WASHINGTON—U.S. Commerce Secretary Carlos M. Gutierrez today released the following statement on the World Trade Organization's (WTO) approval of Vietnam's entry into the WTO, making possible Vietnam's membership by the end of 2006.
"Vietnam's entry into the WTO is a significant step forward and further opens the doors of opportunity for Vietnam and the United States," said Gutierrez. "American manufacturers and service providers will now have greater access to Vietnam's market while having their intellectual property rights better protected. I urge Congress to act quickly to approve Permanent Normal Trade Relations status for Vietnam so that American exporters can benefit from this important agreement. I congratulate the U.S. and Vietnamese negotiators for their work, especially USTR Susan Schwab." Background: The agreement is conditional on ratification by Vietnam's legislature.
The U.S. Congress must approve Permanent Normal Trade Relations (PNTR) for Vietnam before the WTO Agreement can apply between the United States and Vietnam. Vietnam will become the 150th member of the WTO 30 days after notifying the WTO of the acceptance of its Protocol of Accession.
Vietnam will reduce tariffs on over 94 percent of industrial and consumer goods, with tariffs ranging from 0 to 5 percent in several key sectors, including construction equipment, pharmaceuticals and aircraft. Vietnam's accession to the WTO will also remove significant non-tariff barriers.
U.S. service suppliers will enjoy improved market access in Vietnam in many significant sectors, including telecommunications, financial services, distribution, and energy services. Other provisions related to WTO accession will enhance export opportunities through government transparency and protection of intellectual property.
Since entry into force of the U.S.-Vietnam Bilateral Trade Agreement in December 2001, mutually beneficial, two-way trade between the United States and Vietnam has increased over five fold, from $1.5 billion to $7.8 billion at the end of 2005.
Source: U.S. Department of Commerce
