FOR IMMEDIATE RELEASE, Contact: (202) 225-3625
June 29, 2000
No. FC 29-A
Congressman Bill Archer (R-TX), Chairman of the Committee on Ways and Means, today announced that on Wednesday, June 28, 2000, the Committee ordered adversely reported, without amendment, H. J. Res. 99, disapproving the extension of the waiver authority contained in section 402(c) of the Trade Act of 1974 with respect to Vietnam, by a voice vote. The net effect of Committee action would be to continue the Jackson-Vanik waiver for Vietnam.
BACKGROUND ON H. J. RES. 99:
Vietnam's trade status is subject to the Jackson-Vanik amendment to Title IV of the Trade Act of 1974. This provision of law governs the extension of normal trade relations (NTR), as well as access to U.S. government credits, or credit or investment guarantees, to nonmarket economy countries ineligible for NTR treatment as of the enactment of the Trade Act. U.S. trade financing programs may be made available to U.S. firms in countries subject to the Trade Act only if the President certifies that the country is complying with the freedom of emigration provisions under the Trade Act or if the President waives this requirement. Specifically, the Trade Act authorizes the President to waive the requirements for full compliance with respect to a particular country if he determines that a waiver will substantially promote the freedom of emigration provisions and if he has received assurances that the emigration practices of the country will lead substantially to the achievement of those objectives. The extension of NTR tariff treatment requires, in addition to the freedom of emigration requirements, the conclusion and approval by Congress of a bilateral commercial agreement with the United States providing for reciprocal nondiscriminatory treatment.
In July 1999, the United States Trade Representative announced that an "agreement in principle" had been reached on the United States-Vietnam bilateral commercial agreement, but the agreement has not yet been formally signed and approved by Congress. Until that process is complete, the President's waiver for Vietnam gives U.S. exporters doing business in Vietnam access to U.S. Government credits, or credit or investment guarantees, such as those administered by the Overseas Private Investment Corporation, the Export-Import Bank, and the U.S. Department of Agriculture, provided Vietnam meets the relevant program criteria. The renewal procedure under the Trade Act requires the President to submit to Congress a recommendation for a 12-month extension no later than 30 days prior to the waiver's expiration (i.e., by not later than June 3). The President has issued a waiver every year since 1998. The waiver issued last year will expire July 2, 2000. On June 2, 2000, the President issued a 12-month renewal of the waiver for the period July 3, 2000 through July 2, 2001.
DESCRIPTION OF H. J. RES. 99:
H. J. Res. 99 was introduced by Representative Rohrabacher (R-CA) on June 6, 2000. H. J. Res. 99 states that Congress does not approve the extension of the authority contained in section 402(c) of the Trade Act of 1974 as recommended by the President to Congress on June 2, 2000, with respect to Vietnam. The effect of this resolution would be to withdraw the President's waiver of the Jackson-Vanik amendment for Vietnam.