam.
Because Vietnam is a non-market economy, the President must annually request a waiver of the Jackson-Vanik provisions to the Trade Act of 1974 -- and both the Senate and the House of Representatives must approve that waiver request -- for Vietnam to receive non-discriminatory treatment for its products.
Since normalization of relations between the two countries, Congress has always approved the annual trade waiver for Vietnam. Last year 330 members of the House voted in favor of the waiver's extension, and a bill disapproving the President's waiver was voted down by 94 Senators.
H.J. Res. 55, which would disapprove the waiver request, was referred to the House Ways and Means Committee. The measure was co-sponsored by Representatives Duncan Hunter (Republican of California) and Loretta Sanchez (Democrat of California).
(The Washington File is a product of the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)

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