[Congressional Record Volume 143, Number 110 (Wednesday, July 30, 1997)]
[Senate]
[Pages S8366-S8367]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. KERRY (for himself and Mr. McCain):

  S. 1093. A bill to extend nondiscriminatory treatment (most-favored-
nation treatment) to the products of the Lao People's Democratic 
Republic, and for other purposes; to the Committee on finance.


   LAO PEOPLE'S DEMOCRATIC REPUBLIC MOST- FAVORED-NATION LEGISLATION

  Mr. KERRY. Mr. President, today I am introducing legislation, along 
with Senator McCain, to extend nondiscriminatory treatment most-
favored-nation treatment to the products of the Lao People's Democratic 
Republic. To avoid confusion, let me say at the outset that this bill, 
if enacted into law, would not give Laos special tariff treatment but 
rather put it on a par with the vast majority of our trading partners. 
This bill is identical to H.R. 2132, introduced in the House of 
Representatives by Congressman Crane. The administration strongly 
supports this bill.
  Recognizing the importance of a free market economy to economic 
growth and development, Laotian political leaders, in the late 1980's, 
made a fundamental decision to abandon Laos' centrally planned economic 
system and adopt free market reforms. Since taking this decision, the 
Laotian Government has embarked upon a constant process of reform. Over 
90 percent of the 600 state-owned enterprises have been privatized. The 
foreign investment code, first adopted in 1989, was further liberalized 
in 1994 to make it consistent with World Trade Organization [WTO] 
standards. Laotian tariffs have been consistently reduced. An import-
export regime consistent with WTO standards has been legislated. In 
1995 an intellectual property, patent and trademark protection law was 
enacted. Laos has complied with International Monetary Fund guidelines 
on fiscal policy, instituted making reforms, and is following stringent 
fiscal management to reduce inflation.
  In recognition of these developments, the Association of Southeast 
Asian Nations [ASEAN] admitted Laos as a member this month. The Laotian 
Government is now revising its laws and regulations, as necessary, to 
be consistent with ASEAN and ASEAN free trade agreement requirements.
  The United States and Laos have also taken steps to improve bilateral 
economic relations. Last year, an OPIC agreement was successfully 
negotiated. The U.S. Trade Representative's Office and Laotian 
officials are currently negotiating a bilateral trade agreement, which 
will also meet WTO standards.
  Reform in the economic area has been accompanied by major political 
changes as well in Laos. All but three political prisoners from the 
Southeast Asian war era have been released. In 1990 the Laotian 
Government adopted a constitution and bill of rights based on 
principles enshrined in the U.S. Constitution. In fact, American 
lawyers, serving as consultants, played a major role in writing these 
documents. Nationwide elections by secret ballot in 1992 led to the 
creation of a new National Assembly. Although still a one-party state, 
it is worth noting that individual candidates did not have to be 
Communist Party members to run in the elections, and in fact, several 
members of the assembly are not Communist Party members. The Laotian 
Government is also making a concerted effort to enhance the 
independence of the judiciary.
  The United States and Laos have established good working relations, 
particularly on two issues of great importance to us--POW/MIA and 
counter narcotics. Extending MFN to Laos makes sense economically, in 
terms of the Laotian commitment to economic reform, and in terms of our 
overall bilateral relationship.
  Mr. President, I ask unanimous consent that the full text of the bill 
be printed in the Record.
  There being no objection, the bill ordered to be printed in the 
Record, as follows:

                                S. 1093

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION I. CONGRESSIONAL FINDINGS.

       The Congress finds that--
       (1) the Lao People's Democratic Republic is striving to 
     shed centralized government control of its economy in favor 
     of market-oriented reforms;
       (2) extension of unconditional most-favored-nation 
     treatment would assist the Lao People's Democratic Republic 
     in developing its economy based on free market principles and 
     becoming competitive in the global marketplace;
       (3) establishing normal commercial relations on a 
     reciprocal basis with the Lao People's Democratic Republic 
     will promote United States exports to the rapidly growing 
     Southeast Asian region and expand opportunities for United 
     States business and investment in the Lao People's Democratic 
     Republic economy;
       (4) United States and Laotian commercial interests would 
     benefit from a commercial agreement between the United States 
     and the Lao People's Democratic Republic providing for market 
     access and the protection of intellectual property rights;
       (5) economic reform in the Lao People's Democratic Republic 
     is increasingly important as that country integrates into the 
     ASEAN free-trade area and accedes to the World Trade 
     Organization; and
       (6) expanding bilateral trade relations that include a 
     commercial agreement may promote further progress by the Lao 
     People's Democratic Republic on human rights and democratic 
     rule and assist that country in adopting regional and world 
     trading rules and principles.

[[Page S8367]]

     SEC. 2. EXTENSION OF NONDISCRIMINATORY TREATMENT TO THE 
                   PRODUCTS OF THE LAO PEOPLES DEMOCRATIC 
                   REPUBLIC.

       (a) Harmonized Tariff Schedule Amendment.--General note 
     3(b) of the Harmonized Tariff Schedule of the United States 
     is amended by striking ``Laos''.
       (b) Effective Date.--The amendment made by subsection (a) 
     applies with respect to goods entered, or withdrawn from 
     warehouse for consumption, on or after the effective date of 
     a notice published in the Federal Register by the United 
     States Trade Representative that a trade agreement obligating 
     reciprocal most-favored-nation treatment between the Lao 
     People's Democratic Republic and the United States has 
     entered into force.

     SEC. 3. REPORT TO CONGRESS.

       The President shall submit to the Congress, not later than 
     18 months after the date of the enactment of this Act, a 
     report on the trade relations between the United States and 
     the Lao People's Democratic Republic pursuant to the trade 
     agreement described in section 2(b).

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