News-Info-Alerts

To: ALL

From: Andi Wolos & Bob Necci

(POW-MIA InterNetwork)

Re: US-VN Trade Hearings

Date: June 04, 1999

ADVISORY FROM THE COMMITTEE ON WAYS AND MEANS
Subcommittee on Trade
FOR IMMEDIATE RELEASE, Contact: (202) 225-1721
June 4, 1999
No. TR-12

Crane Announces Hearing on U.S.-Vietnam Trade Relations Congressman Philip M. Crane (R-IL), Chairman, Subcommittee on Trade of the Committee on Ways and Means, today announced that the Subcommittee will hold a hearing on U.S.-Vietnam Trade Relations, including the President's renewal of Vietnam's waiver under the Jackson-Vanik amendment to the Trade Act of 1974. The hearing will take place on Thursday, June 17, 1999, in the main Committee hearing room, 1100 Longworth House Office Building, beginning at 10:00 a.m.

Oral testimony at this hearing will be from both invited and public witnesses. Invited witnesses will include the Honorable Douglas "Pete" Peterson, US Ambassador to Vietnam. Also, any individual or organization not scheduled for an oral appearance may submit a written statement for consideration by the Committee or for inclusion in the printed record of the hearing.

BACKGROUND:

Vietnam's trade status is subject to the Jackson-Vanik amendment to Title IV of the Trade Act of 1974. This provision of law governs the extension of normal trade relations (NTR), including normal tariff treatment, as well as access to US Government credits, or credit or investment guarantees, to nonmarket economy countries ineligible for NTR treatment as of the enactment of the Trade Act. A country subject to the provision may gain NTR treatment and coverage by US trade financing programs only by complying with the freedom of emigration provisions under the Act. The extension of NTR tariff treatment also requires the conclusion and approval by Congress of a bilateral commercial agreement with the United States providing for reciprocal nondiscriminatory treatment. The Act authorizes the President to waive the requirements for full compliance with respect to a particular country if he determines that a waiver will substantially promote the freedom of emigration provisions, and if he has received assurances that the emigration practices of the country will lead substantially to the achievement of those objectives.

Since the early 1990s, the United States has taken gradual steps to improve relations with Vietnam. In February 1994, President Clinton lifted the trade embargo on Vietnam in recognition of the progress made in POW/MIA accounting and the successful implementation of the Paris Peace Accords. The United States opened a Liaison Office in Hanoi later that year. On July 11, 1995, President Clinton announced the establishment of diplomatic relations, which was followed by the appointment of former Congressman Douglas "Pete" Peterson as US Ambassador to Vietnam. In 1997, the Office of the United States Trade Representative began negotiations, which are still ongoing, toward the conclusion of a bilateral commercial agreement with Vietnam.

Because Vietnam has not yet concluded a bilateral commercial agreement with the United States, it is ineligible to receive NTR tariff treatment. However, if the President determines that a Jackson-Vanik waiver would substantially promote the freedom of emigration objectives under the Trade Act of 1974, US exporters to Vietnam are given access to US Government credits, or credit or investment guarantees, such as those provided by the Overseas Private Investment Corporation, the Export-Import Bank, and the US Department of Agriculture, provided that Vietnam meets the relevant program criteria.

On March 9, 1998, the President first determined that a Jackson-Vanik waiver for Vietnam would substantially promote the freedom of emigration objectives under the Trade Act of 1974. On April 7, 1998, the President issued Executive Order 13079, under which the waiver entered into force. The renewal procedure under the Trade Act requires the President to submit to Congress a recommendation for a 12-month extension no later than 30 days prior to the waiver's expiration. On June 3, 1998, the President renewed Vietnam's waiver for the next 12-month period. On June 3, 1999, the President again issued a 12-month waiver. The waiver authority will continue in effect unless disapproved by Congress within 60 calendar days after the expiration of the existing waiver. Disapproval, should it occur, would take the form of a joint resolution disapproving of the President's waiver determination. In the 105th Congress, a resolution of disapproval, H. J. Res. 120, was considered and failed by a vote of 163 to 260.

In 1998, two-way trade between the United States and Vietnam was valued at $827.6 million. United States exports to Vietnam last year totaled $274.2 million, and US imports from Vietnam equaled $553.4 million. Top US exports included machinery and transportation equipment, and chemicals and related products. Top US imports from Vietnam in 1998 included food and live animals, and miscellaneous manufactured articles.

In announcing the hearing, Chairman Crane stated: "This hearing will provide the Subcommittee with an opportunity to review Vietnam's Jackson-Vanik waiver and the progress that has been made on pending emigration cases of concern to the United States. It is also an occasion to assess progress made in cooperation on POW/MIA accounting. In addition, Vietnam is a significant potential market of 78 million people to US firms and workers in the important Southeast Asian region. I look forward to this chance to review the status of the ongoing negotiations with Vietnam toward a bilateral trade agreement, which must be concluded and approved by Congress before normal trade relations can be extended to Vietnam."

FOCUS OF THE HEARING:

The focus of the hearing will be to evaluate overall US trade relations with Vietnam and to consider the President's renewal of Vietnam's waiver under the Jackson-Vanik amendment to the Trade Act of 1974. The Subcommittee is interested in hearing testimony about Vietnam's emigration policies and practices, on the nature and extent of US trade and investment ties with Vietnam and related issues, and on the potential impact on Vietnam and the United States of a termination of Vietnam's waiver. Finally, witnesses may also address US objectives in the ongoing negotiations with Vietnam to conclude a bilateral commercial agreement.

DETAILS FOR SUBMISSIONS OF REQUESTS TO BE HEARD:

Requests to be heard at the hearing must be made by telephone to Traci Altman or Pete Davila at (202) 225-1721 no later than the close of business, Thursday, June 10, 1999. The telephone request should be followed by a formal written request to A.L. Singleton, Chief of Staff, Committee on Ways and Means, US House of Representatives, 1102 Longworth House Office Building, Washington, DC 20515. The staff of the Subcommittee on Trade will notify by telephone those scheduled to appear as soon as possible after the filing deadline. Any questions concerning a scheduled appearance should be directed to the Subcommittee on Trade staff at (202) 225-6649.

In view of the limited time available to hear witnesses, the Subcommittee may not be able to accommodate all requests to be heard. Those persons and organizations not scheduled for an oral appearance are encouraged to submit written statements for the record of the hearing. All persons requesting to be heard, whether they are scheduled for oral testimony or not, will be notified as soon as possible after the filing deadline.

Witnesses scheduled to present oral testimony are required to summarize briefly their written statements in no more than five minutes. THE FIVE-MINUTE RULE WILL BE STRICTLY ENFORCED. The full written statement of each witness will be included in the printed record, in accordance with House Rules.

In order to assure the most productive use of the limited amount of time available to question witnesses, all witnesses scheduled to appear before the Subcommittee are required to submit 200 copies, along with an IBM compatible 3.5-inch diskette in WordPerfect 5.1 format, of their prepared statement for review by Members prior to the hearing. Testimony should arrive at the Subcommittee on Trade office, room 1104 Longworth House Office Building, no later than Tuesday, June 15, 1999. Failure to do so may result in the witness being denied the opportunity to testify in person.

WRITTEN STATEMENTS IN LIEU OF PERSONAL APPEARANCE:

Any person or organization wishing to submit a written statement for the printed record of the hearing should submit six (6) single-spaced copies of their statement, along with an IBM compatible 3.5-inch diskette in WordPerfect 5.1 format, with their name, address, and hearing date noted on a label, by the close of business, Tuesday, June 22, 1999, to A.L. Singleton, Chief of Staff, Committee on Ways and Means, US House of Representatives, 1102 Longworth House Office Building, Washington, DC 20515. If those filing written statements wish to have their statements distributed to the press and interested public at the hearing, they may deliver 200 additional copies for this purpose to the Subcommittee on Trade office, room 1104 Longworth House Office Building, by close of business the day before the hearing.

FORMATTING REQUIREMENTS:

Each statement presented for printing to the Committee by a witness, any written statement or exhibit submitted for the printed record or any written comments in response to a request for written comments must conform to the guidelines listed below. Any statement or exhibit not in compliance with these guidelines will not be printed, but will be maintained in the Committee files for review and use by the Committee.

1. All statements and any accompanying exhibits for printing must be submitted on an IBM compatible 3.5-inch diskette in WordPerfect 5.1 format, typed in single space and may not exceed a total of 10 pages including attachments. Witnesses are advised that the Committee will rely on electronic submissions for printing the official hearing record.

2. Copies of whole documents submitted as exhibit material will not be accepted for printing. Instead, exhibit material should be referenced and quoted or paraphrased. All exhibit material not meeting these specifications will be maintained in the Committee files for review and use by the Committee.

3. A witness appearing at a public hearing, or submitting a statement for the record of a public hearing, or submitting written comments in response to a published request for comments by the Committee, must include on his statement or submission a list of all clients, persons, or organizations on whose behalf the witness appears.

4. A supplemental sheet must accompany each statement listing the name, company, address, telephone and fax numbers where the witness or the designated representative may be reached. This supplemental sheet will not be included in the printed record.

The above restrictions and limitations apply only to material being submitted for printing. Statements and exhibits or supplementary material submitted solely for distribution to the Members, the press, and the public during the course of a public hearing may be submitted in other forms.

The Committee seeks to make its facilities accessible to persons with disabilities. If you are in need of special accommodations, please call 202-225-1721 or 202-226-3411 TTD/TTY in advance of the event (four business days notice is requested). Questions with regard to special accommodation needs in general (including availability of Committee materials in alternative formats) may be directed to the Committee as noted above.