Text: Daschle Introduces Resolution on Trade with Vietnam
(Measure necessary for bilateral trade agreement)The Senate's leading Democrat and leading Republican joined forces June 11 to introduce a resolution that would approve the extension of non-discriminatory treatment to products from Vietnam, legislation that is necessary for the implementation of a bilateral trade agreement between Washington and Hanoi.
Senate Majority Leader Tom Daschle (Democrat of South Dakota) and Senate Minority Leader Trent Lott (Republican of Mississippi) submitted Senate Joint Resolution 16 (S.J. Res. 16). Daschle succeeded Lott as the leader of the Senate June 6.
The resolution was referred to the Senate Finance Committee.
"This agreement marks another step in the long road toward normalizing relations between our two nations," Daschle said.
"When we pass this and other important trade legislation, we send the signal that we, as a Nation, are committed to engaging with countries around the globe by using our mutual interests as a foundation for working through our differences," the new Senate Majority Leader continued.
The bilateral trade agreement between the United States and Vietnam will result in "significant reduction in tariffs on agricultural and industrial products," Daschle said.
The agreement, Daschle went on, opens the communist nation to "American financial, banking and telecommunications services."
Daschle said the agreement and its provisions would bring Vietnam "one step closer" to compliance with the accords of the World Trade Organization (WTO).
Vietnam "has committed to abide by WTO standards regarding customs procedures, import licensing requirements and phytosanitary measures," he said.
The Hanoi regime has also agreed "to follow WTO agreements on intellectual property rights, which protect American copyrights, patents and trademarks," Daschle continued.
For its part, he said, the United States has promised to grant Vietnam normal trade relations.
"The practical effect of this action would be that products imported from Vietnam would now be subject to the same level of tariffs as products from almost every other country in the world," Daschle said.
The implementing resolution "would fulfill our obligation to grant Vietnam normal trade relations," he explained. He added, however, that the proposed legislation is "in no way a permanent extension of such treatment."
The Jackson-Vanik provisions of the Trade Act of 1974 allow for an annual review by Congress of an extension of normal trade relations to any non-market economy country, such as Vietnam.
The Jackson-Vanik amendment "mandates that a non-market economy country's access to American markets is conditioned on their completion of a bilateral commercial agreement with the United States and their policies on freedom of emigration," he said.
According to the statute, Daschle continued, "a non-market economy country like Vietnam must sign an agreement with the United States extending nondiscriminatory treatment" to U.S. products; thus, Hanoi must also grant the United States NTR.
Vietnam's access to American markets is further contingent on that country's policies on freedom of emigration, Daschle said.
"If the President determines that such policies meet certain standards, or that a waiver of the Jackson-Vanik provisions would, in fact, encourage further liberalization of their emigration policies, only then" can the United States grant such a country normal trade relations, he said.
The South Dakota Democrat noted, however, that no presidential determination on Vietnam has ever been defeated. He added that support for the waiver has been growing every year in the Senate and the House of Representatives.
Following are the texts of Daschle's June 11 speech and Senate Joint Resolution 16 from the Congressional Record:
(begin text of Daschle's remarks)
By Mr. DASCHLE
for himself and Mr. LOTT
(by request):S.J. Res. 16.
A joint resolution approving the extension of nondiscriminatory treatment to the products of the Socialist Republic of Vietnam; to the Committee on Finance.
Mr. DASCHLE. Mr. President, today I am pleased to introduce legislation that would implement a long-awaited bilateral trade agreement with Vietnam. This agreement marks another step in the long road toward normalizing relations between our two nations. When we pass this and other important trade legislation, we send the signal that we, as a Nation, are committed to engaging with countries around the globe by using our mutual interests as a foundation for working through our differences. By fully implementing this agreement, Vietnam will also send a clear message that it is interested in continuing, and completing, a process of reform and modernization of its economy and institutions.
The Clinton administration signed the bilateral agreement with Vietnam on July 13, 2000, after nearly four years of meticulous negotiations. Under terms of the agreement, Vietnam will reduce tariffs on approximately 250 products, about four-fifths of which are agricultural products. My own State of South Dakota will be among the beneficiaries of Vietnam's market opening commitments. As the second-largest producer of sunflower seeds, our farmers will no doubt benefit from the slash in duty on this product from the current level of 30 percent to 10 percent. Exporters of soybeans, furthermore, will see the rates drop by half, to only 5 percent.
In addition to the significant reduction in tariffs on agricultural and industrial products, the agreement opens Vietnam to American financial, banking and telecommunications services. While the agreement does not make Vietnam a member of the World Trade Organization, WTO, a number of its provisions bring Vietnam one step closer to compliance with WTO accords. Specifically, Vietnam has committed to abide by WTO standards regarding customs procedures, import licensing requirements and phytosanitary measures. In addition, Vietnam has also agreed to follow WTO agreements on intellectual property rights, which protect American copyrights, patents and trademarks. The same can be said for regulations involving American investment there. Hopefully, passage of this bilateral agreement will add momentum to Vietnam's bid for full membership in the global trading body.
The United States, in return, has promised to grant Vietnam normal trade relations, NTR. The practical effect of this action would be that products imported from Vietnam would now be subject to the same level of tariffs as products from almost every other country in the world. Vietnamese companies would no longer face significant tariff barriers to our market. The agreement does include, however, a safeguard provision to prevent a surge in Vietnamese imports from injuring our own domestic industries.
The implementing resolution introduced today would fulfill our obligation to grant Vietnam normal trade relations. Under this legislation, however, Vietnam's trading status would still be subject to annual Congressional review. The legislation is in no way a permanent extension of such treatment. This is due to the so-called Jackson-Vanik provisions of the Trade Act of 1974, which allow for an annual review by Congress of an extension of normal trade relations to any non-market economy country, such as Vietnam.
Specifically, the Jackson-Vanik amendment mandates that a non-market economy country's access to American markets is conditioned on their completion of a bilateral commercial agreement with the United States and their policies on freedom of emigration. According to the statute, a non-market economy country like Vietnam must sign an agreement with the United States extending nondiscriminatory treatment to our products. In other words, they must grant normal trade relations to the United States. Access to our markets is further contingent on their policies on freedom of emigration. If the President determines that such policies meet certain standards, or that a waiver of the Jackson-Vanik provisions would, in fact, encourage further liberalization of their emigration policies, only then can the United States grant these countries normal trade relations.
President Clinton first waived Jackson-Vanik provisions with respect to Vietnam in 1998 on the basis that such action would promote further liberalization of its emigration policies. The waiver has been extended every year since then. But since Vietnam does not currently have a bilateral agreement with the United States, and therefore does not receive normal trade relations, the waiver simply allows for the U.S. Overseas Private Investment Corporation, OPIC, and the U.S. Export-Import Bank to support U.S. businesses exporting to and/or operating there. The legislation I am introducing today would grant normal trade relations to Vietnam, meeting the second requirement of Jackson-Vanik, and therefore allow the market opening agreement to take effect.
The Presidential waiver of Vietnam's treatment under Jackson-Vanik has never been disapproved by Congress. In fact, support for the waiver has grown substantially in both chambers. Last year, for instance, 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. I am confident that such action indicates strong support by Members of Congress for passage of this agreement.
I am encouraged that President Bush has sent the agreement to Congress for final approval. Indeed, last month, I signed a letter urging him to do so as soon as possible. This is an important agreement, and today we are taking the first step towards swift Senate consideration.
(end text of Daschle's remarks)
(begin text of resolution)
Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That the Congress approves the extension of nondiscriminatory treatment
(Introduced in the Senate)
SJ 16 IS107th CONGRESS
1st Session
S. J. RES. 16Approving the extension of nondiscriminatory treatment to the products of the Socialist Republic of Vietnam.
IN THE SENATE OF THE UNITED STATES June 11, 2001
Mr. DASCHLE (for himself and Mr. LOTT) (by request) introduced the following joint resolution; which was read twice and referred to the Committee on Finance
JOINT RESOLUTION
Approving the extension of nondiscriminatory treatment to the products of the Socialist Republic of Vietnam.
Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That the Congress approves the extension of nondiscriminatory treatment with respect to the products of the Socialist Republic of Vietnam transmitted by the President to the Congress on June 8, 2001.
(end text of resolution)
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