[Congressional Record Volume 152, Number 75 (Tuesday, June 13, 2006)]
[Senate]
[Pages S5781-S5786]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
By Mr. BAUCUS (for himself, Mr. Smith, Mr. McCain, Mr. Kerry, Mr.
Hagel, Mr. Lugar, Ms. Murkowski, and Mr. Carper):
S. 3495. A bill to authorize the extension of nondiscriminatory
treatment (normal trade relations treatment) to the products of
Vietnam; to the Committee on Finance.
Mr. BAUCUS. Mr. President, today, I introduce with Senator Gordon
Smith a bill to grant Vietnam permanent normal trade relations status.
Thirty-one years ago, the lights went out on the relationship between
the United States and Vietnam. Diplomatic relations were broken off,
and trade ceased. The story between our two countries became one of
refugees, prisoners of war, and soldiers missing in action. Hostility
and mistrust prevailed. Normalization was a dream of the visionary or
the fool.
In 1991--16 years after the last helicopters took off from the roof
of the U.S. Embassy in Saigon--flickers of reconciliation emerged out
of the darkness. In April of that year, President George H.W. Bush
presented the Vietnamese government with a roadmap for normalization.
That started a process of healing that lasted through successive
Republican and Democratic administrations and was supported by
courageous bipartisan action in the Congress: Between 1991 and 1993,
veterans Senator John Kerry, Senator McCain, and former Senator Bob
Smith led the Senate Select Committee on POW/MIA Affairs in the most
exhaustive investigation of the status of POWs and MIAs ever conducted.
In Feberuary of 1994, President Bill Clinton lifted the trade embargo
on Vietnam. 17 months later, in July of 1995, he announced the
normalization of political relations with Vietnam. In July of 2000, the
United States and Vietnam concluded a comprehensive Bilateral Trade
Agreement, allowing the United States to provide, for the first time,
nondiscriminatory treatment to Vietnam's products. And just last month,
the United States and Vietnam signed another trade agreement, paving
the way for Vietnam's accession to the World Trade Organization.
Today, we continue the legacy of reconciliation.
This morning, Senator Smith and I--along with Senators McCain, Kerry,
Hagel, Lugar, Murkowski, and Carper--introduced a bill to grant Vietnam
Permanent Normal Trade Relations status, or PNTR. I congratulate
Representatives Ramstad and Thompson for introducing the House version
of this bill.
This is the final step on the road to normalization. With this bill,
we will complete the process begun 15 years ago.
Today, we open a new book to the future.
With 83 million people and a median age just over 25 years old,
Vietnam is one of the most important emerging markets in Asia. Our
trade with Vietnam has grown to 30 times what it was in 1994.
With PNTR, we begin the story of full engagement between the United
States and Vietnam. It is a story of economic cooperation and cultural
understanding. It is a story where trade and markets overshadow
memories of guns and war.
I look forward to working with my Senate and House colleagues, the
administration, and all interested parties to pass this historic bill
by the August recess.
I ask that a copy of the text of the bill be printed into the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 3495
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 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.
SEC. 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.
Mr. SMITH. Mr. President, I rise to join the Senator from Montana,
Mr. Baucus, in offering legislation that would grant Vietnam permanent
normalized trade relations treatment and help to pave the way for
Vietnam's accession to the World Trade Organization. I am proud to also
be joined in this effort by Senators McCain, Kerry, Hagel, Lugar,
Murkowski, and Carper.
Last December, I was privileged to lead a delegation of U.S. Senators
to Vietnam. During our visit, we met with President Luong and other
Vietnamese officials to discuss the importance of our bilateral
relationship and the need to get a good market access agreement between
the United States and Vietnam that will help cement that relationship.
I congratulate Ambassadors Rob Portman and Susan Schwab and the USTR
team for their work to get this agreement. This is a great achievement.
Over the last decade, our relationship with Vietnam has been
characterized by increased cooperation and engagement. The passage of
our legislation will enhance those ties and create new economic
opportunities for U.S. businesses.
[[Page S5786]]
In recent years, Vietnam has undertaken a number of market-based
economic reforms, including the reduction of government subsidies,
tariffs, and non-tariff barriers, and extensive legal reforms. These
reforms have spurred dramatic economic growth. Vietnam is now the
fastest growing economy in Southeast Asia and a growing market for U.S.
exporters.
In 2000, the United States and Vietnam concluded a bilateral trade
agreement. Since that agreement entered into force, U.S. exports to
Vietnam have increased by 150 percent. Last year alone, U.S. exports to
Vietnam rose by 24 percent.
The recently negotiated market access agreement will build upon that
success by further lowering trade barriers to a wide range of U.S.
industrial and agricultural products and services. Upon Vietnam's
accession to the WTO, U.S. businesses will enjoy greater access to a
market of more than 83 million people.
Agricultural producers will benefit from immediate tariff reductions
on U.S. exports as well as new commitments by Vietnam to improve
implementation of sanitary and phytosanitary measures. Oregon growers
will benefit as tariffs on apples and pears are cut from 40 percent to
10 percent over the next 5 years and tariffs on frozen French fries are
reduced from 50 percent to 13 percent over the next 6 years.
Oregon manufacturing and branding companies have long had a presence
in Vietnam. These companies will immediately benefit from increased
market access and greater regulatory transparency.
Having Vietnam within the rules-based global trading system will be
good for U.S. businesses. This accession agreement will be key to
ensuring that Vietnam follows global trade rules.
It will also ensure that the Vietnamese people will be able to
realize the benefits of trade liberalization. By increasing
transparency and implementing market-based reforms, Vietnam is
essentially opening itself to international commerce. Countries that
open themselves to trade attract investment, which in turn creates jobs
and enhances individual welfare.
The passage of PNTR legislation will mark the final step toward
normalizing our relationship with Vietnam. This bill represents a
historic moment in our relationship with Vietnam and a definitive
statement of how we have moved beyond our past divisions.
I am especially pleased with the strong bipartisan support that we
have received for this bill. I am hopeful that we will be able to move
this bill before Congress leaves for the August recess, so that it can
be signed into law before President Bush's visit to Vietnam in
November.
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