U.S. Chamber Hails House Action on Vietnam Trade

WASHINGTON, D.C. – The United States Chamber of Commerce hailed today's bipartisan House action to reject legislation that would undercut U.S. businesses' and farmers' ability to trade with Vietnam. By a wide margin (324-91), the House preserved the "Jackson-Vanik" waiver, which gives American businesses access to export assistance for Vietnam.

"Extending the trade waiver is good for our economy and will allow American companies remain competitive with their European and Asian counterparts," said Myron Brilliant, Chamber vice president Asia. "Vietnam is the second most populous country in Southeast Asia and it is vitally important to American farmers, businesses and their workers."

The Jackson-Vanik waiver permits U.S. businesses to seek export assistance from the U.S. Export-Import Bank, the Overseas Private Investment Corporation and other trade agencies. Such assistance includes loan guarantees, insurance and other export finance programs important to U.S. business. Foreign competitors routinely receive export subsidies from their home government, so U.S. export assistance is necessary if America is to remain competitive.

"Vietnam is a promising market that holds significant long-term opportunities for U.S. businesses and farmers," said Brilliant. "This vote recognizes the importance of Vietnam to American business."

The House has consistently defeated annual attempts to overturn the president's trade waiver for Vietnam. There was a more resounding margin in the vote this year than last year.

The increase in congressional support for trade with Vietnam reflects in part the completion of a bilateral trade agreement that will reduce tariffs across the board between the two countries. Vietnam would lower its tariffs and undertake a wide range of measures to open its market to U.S. goods, services and investment. Congress must still approve the trade agreement, which will pave the way for extending Normal Trade Relations to Vietnam on an annual basis. The Chamber supports holding a vote on the trade agreement as soon as possible.

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.

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