U.S. Chamber Urges Lawmakers to Support Ties with Vietnam

WASHINGTON, D.C. — The United States Chamber of Commerce called on the House Ways and Means Subcommittee on Trade to support greater economic ties with Vietnam and keep the U.S. on the path toward forging meaningful ties with the second most populous country in Southeast Asia.

"Vietnam represents significant, long-term opportunities for American businesses and farmers," said Myron Brilliant, U.S. Chamber vice president for Asia. "With Vietnam undergoing substantial market reform, this is a time for more engagement — not less."

The Chamber urged lawmakers to uphold President Bush's waiver of the Jackson-Vanik provisions of the Trade Act of 1974 — the first step in extending most favored nation status to Vietnam. Most favored nation status is a prerequisite for the U.S. to receive the benefits from the recently completed U.S.-Vietnam Bilateral Trade Agreement.

The president's waiver also permits federal agencies involved in trade promotion, export assistance, and investment development to help U.S. companies and their workers export U.S. products to Vietnam. Without access to these programs, American businesses would be placed at a competitive disadvantage in relation to foreign competitors that receive export subsidies from their home governments.

"Extending the trade waiver is good for U.S.-Vietnam relations and helps strengthen American economic ties to Vietnam," said Brilliant. "The American business community has seen many positive reform steps take place in Vietnam as part of the implementation of the U.S.-Vietnam Bilateral Trade Agreement. The president's waiver is critical in maintaining that momentum."

The House of Representatives has consistently defeated annual attempts to overturn the president's trade waiver for Vietnam. Last year's vote was by an overwhelming margin (324-91). The increase in congressional support for trade with Vietnam reflected in part the realization that the bilateral trade agreement benefits American business and is the best way to bring about political and market reforms.

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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