[Vnbiz] A new era in US-Vietnam relations

[Phan, Tai]

Dec 14, 2006  
  
 
  
 A new era in US-Vietnam relations 

HANOI - The US Congress' approval of a bill to grant permanent normal trade ties with Vietnam has been welcomed by the US administration. President George W Bush praised the action, saying that it "marks a significant step forward in the process of normalizing relations with Vietnam and will benefit both our nations". 

He went on to say that "this designation will advance our trade and investment relations with Vietnam and ensure that the US shares in the economic benefits generated by Vietnam's imminent 


membership in the WTO". 

Vietnam will formally join the World Trade Organization as its 150th member on January 11, the Geneva-based global trade body announced on Tuesday. Vietnam has informed the WTO that it has ratified its membership agreement, and it will formally become a member one month later according to accession rules, the WTO said. 

Vietnam's National Assembly ratified the country's entry into the WTO on November 28, clearing the final hurdle for its membership. 

Foreign Ministry spokesman Le Dung said the US decision is "of major significance for the ties between Vietnam and the US, marking full normalization of the bilateral relationship, especially in economic and trade fields". 

The approval "will pave the way for both sides to implement their own commitments within the frameworks of World Trade Organization regulations and of the Vietnam-US Bilateral Trade Agreement to Vietnam's accession to the WTO, opening up new cooperation opportunities for the two peoples, particularly the business communities", he said. 

The US bill, which was part of a larger trade and tax package, grants Vietnam full trading rights without annual scrutiny by Congress. The legislation also allows companies in the US to take advantage of substantially lower tariffs that apply to all members of the WTO. 

Bush emphasized that Vietnam "is demonstrating its strong commitment to continuing economic reforms, which will support political reform and respect for human rights. The American people welcome the remarkable transformation and economic progress in Vietnam, and we will continue to work together to strengthen our ties." 

US Trade Representative Susan Schwab said she was pleased at the passage of this "critical" legislation. The measure will "afford the US access to Vietnam's fast-growing market and launch a new era in the relationship between our two countries", she said. 

The chairman of the American Chamber of Commerce in Vietnam, David Knapp, applauded the historic vote. He said, "American investors are attracted to Vietnam's strong gross-domestic-product growth, rapid industrialization, huge labor force, stable political situation, and the prospect of a better business climate under WTO rules." 

Republican Congressman Rob Simmons, who is a Vietnam War veteran, said the bill is significant not only in terms of its economic impact, but will help heal "war injuries". 

The Senate on Saturday approved 79-9 the bill during an all-night session. On Friday, the House of Representatives voted for it 212-184. The bill now has to be signed into law by Bush. 

The president of the US-Vietnam Trade Council and executive vice president of the US ASEAN Business Council, Virginia Foote, said: "We are extremely delighted that [the bill] has passed with strong bipartisan votes in both houses of Congress. US companies have worked very hard on the WTO agreement and welcome Vietnam into the global trading economy. 

"For the many who have been working on US-Vietnam normalization over the years, this success is particularly sweet. More than 10 years ago, we set on a path to overcome the war-embittered past, starting with lifting of a trade embargo. With normal relations granted, Vietnam is treated as an equal under the US trade law. Today marks a new, fully normalized era in our bilateral trade relations." 

(Asia Pulse/VNA)