US business presses for quick vote on Vietnam deal http://today.reuters.com/stocks/QuoteCompanyNewsArticle.aspx?view=CN&storyID=2006-07-14T201230Z_01_N14322065_RTRIDST_0_TRADE-VIETNAM-USA.XML&rpc=66
Fri Jul 14, 2006
By Doug Palmer
WASHINGTON, July 14 (Reuters) - U.S. business groups, worried that a Vietnam trade deal will be delayed by election year politics, are pushing for votes in Congress before the August recess or soon afterward.
"If this thing gets bogged down in the fall and we have to wait until next session, U.S. business and U.S. agriculture loses," Brad Figel, global director of government and public affairs for sportswear company Nike Inc. (NKE.N: Quote, Profile, Research), told reporters on Thursday.
Vietnam, the fastest-growing economy in Southeast Asia, has agreed to cut agricultural and industrial tariffs and to open up more than 100 services sectors including banking, insurance, and telecommunications as part of a deal with the United States to join the World Trade Organization. As its part of the bargain, the United States must approve "permanent normal trade relations" with Hanoi.
Vietnam, like others on the dwindling list of communist countries, is subject to a Cold War provision known as Jackson-Vanik, which ties U.S. trade relations to emigration and other human rights concerns.
"Very simply, we have to repeal the Jackson-Vanik amendment in order to get the benefits," said Scott Miller, director of global trade policy for consumer products company Procter & Gamble Co. (PG.N: Quote, Profile, Research)
Unlike most trade bills, the Vietnam PNTR legislation can be amended, creating the possibility it could become a vehicle for a variety of amendments. Senate Finance Committee Chairman Charles Grassley, an Iowa Republican, wants a deal to limit the number of amendments before beginning action on the bill.
Meanwhile, House Republicans have been reluctant to vote on Vietnam until other less popular trade pacts with Oman and Peru are approved.
"We do worry if this bill slips into September" it could be more difficult to get approved ahead of November elections, said Virginia Foote, president of the U.S.-Vietnam Trade Council.
Hanoi's goal is to be a WTO member by the time it hosts President George W. Bush and other leaders for the annual Asia Pacific Economic Cooperation summit in November.
"Vietnam has broad support, so I think we are quite confident when we get to the floor we'll be fine. It's getting to the floor that's the challenge," Foote said.
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