US Business Community Supports Closer Ties With Vietnam

by Glen Shapiro, LawAndTax-News.com, New York

24 May 2006

Politicians and the US business community alike have reacted favourably to the bilateral agreement reached in principle between the United States and Vietnam last week.

The bilateral market access agreement will lower trade barriers to a wide range of US industrial and agricultural products and services, and help clear the way for Vietnam’s accession to the World Trade Organization (WTO).

"This is a very good agreement for the United States. It opens a new and growing market for American agricultural goods, services, such as financial services, and manufactured products," US Trade Representative Rob Portman announced last week, continuing:

"This agreement also signals an historic step in our bilateral relationship. Vietnam recognizes that broad-based reform and economic liberalization are essential to its integration into the global economy. We intend to work hard with Vietnam to complete the process of its full accession to the WTO in the near future."

The agreement would substantially lower tariffs on US industrial and agricultural products and remove non-tariff barriers currently faced by US service providers. The agreement will also continue the process of political and economic reform in Vietnam, which includes increased transparency in commercial activity and adherence to the rule of law.

The formal signing of the bilateral agreement will take place in the near future, once both sides have undertaken the required legal consultations.

Speaking with regard to the agreement on the day that it was announced, Senator Max Baucus (D-MT) observed that:

“The road to normalization between the United States and Vietnam is almost complete. Today’s agreement on Vietnam’s WTO accession paves the way for the final step – Congress’s vote to grant Vietnam Permanent Normal Trade Relations. I intend to push this issue in the Senate and hope we can complete this process before the August recess."

Meanwhile, Peter M. Robinson, President, U.S. Council for International Business has stated that:

"This is a major milestone for a market that has great potential for U.S. trade and investment. Normalizing commercial ties with the Vietnamese has been a longstanding objective of USCIB and its member companies, and I welcome yesterday's announcement of a bilateral market access agreement.”

Matthew Daley, President of the US-ASEAN Business Council announced following the in-principle agreement that:

"Vietnam’s accession to the WTO is of enormous significance, and our companies look forward to accessing the new business opportunities that are presented. This agreement confirms Vietnam’s commitment to market reform and international economic liberalization.”

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