The US and Vietnam signed a landmark trade agreement that provides Vietnam
with access to the US market on the same terms granted to most other nations.
In return, Vietnam agreed to sharply lower tariffs and other trade barriers
on a wide range of American products. The deal would reduce US tariffs
on Vietnamese products from the current average of about 40% to less than
3%.
The treaty covers five major areas of trade: market access; investments;
services; intellectual property; and government regulations. Annual reviews
will ensure Vietnam's compliance. Vietnam balked at a similar accord a
year ago, but analysts said economic woes and the US trade pact with China
forced Vietnam to agree to open its markets.
Both houses of Congress must approve the agreement. However, with the
dwindling number of days left on the legislative calendar, this is unlikely
to happen this year. Additionally, because Vietnam is a communist country,
its trade relationship with the US would be subject to an annual renewal
vote in Congress until Hanoi won membership in the WTO, which could take
many years.
Fall Congressional Agenda
Now that Congress is set to return to work after a month-long summer
recess, what can we expect to see on the agenda? Much of the attention
in September will focus on funding the government, as President Clinton
decides which spending bills to sign and which to veto.
However, also on the top of the agenda will be legislation granting
permanent normal trade relations status to China. The Senate will vote
on the bill in mid-September (see related story Inside Washington). If
no amendments are added, it will go straight to the president for signature.
One other issue House and Senate conferees will try to untangle is a
bankruptcy measure that includes a minimum wage increase. House Speaker
Hastert's (R-IL) spokesman recently stated, "I think the minimum wage increase
is going to happen." Senate Minority Leader Tom Daschle (D-SD) said he
will push for votes in September on the minimum wage and managed care legislation.
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