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Bush Sends Vietnam Trade Pact to Congress
by Doug Palmer
Friday, June 08, 2001 7:10 p.m. EDT   
http://news.lycos.com/news/story.asp?section=Politics&storyId=182043

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WASHINGTON (Reuters) - President Bush on Friday sent Congress a historic 
agreement to normalize trade relations with former foe Vietnam, linking the 
deal to broader efforts to promote free trade and open markets globally. 

"The history of the previous century teaches us that trade is a powerful tool 
for improving and reforming economies and opening up entire societies," Bush 
said in statement. "I urge Congress to approve this agreement. 

Under the pact signed in July 2000 in Hanoi, the United States agreed to 
normalize trade relations in exchange for the communist-run country opening 
its market to increased U.S. goods, services and investment. 

Congressional approval, which is widely expected, would remove one of the 
last political vestiges of a bitter war that ended 2-1/2 decades ago with the 
defeat of U.S. and South Vietnamese forces and the establishment of the 
Socialist 

Vietnam is one of just a few countries that does not have "normal trade 
relations" with the United States. As a result, U.S. tariffs on products from 
the country average 40 percent -- more than 10 times the level for most other 
nations. 

A spokeswoman for Vietnam Ambassador Le Van Bang said he welcomed the action 
and "would like the trade agreement to be quickly approved in the U.S. 
Congress." 

Even with current steep U.S. duties, two-way trade with Vietnam has risen 
from $224 million in 1994 -- when former President Bill Clinton lifted the 
U.S. economic embargo -- to nearly $1.2 billion last year. Two-thirds of the 
latest tally represents Vietnamese sales to the United States. 

The bilateral trade pact commits Vietnam to an ongoing process of economic 
reform and market opening in exchange for the United States' extending normal 
trade relations on an annual basis, U.S. Trade Representative Robert Zoellick 
said. 

It also brings a reconciliation process begun nearly 10 years ago between the 
two countries closer to completion. 

U.S. business groups welcomed the move. 

Virginia Foote, head of the U.S.-Vietnam Trade Council, praised the agreement 
as "the most important step that has taken place since the end of the war. It 
provides a framework for building a strong and secure commercial relationship 
between our two countries." 


DISSIDENT REMAINS AN ISSUE 

Bush endorsed the agreement negotiated by the Clinton administration despite 
Vietnam's recent arrest of prominent Buddhist dissident monk Thich Quang Do. 

The United States has called for Do's release and Bush said he would continue 
"to press for improvements in Vietnam's overall record on human rights and 
religious freedom." 

Earlier this year, the Bush administration tried to link the Vietnam pact to 
a more controversial bill to give the White House the authority to negotiate 
a proposed free trade zone covering North and South America and new 
multilateral agreements under the World Trade Organization. 

While the White House has shed the idea of an omnibus trade bill, Bush still 
hoped to tie the Vietnam pact to his overall trade agenda. Approval would 
provide a "solid bipartisan foundation for action on other trade issues," he 
said. 

The Vietnam agreement enjoys the support of leaders of the Senate Finance 
Committee and the House of Representatives Ways and Means Committee. Under 
rules of the 1974 trade act, which has barred normal trade relations with 
Vietnam, those panels will have 45 days to act on the agreement before 
sending it the full House and Senate for a vote. 

The pact also has strong support among Vietnam War veterans in Congress, 
including Sen. John McCain, an Arizona Republican, Sen. Chuck Hagel, a 
Nebraska Republican, and Sen. John Kerry, a Massachusetts Democrat. 

With the agreement's arrival in Congress, "we're one step closer to winning 
one of the final battles to end the war in Vietnam," Kerry said. 



Copyright � 2001 Reuters Limited.
 

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