SUMMARY OF U.S. - VIETNAM BILATERAL TRADE AGREEMENT

Background: In 1996, the United States and Vietnam began negotiating a bilateral trade agreement (BTA). The BTA was signed on July 13, 2000 and the President transmitted the agreement to Congress for its approval on June 8, 2001. Should Congress approve the

agreement, the President would then be able to extend normal trade relations (NTR) on an annual basis subject to the Jackson-Vanik freedom of emigration requirements (similar to the process for China prior to its accession to the World Trade Organization). Overall, the BTA commits Vietnam to open its goods and services markets, implement significant economic reforms, expand rule of law, and broaden economic freedom.

The BTA has five major sections:

1) Market access for industrial and agricultural goods: Vietnam has agreed to sharply lower tariffs; phase out all non-tariff measures; and adhere to WTO standards in applying customs, import licensing, state trading, technical standards, and sanitary and phytosanitary measures. In addition, Vietnam has agreed to allow all Vietnamese firms, and over time U.S. firms, the right to import and export freely from its borders.

2) Intellectual property rights (IPR): Vietnam has committed to adopt WTO standards for IPR protection within 18 months, and to take further measures in several other areas (e.g., protection of satellite signals).

3) Market access for services: Vietnam has agreed to allow U.S. firms over time (typically three to five years) to enter its services market in the full range of service areas, including financial services (insurance and banking), telecommunications, distribution, audio visual, legal, accounting, engineering, computer and related services, market research, construction, educational, health and related services, and tourism.

4) Investment provisions: Vietnam has committed to protect U.S. investments from expropriation, to eliminate local content and export performance requirements, and to phase out its investment licensing regime in many sectors.

5) Transparency provisions: Vietnam has agreed to adopt a fully transparent regime by issuing draft laws, regulations and other rules for comment, ensuring that advance public notice is given for all such laws and regulations, and publishing these documents. Vietnam will also allow U.S. citizens the right to appeal rulings made with respect to all such relevant laws and regulations.