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New momentum achieved in bilateral negotiations, says US trade official

HANOI, Vietnam - 01/21/06 - Despite the failure to reach a comprehensive agreement that would have cleared the way for Vietnam's on-going bid to become a member of the World Trade Organization (WTO), a senior US trade official has said the recent negotiations between both countries "narrowed" the gap on such issues as improved market access for US exporters in the services sector and industrial and agricultural tariffs.

The "intense" negotiations, which ended last Wednesday, "went well and efforts are expected to accelerate," said Dorothy Dwoskin. assistant US Trade Representative for WTO and Multilateral Affairs, who led the US negotiation team.

In a statement released at the conclusion of the negotiations, Dwoskin said the talks "sought to capitalize on the progress that the two countries have made on bilateral, and on multilateral issues" regarding WTO rules.

"Both sides worked very hard to narrow remaining differences," she said.  "We were pleased with our progress and believe the meetings this week have injected new momentum and energy into the negotiations."
 
Meetings with Vietnamese officials will reportedly resume after the US negotiation team has had time for consultations with Congress and interested parties in the US, according to a statement from the Office of the US Trade Representative.

Dwoskin said US negotiators were "particularly encouraged" by the concentrated efforts of Vietnam's National Assembly to pass legislation needed for Vietnam to join the rules-based WTO system.

The US, she said, is "committed to continuing to provide leadership in resolving multilateral issues, such as subsidies, trading rights, intellectual property rights protection, and the commercial activities of state-owned enterprises."

Assession to the WTO "is in keeping with Vietnam's newly announced Socio-Economic Development Plan, which calls for a vigorous program of economic growth, reform, and development," said Dwoskin.

Among the plan's stated goals are the country's full integration into the global economy by 2010, the raising of $840 billion in capital over the next five years, and the maintenance of "a high level of growth."

The country started applying for its WTO membership in 1995.

Since then, Hanoi has signed pacts with 22 WTO members, including the European Union, China and Japan, but missed its target of joining the trade body in 2005 as it still has to win agreement with the US, Australia and New Zealand, all key WTO members.

"WTO accession will enable Vietnam to complete the process of international economic integration and will allow the country to compete globally on an equal footing with its neighbors," the Hanoi Chapter of the American Chamber of Commerce (AmCham) said.

The business group "strongly supports and encourages Vietnam's accession at the earliest possible date," according to a statement on its website, www.amchamhanoi.com.

Trade between the US and Vietnam has grown sharply.

Vietnam's exports to the US surged to $6.5 billion last year, or 20% of total exports, from $800 million in 2001 when the Vietnam-US trade agreement came into effect.

Overall, the Trade Ministry in Hanoi has projected Vietnam's exports to the US this year will rise 18% to $38.08 billion over last year's total to help fuel a forecasted economic growth of 8%.

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