Opening Statement of the Hon. Sander M. Levin, a Representative in Congress from the State of Michigan

Hearing on Renewal of the President's Waiver for Vietnam
from the Jackson-Vanik Freedom of Emigration Requirements

July 18, 2002

Thank you, Mr. Chairman. I am glad we are here today to evaluate the President's decision to waive applicability of the so-called Jackson-Vanik amendment to Vietnam.

Yesterday I met with the Vietnamese Ambassador to the United States, who emphasized the importance of the Jackson-Vanik waiver to his country.

The waiver that is the subject of the resolution at issue today is a continuation in the process of engaging with Vietnam. Expanding upon prior year's Jackson-Vanik waivers, the waiver this year will not only continue the availability of export-related financing from OPIC, Ex-Im Bank, and the Department of Agriculture for Vietnam, but will also continue NTR status for Vietnam.

Although the Jackson-Vanik criteria are focused on emigration issues, the annual review process is an opportunity to examine various aspects of our relationship with Vietnam, including emigration, human rights, MIA recovery efforts, and trade issues, including labor market standards.

I am glad that Mr. LaFleur from the State Department will be addressing emigration and human rights issues in his comments, but I am a bit surprised that at this hearing today we do not have any witnesses from the human rights community.

Our relationship with Vietnam is a complicated one, still very much impacted by the war that left a deep and lasting impact on both nations. Despite years of bitter relationships and conflict, U.S. relations with Vietnam have improved over the last decade.

In 1994, we lifted the comprehensive trade embargo that had been in place for nearly 20 years.

In 1995, we opened a U.S. embassy in Hanoi.

In 1998, President Clinton first waived the Jackson-Vanik prohibitions, and every year since, this body has supported his decision with decisive margins.

Just last year, Congress approved the U.S.-Vietnam bilateral trade agreement, granting Vietnam normal trade relations.

Each of these steps was a long time in evolving. Each responded to positive developments in Vietnam. Notably, the government of Vietnam has continued to cooperate in helping to locate U.S. servicemen and women missing in Vietnam. Just last year, nine Vietnamese died helping in the search for U.S. MIAs.

Further, there has been improvement by the Government of Vietnam in emigration and increased cooperation with U.S. refugee programs.

Indicating the seriousness with which it has taken its obligations, Vietnam has made progress in implementing the bilateral trade agreement that entered into force last year. I look forward to hearing testimony from the witnesses detailing some of Vietnam's implementation efforts.

Unfortunately, the Government of Vietnam has not made a similar commitment to improving its human rights record. The most recent State Department human rights report indicates that Vietnam's already poor human rights record has deteriorated. This is very troubling and I hope that some of our witnesses will discuss that issue and discuss how they think it should play into our analysis of this and future Jackson-Vanik waivers.

Additionally, Vietnam still needs to make major progress in respecting and enforcing core, internationally-recognized labor rights. The Clinton Administration signed a Memorandum of Understanding regarding labor rights with Vietnam, and programs have been operating under this MOU for the past few years.

Nevertheless, Vietnam continues to deny its workers the fundamental right to associate freely. The recent State Department Human Rights Report contains some good news on labor rights, but also indicates that child labor and prison labor continue to be widespread in Vietnam and that Vietnam has not adequately enforced its own laws regarding minimum wages and workplace safety.

I stated last year when we approved the bilateral trade agreement with Vietnam that I would watch closely the eventual negotiations of the textiles and apparel agreement, and that any such agreement must include labor provisions similar to the positive incentives included in the Cambodia textiles and apparel agreement.

I understand that negotiations on a textiles and apparel agreement have begun, but there still has not been a firm commitment by the Administration to include positive incentive labor provisions. Although the issue is not yet ripe for this year's vote, I want to convey to the Administration and the Government of Vietnam that if the labor issue is ignored in the textile and apparel agreement, it will have repercussions for future Jackson-Vanik NTR waivers.

In the mean time, there is still much to be done to fully normalize our relationship with Vietnam. The resolution at issue would be a step back today. It would hurt our relations with Vietnam and it would hurt important reform efforts there. We must preserve the forward momentum that has developed over the past several years and continue working together to build a meaningful and enduring relationship.

I look forward to hearing the testimony of the witnesses today.