House Passes U.S. Chamber-Backed Vietnam Trade Waiver

WASHINGTON, DC – By a wide margin, the House of Representatives today passed a U.S. Chamber of Commerce-backed trade waiver for Vietnam that would help American companies aggressively compete in the emerging market of the second largest country in southeast Asia.

The House of Representatives defeated, by a vote of 130 to 297, a "motion of disapproval" to renew a waiver from the "Jackson-Vanik" amendment of U.S. trade law. This waiver is a prerequisite for U.S. export promotion agencies to assist American business operating in Vietnam.

"The stronger than expected support for this legislation shows that Congress recognizes the importance of expanding markets for U.S. products," said Chamber President and CEO Thomas J. Donohue, who last year led a mission to Vietnam to assess business conditions there. "And Vietnam holds significant long-term potential for many U.S. companies and farmers. This waiver will give American businesses the leverage they need to succeed in this growing market."

Donohue also pointed out that last week's announcement of an "agreement in principle" between the United States and Vietnam on normalizing trade relations represents "a huge opportunity for American companies." The key point under the final agreement requires Vietnam to significantly open its markets to U.S.-made goods, agricultural products and services as well as strengthening the protection of U.S. intellectual property rights. In exchange, the United States would provide normal trade relations to Vietnam on an annual basis.

"Granting Vietnam a trade waiver for another year helps American companies compete with their European and Asian competitors, which already enjoy government-provided export assistance for their activities in Vietnam," said Donohue.

Donohue added that while he was pleased with the prospect of opening Vietnam to trade, he said the Chamber looks forward to reviewing the final details of the trade agreement.

The U.S. Chamber of Commerce is the world's largest business federation representing more than three million businesses and organizations of every size, sector and region, including the American Chamber of Commerce in Vietnam.

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