New WTO rules might derail Vietnam-U.S. trade deal<\/p>\n
HANOI (Reuters): The possible adoption of tighter global
\ntrading rules over the next few years might scuttle a delayed
\ntrade pact between Vietnam and the United States if it remains
\nstalled for much longer, sources close to the deal said.<\/p>\n
They said unless Hanoi signed the pact soon, thus giving the
\nU.S. Congress time to approve it before America's political
\ncalendar becomes dominated by next year's presidential election,
\nthe whole issue could be sidelined until 2001.<\/p>\n
By that time tougher trading rules might have emerged -- if
\nnot on paper, at least in discussions -- from a new round of
\nglobal trade talks that begin at a World Trade Organization (WTO)
\nministerial meeting in Seattle on Nov. 30.<\/p>\n
That might prompt Washington to renegotiate key parts of the
\ntrade pact -- which Hanoi has hesitated to sign -- in accordance
\nwith any new WTO rules, the sources said.<\/p>\n
\"It can be assumed that at some point in time the document the
\nVietnamese have in front of them will be essentially null and
\nvoid and that there would not be a willingness on the part of the
\nUnited States to sign,\" one source told Reuters.<\/p>\n
\"The reality is the document is specially designed for
\nVietnam. It is not a strong WTO document.\"<\/p>\n
The longer communist Vietnam has no trade agreement with the
\nUnited States, the longer it remains one of the few nations
\ndenied preferential access to the giant U.S. market. The deal is
\nalso considered critical to Hanoi's desire to join the WTO.<\/p>\n
Any lengthy delay is also likely to worsen sentiment of
\nforeign businessmen, who see the U.S. trade agreement as a key to
\nopening Vietnam's economy and liberalizing its investment regime.<\/p>\n
WTO ministers meet in Seattle from Nov. 30 to Dec. 3, where
\nthey are expected to launch a fresh round of trade liberalization
\ntalks that may run for a few years.<\/p>\n
The focus is expected to be on agriculture, services, tariffs,
\ninvestment and labor and environmental standards. Vietnam has
\nbeen criticized on all fronts.<\/p>\n
\"Whatever they have negotiated on the trade pact could be
\novertaken by events (at the WTO),\" said Carlyle Thayer, a Vietnam
\nexpert at the Asia-Pacific Center for Security Studies in Hawaii.<\/p>\n
\"A hefty portion of the document would still probably be
\nintact but the most sensitive areas are going to be even more
\nsensitive,\" Thayer said by telephone.<\/p>\n
Washington has not commented on why Hanoi has balked at
\nsigning the pact, and has said it is unclear when the country's
\nleadership will be ready to put pen to paper.<\/p>\n
The former enemies in the Vietnam War reached agreement in
\nprinciple on the pact last July, and U.S. officials had expected
\nit would be co-signed and enacted by the year-end.<\/p>\n
But sources say the elite Communist Party politburo is still
\ndebating the merits of the agreement.<\/p>\n
U.S. officials have said the best-case scenario would be for
\nthe two sides to sign the pact before Congress adjourns this year
\nand have it heard and approved early next year.<\/p>\n
Congress is scheduled to adjourn on Oct. 29, although its
\nsession might extend into November. Analysts expect the deal to
\ntake several weeks to move through Congress.<\/p>",
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