Landmark trade pact with U.S. has boosted relations: Vietnam<\/p>\n
Agence France-Presse, Hanoi<\/p>\n
Vietnam said Monday that its landmark trade pact with the
\nUnited States had boosted bilateral relations between the two
\nformer battlefield foes despite their squabble over catfish.<\/p>\n
\"The bilateral trade agreement (BTA) has contributed greatly
\nto the normalization of relations between Vietnam and the United
\nStates,\" Deputy Trade Minister Luong Van Tu said on the eve of
\nthe pact's first anniversary.<\/p>\n
\"The BTA is in the interests of the economic, trade and
\ninvestment relations between the two countries,\" he told
\nreporters.<\/p>\n
Billed as a precursor for Vietnam's entry into the World Trade
\nOrganization, the BTA was signed in July 2000 after six years of
\ntortuous negotiations, but only came into force on Dec. 10, 2001.<\/p>\n
For Vietnam, it triggered the immediate slashing of punitive
\nU.S. tariffs on Vietnamese exports, while U.S. investors were
\npromised a loosening of the communist-ruled country's tightly
\ncontrolled markets in a phased process.<\/p>\n
It also culminated the process of renewing formal links
\nbetween the two, which were severed after the United States'
\nhumiliating exit from the Vietnam War in 1973.<\/p>\n
Then president Bill Clinton initiated the healing process in
\n1994 when he lifted a trade embargo against the communist-ruled
\ncountry. The following year diplomatic relations were
\nestablished.<\/p>\n
Tu said the financial benefits of the trade deal had been
\nclearly felt.<\/p>\n
\"According to our statistics, direct trade over the last 10
\nmonths has increased by US$500-$600 million compared to the same
\nperiod last year,\" he told reporters.<\/p>\n
Vietnamese exports to the United States are estimated to have
\nincreased by $600-$800 million this year to $1.8 billion, while
\nU.S. exports to Vietnam are anticipated to have risen $100
\nmillion to $500 million, according to U.S. trade figures.<\/p>\n
However, Tu said a dumping action initiated in June by U.S.
\ncatfish farmers against their Vietnamese counterparts had marred
\nthe first anniversary of the historic pact.<\/p>\n
\"The consistent standpoint of the Vietnamese government is
\nthat this is an unreasonable case,\" Tu said. \"This goes against
\nall principles of fair trade.\"<\/p>\n
He denied that frozen catfish fillets were being dumped on the
\nU.S. market, saying production costs in Vietnam were far lower
\nthan in the United States.<\/p>\n
\"We hope the U.S. government will understand that they are not
\nbeing dumped and that the low prices are because of Vietnam's
\nadvantage in producing this kind of fish.\"<\/p>\n
The issue was exacerbated last month when the U.S. Commerce
\nDepartment, as part of its investigation into the charges,
\ndeclared Vietnam a \"non-market economy\".<\/p>\n
The decision could have an impact on the level of any punitive
\ntariffs levied against Vietnamese catfish imports, should the
\ndumping allegations be upheld.<\/p>\n
A preliminary determination into the anti-dumping
\ninvestigation is expected on Jan. 24, with the final conclusion
\ndue in April.<\/p>",
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