<http://www.nytimes.com/2006/11/14/washington/14trade.html> November 14, 2006 A Setback for Vietnam Trade Bill By STEVEN R. WEISMAN
WASHINGTON, Nov. 13 — In an embarrassing legislative setback for the administration, the House of Representatives defeated a measure late Monday that the president had sought to normalize trade relations with Vietnam, four days before President Bush was scheduled to leave for his first visit to that country.
The setback may be only temporary, however.
The legislation embodies approval by Congress of what is known as "permanent normal trade relations" with Vietnam, which would make it easier for that country to join the World Trade Organization and would allow American companies to share in the benefits of the open market.
The legislation received a majority vote but fell short of the two-thirds needed for passage under special rules that speeded its consideration in the House. The vote came on the first day of the lame-duck session in which the outgoing House, still controlled by a Republican majority, met to pass crucial bills by the end of this year.
The legislation received 228 votes in favor and 161 against, but it needed 32 more votes to pass on Monday. House Republican leaders said they would bring the legislation back in the next couple of days under normal procedures, which require only a majority, or 218 votes, for passage.
Though perhaps symbolic, the defeat in the House was an embarrassment not only for Mr. Bush but also for the departing Republican leaders, who had earlier in the day expressed confidence that they had the two-thirds needed for the bill to pass in the House.
Republican leaders expect the bill to pass the Senate later this week, despite the misgivings from some lawmakers.
The White House still hopes for the bill's approval in the next couple of days so that Mr. Bush can cite its passage as a milestone in relations with Vietnam while attending the Asia Pacific Economic Cooperation summit meeting in Hanoi.
The loss, however temporary, was also a portent that trade bills could face tougher odds in the lame-duck session and in January, when Democrats take control of both the House and Senate. Many Democrats who won election last week pledged to try to block trade bills they viewed as threatening American jobs.
It is not clear whether the preliminary defeat was spurred by anti-trade sentiment or lingering sentiment against Vietnam, which many conservatives still regard as an enemy three decades after the end of a war in which tens of thousands of Americans died.
Trade bills for Peru, other Andean nations and a larger body of poor countries in Africa, Asia and Latin America are also on the schedule for the lame-duck Congressional session, and it is not clear whether the defeat of the Vietnam bill would damp the chances for these bills.
There was no immediate comment on the defeat from the Bush administration.
Susan C. Schwab, the chief United States trade negotiator, flew to Vietnam on Monday for what had been planned as a set of meetings to celebrate a step forward for a country that was a bitter enemy of the United States a generation ago.
Ms. Schwab had called on Congress to approve the measure to "integrate this economically vibrant country into the global community of trading nations" and "open up exciting new trade and investment opportunities" for American companies.
The Bush administration has argued that despite the past bitterness with Vietnam, and a Vietnamese economy that is still heavily influenced by the government, the best strategy to open it up to private investment from the West is to have Vietnam become a member of the World Trade Organization, which oversees trade rules. Trade negotiators last week approved Vietnam's entry into the W.T.O.
The legislation is necessary because a cold-war-era measure known as the Jackson-Vanik law requires an annual review of Vietnam's political and economic practices and an annual granting of trade preferences, and that law must be rescinded under W.T.O. rules.
The administration argues that giving Vietnam "normal" trade preferences is the best way of getting it to adhere to the rule of law in trade relations, including provisions that allow the United States to pursue its rights through the organization.
Belonging to the trade organization also obliges Vietnam to end curbs on imports, eliminate certain subsidies and act to outlaw piracy of American software, videos and other copyrighted items.
Even under the law, however, the United States still has the right to designate Vietnam a "nonmarket economy" — that is, a state-controlled economy that continues to operate under Communist principles. But the Bush administration sought the trade bill as a means to get Vietnam to change.
-- Yoshie <http://montages.blogspot.com/> <http://mrzine.org> <http://monthlyreview.org/>