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July 2, 1999
No. FC 9-A
Congressman Bill Archer (R-TX), Chairman of the Committee on Ways and Means, today announced that on Thursday, July 1, 1999, the Committee ordered adversely reported, without amendment, H. J. Res. 58, a joint resolution 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; and H. J. Res. 57, a joint resolution disapproving the extension of normal trade relations (NTR) treatment to the products of the People's Republic of China, by a voice vote.
BACKGROUND ON H. J. RES. 58:
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 NTR, including normal tariff treatment, 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. A country subject to the provision may gain NTR treatment and coverage by U.S. trade financing programs only by complying with the freedom of emigration provisions under the Act. The extension of NTR tariff treatment also requires the conclusion and approval by Congress of a bilateral commercial agreement with the United States providing for reciprocal nondiscriminatory treatment. The 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.
Since the early 1990s, the United States has taken gradual steps to improve relations with Vietnam. In February 1994, President Clinton lifted the trade embargo on Vietnam in recognition of the progress made in POW/MIA accounting and the successful implementation of the Paris Peace Accords. The United States opened a Liaison Office in Hanoi later that year. On July 11, 1995, President Clinton announced the establishment of diplomatic relations, which was followed by the appointment of former Congressman Douglas "Pete" Peterson as U.S. Ambassador to Vietnam. In 1997, the Office of the United States Trade Representative began negotiations, which are still ongoing, toward the conclusion of a bilateral commercial agreement with Vietnam.
Because Vietnam has not yet concluded a bilateral commercial agreement with the United States, it is ineligible to receive NTR tariff treatment. However, if the President determines that a Jackson-Vanik waiver would substantially promote the freedom of emigration objectives under the Trade Act of 1974, U.S. exporters to Vietnam are given access to U.S. Government credits, or credit or investment guarantees, such as those provided by the Overseas Private Investment Corporation, the Export-Import Bank, and the U.S. Department of Agriculture, provided that Vietnam meets the relevant program criteria.
On March 9, 1998, the President first determined that a Jackson-Vanik waiver for Vietnam would substantially promote the freedom of emigration objectives under the Trade Act of 1974. On April 7, 1998, the President issued Executive Order 13079, under which the waiver entered into force. 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. On June 3, 1998, the President renewed Vietnam's waiver for the next 12-month period. On
June 3, 1999, the President again issued a 12-month waiver. The waiver authority continues in effect unless disapproved by Congress within 60 calendar days after the expiration of the existing waiver. The Committee on Ways and Means is subject to a discharge motion if it does not report a resolution of disapproval within 30 calendar days of its introduction. The resolution, which is highly privileged on the floor, may not be amended except to change country names.
DESCRIPTION OF H. J. RES. 58:
H. J. Res. 58 was introduced by Representative Rohrabacher (R-CA) on June 9, 1999. H. J. Res. 58 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 3, 1999, with respect to Vietnam. The effect of this resolution would be to withdraw the President's waiver of the Jackson-Vanik amendment for Vietnam.
BACKGROUND ON H. J. RES. 57:
The Jackson-Vanik amendment, described above with respect to Committee action on the waiver for Vietnam, governs the extension of NTR to the People's Republic of China. China signed a commercial trade agreement with the United States, and NTR was first granted to China on February 1, 1980. China's NTR status has been extended annually since that time. The President announced on June 3, 1999, his intention to waive the freedom of emigration requirements for another year, beginning on July 3, 1999.
DESCRIPTION OF H. J. RES. 57:
H. J. Res. 57 was introduced by Representative Rohrabacher (R-CA) on June 7, 1999. H. J. Res. 57 states that Congress does not approve extension of the waiver authority contained in section 402 (c) of the Trade Act of 1974, as recommended to the Congress by the President on June 3, 1999, with respect to the People's Republic of China. The effect of this resolution would be to withdraw NTR to the products of China.