[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.
                                 ______