II Calendar No. 560 109th CONGRESS 2d Session S. 3495 IN THE SENATE OF THE UNITED STATES June 13, 2006 Mr. Baucus (for himself, Mr. Smith, Mr. McCain, Mr. Kerry, Mr. Hagel, Mr. Lugar, Ms. Murkowski, Mr. Carper, Mr. Crapo, Mr. Bennett, and Mr. Stevens) introduced the following bill; which was read twice and referred to the Committee on Finance July 31, 2006 Reported by Mr. Grassley, without amendment A BILL To authorize the extension of nondiscriminatory treatment (normal trade relations treatment) to the products of Vietnam.

1.

Findings

Congress finds the following: (1)In July 1995, President Bill Clinton announced the formal normalization of diplomatic relations between the United States and Vietnam. (2)Vietnam has taken cooperative steps with the United States under the United States Joint POW/MIA Accounting Command (formerly the Joint Task Force-Full Accounting) established in 1992 by President George H. W. Bush to provide the fullest possible accounting of MIA and POW cases. (3)In 2000, the United States and Vietnam concluded a bilateral trade agreement that included commitments on goods, services, intellectual property rights, and investment. The agreement was approved by joint resolution enacted pursuant to section 405(c) of the Trade Act of 1974 (19 U.S.C. 2435(c)), and entered into force in December 2001. (4)Since 2001, normal trade relations treatment has consistently been extended to Vietnam pursuant to title IV of the Trade Act of 1974. (5)Vietnam has undertaken significant market-based economic reforms, including the reduction of government subsidies, tariffs and nontariff barriers, and extensive legal reform. These measures have dramatically improved Vietnam’s business and investment climate. (6)Vietnam is in the process of acceding to the World Trade Organization. On May 31, 2006, the United States and Vietnam signed a comprehensive bilateral agreement providing greater market access for goods and services and other trade liberalizing commitments as part of the World Trade Organization accession process.

2.

Termination of application of title iv of the trade Act of 1974 to vietnam

(a)

Presidential determinations and extension of non-discriminatory treatment

Notwithstanding any provision of title IV of the Trade Act of 1974 (19 U.S.C. 2431 et seq.), the President may— (1)determine that such title should no longer apply to Vietnam; and (2)after making a determination under paragraph (1) with respect to Vietnam, proclaim the extension of nondiscriminatory treatment (normal trade relations treatment) to the products of that country. (b)

Termination of the Applicability of Title IV

On and after the effective date of the extension of nondiscriminatory treatment to the products of Vietnam under subsection (a), title IV of the Trade Act of 1974 shall cease to apply to that country.

July 31, 2006 Reported without amendment