Washington Indochina Update # 9

July 2002

 

 

I.                   Trade

 

Catfish anti-dumping case tests US-Vietnam trade relations. Changing the legal name of Vietnamese basa and tra “catfish” proved to be not enough for US catfish producers, as imports continued to rise. In a June 28 petition to the quasi-governmental International Trade Commission (ITC), the industry association Catfish Farmers of America call for punitive tariffs to be placed on Vietnamese fish that they claim are being unfairly sold at below market value.

 

Vietnamese exporters deny the charges, saying that Vietnam is “not rich enough to practice dumping…We only sell in markets where we can make a profit.” Vietnamese trade minister Vu Khoan called the petition a plot to undermine fair trade.

 

The ITC will hold hearings on the complaint on July 19 and release its opinion to the Department of Commerce a month later. The Commission must determine if fish imports are in fact sold at less than fair prices and whether “an industry in the United States is materially injured” as a result. An adverse ruling could put the fast-growing trade between the US and Vietnam on ice. Meanwhile, US international trade policy is increasingly following a pattern of enforced “free trade” for others, but protection for domestic interests.

 

Proponents, opponents of trade with Laos exchange views.  Following the success of the “National Laotian-American Symposium on US-Laos Relations” in May, momentum has built for Congressional consideration of the bilateral trade agreement between the two countries. In a June 14 meeting, officials of the US Trade Representative office expressed enthusiasm for moving ahead with submission of the agreement, signed in 1997.

 

Opponents of US relations with Laos reacted with predictable dismay. A June 20 Washington Post story quoted lobbyist Philip Smith stating that normal trade relations were “premature” since Laos had not yet solved all of its human rights problems. Smith also lashed out at US Ambassador Douglas Hartwick, who responded that passage of the trade agreement had been on President Bush’s trade agenda long before his confirmation as ambassador.

 

In a June 28 letter to the Post, Andrew Wells-Dang noted “the emerging coalition of Lao and Hmong Americans, nongovernmental organizations, religious groups, businesses and US veterans that support positive change in US-Lao relations” and called opponents’ obstructionism old news. In a letter to American NGOs working in Laos, FRD Executive Director John McAuliff wrote, “We believe there are the votes in Congress for ratification of the agreement but that it is not a certainty given the low priority it is likely to have for many Representatives and Senators.” FRD is happy to answer questions, provide addresses and fax numbers, and arrange meetings in Congress on US-Laos relations; please contact washington@ffrd.org.

 

Vietnamese Deputy Prime Minister visits US.  Nguyen Manh Cam led a high-level delegation of 30 Vietnamese government and business leaders to promote trade with the US during a June 16-26 visit to Texas, Washington DC, Massachusetts, Pennsylvania and New York. The delegation met with more than 60 US businesses, encouraging more investment in Vietnam. In Washington, Cam met with National Security Advisor Condoleezza Rice, Deputy Secretary of State Richard Armitage, trade officials and members of Congress, as well as signed a memorandum of understanding on bilateral technical assistance.

 

According to the Vietnam News Agency, Cam also “told US officials and congressmen that the US should be responsible for helping Vietnam overcome the consequences of toxic chemicals sprayed by the US military during the war in Vietnam. The US was requested to implement humanitarian programs to assist victims exposed to toxic chemicals and deformed children whose parents had been exposed…and to decontaminate heavily affected areas.”

President Bush re-issues Jackson-Vanik waiver on Vietnam.  On June 3, President Bush announced (Presidential Determination No. 02-22) that continuing Vietnam’s Jackson-Vanik waiver would “substantially promote the objectives” of US law. The determination certifies that Vietnam remains in compliance with provisions regarding the freedom of emigration from countries with non-market economies, and hence eligible for annual renewal of normal trade relations (NTR).

 

As he has done each year since the waiver was first granted in 1998, Rep. Dana Rohrabacher (R-CA) introduced a resolution expressing Congressional disapproval (H.J.Res.101) on June 25. In recent years, Rohrabacher’s bill has been dismissed in the House by a 4-to-1 margin, and this time around is not expected to be different.

 

Due to the particularities of the 1974 trade law that includes Jackson-Vanik provisions, neither Cambodia (which received permanent NTR in 1996) nor Laos is bound by the act.

 

ILO reports “signs of improvement” in Cambodian garment industry.  The International Labor Organization released its “Third Synthesis Report on the Working Conditions Situation in Cambodia's Garment Sector” on July 1. In a review of conditions in 30 factories producing for foreign export, the ILO found no evidence of child labor, forced labor, or  sexual harassment, and improvements in payment of wages, overtime and freedom of association. Unlike in previous reports, specific factories are mentioned in the report along with steps they took (or did not take) to comply with ILO core labor standards and Cambodian labor laws.

 

The ILO-managed project is part of a monitoring system developed in conjunction with the 1999 US-Cambodian bilateral textile agreement. An advisory committee representing the Cambodian government, Garment Manufacturers' Association and trade unions endorsed the ILO report’s conclusions.

 

Additional views on textiles and labor in Vietnam.  A June Congressional Research Service report, “The US-Vietnam Textile Agreement Debate: Trade Patterns, Interests, and Labor Rights,” offers detailed analysis of Vietnam’s textile exports to the US and Congressional politics surrounding the proposed bilateral textile agreement. The author, Nicole Sayres, argues that “labor rights supporters point to improvements in Cambodia’s labor system as evidence of the success of the model. However, others have questioned the effectiveness of the incentive and the applicability of the model to Vietnam. Some observers contend that trade policy and labor issues should not be linked and, therefore, there should be no labor provision…The United States potentially has significant leverage on the issue because it could unilaterally impose quotas on the non-WTO country at any time.”

 

For a copy of the report or further information, contact the author at nsayres@crs.loc.gov.

 

The timing of the announcement is reminiscent of a similar Boeing sale to China during President Clinton’s 1996 visit to China. In spite of expressed support for the value of free trade, the first corporation to benefit directly from normal trading relations is, ironically, a near-monopoly.

 

II.        Human Rights

 

UN considers Vietnam’s report on ICCPR. A special United Nations committee is meeting in Geneva to evaluate the periodic reports of five state parties, including Vietnam, to the International Covenant on Civil and Political Rights (ICCPR). A Vietnamese representative will introduce the report, Vietnam’s first since 1990, and answer questions from the 18-member committee. International human rights organizations will also present their views to the committee.

 

Vietnam criticized over restrictions on media. Two press freedom organizations, the US-based Committee to Protect Journalists and the French Reporters Sans Frontieres, issued reports in early July alleging a crackdown on the media and free expression in Vietnam. CPJ cited detention of two dissident journalists, limitations on satellite and Internet use, and instructions to curtail reporting on government corruption; RSF gave a broader overview of the media in Vietnam, reserving its harshest criticism for Communist Party leader Nong Duc Manh.

 

Such frontal attacks are bound to go over badly in Vietnam, and both the government and various media organs responded with vociferous and defensive reactions. The website of the Voice of Vietnam, for instance, accused CPJ of “lending a hand to the hostile forces against Vietnam…the organization did not understand or chose to ignore the current development of [the] Vietnamese press.” VOV cited the 1999 press law passed by the National Assembly, high-quality investigative reporting on corruption, and nationwide screenings of National Assembly sessions as examples of improvements in press freedom. 

 

Neither the international critics nor Vietnamese respondents mentioned several salient facts about the media in Vietnam: first that in a highly literate society, what reporters write really matters; second that although all media is affiliated with a government or party organization in some way, there is a significant degree of difference among them; and third, ironically enough, more divergent opinions often appear in Vietnamese-language publications than in English or French. Certain topics are still off-limits, but if critics were actually to read or listen to Vietnamese media on a daily basis, they might be surprised.

 

International Criminal Court established.  Despite increasingly hard line opposition from the Bush Administration, the treaty creating an International Criminal Court entered into force on July 1. The Court’s authority is not retroactive, but as one commentator (former Clinton administration official Eric Schwartz) noted, its existence is “a living monument to the millions of victims of killings and torture over the past several decades, from Cambodia to Congo, who never obtained justice.” Cambodia became one of 76 countries to ratify the ICC treaty in April. Vietnam, which has not yet signed the treaty, has joined a chorus of international protests over US actions to “unsign” the treaty and restrict peacekeeping operations.

 

 

III.             Foreign Assistance

 

Cambodian Consultative Group pledges $600 million in aid.  During the June 17-21 Consultative Group meeting in Phnom Penh, international donors agreed to contribute $600 million over the next year, well over the $484 million the Cambodian government had asked for and more than half the country’s annual budget. According to the Voice of America, the US contribution is reported to be $45 million, including $3 million from the Centers for Disease Control and $2.5 million for demining operations.

 

Commerce Minister Cham Prasidh called the result “a reward for the government’s efforts in earlier reforms.” A World Bank statement praised Cambodia’s return to political and economic stability, while citing gaps in environmental protection and civil service reform.

 

A thorough 77-page NGO statement to the CG, covering issues ranging from legal reform to landmines, is available at www.ngoforum.org.kh/Woking_Group_Issues/Civilsociety/final_ngo_2002.htm. The NGO Statement is a collaborative effort among the Cooperation Committee for Cambodia (CCC), the NGO Forum on Cambodia, and the MEDiCAM association of NGOs working in health, together with contributions from twenty-two sectoral or issue-based  working groups.

Nam Theun II dam workshop held in Laos.  A Lao government-organized seminar, “Nam Theun II—Window to the Future,” was organized on July 3, with over 200 participants from embassies, international organizations, and NGOs. According to news reports, Finance Minister Soukan Mahalath said the government was committed to building the dam on schedule and to use income from electricity sales for poverty reduction. The Lao government is seeking a $100 million loan for the project, but World Bank official Jayasankar Shivakumar told the Bangkok Nation that the Bank was deferring a decision on a risk guarantee until the dam “receives wider support among the international donor community and from social and environmental groups.”

 

 

IV.              Diplomacy

 

Another chance for compromise on Khmer Rouge tribunal?  Following consultations with the UN in June, Cambodian Prime Minister Hun Sen announced on July 2 that his government was willing to amend a genocide law in order to reach a compromise with the UN. Hun Sen said that talks with the UN were “moving forward…we are working in a good atmosphere, and it is developing very well.”

 

Burghardt supports constructive cooperation with Vietnam.  US Ambassador to Vietnam Raymond Burghardt told a July 4 gathering in Hanoi that he was pleased with progress in US-Vietnamese relations, particularly on the economic front. “My goal over the next three years is to broaden and intensify the relationship and further normalize it across the board,” he added.

 

Burghardt joined five other US ambassadors to ASEAN nations in New York and Washington for a dialogue on economic cooperation in mid-June.

 

Laotian defense minister visits MIA recovery site.  Gen. Douangchay Phichit, Deputy Foreign Minister Phongsavath Boupha, and other Laotian officials visited a Joint Task Force-Full Accounting team in Savannakhet province on July 7. US and Lao search and recovery teams have worked on 89 sites since 1985, resulting in the identification of 160 MIAs out of a total of 560 Americans lost over Laos. US Ambassador to Laos Douglas Hartwick told Agence France Presse that the visit showed Lao government cooperation and “its humanitarian empathy with Americans who lost loved ones.”

“Free Vietnam” leader extradited to Thailand. Vo Van Duc, the Garden Grove, CA-based suspect in the June 2001 attempted bombing of the Vietnamese embassy in Bangkok, agreed in June to be extradited to Thailand in return for the dropping of US charges against him for conspiring to use a weapon of mass destruction. Vietnam’s Foreign Ministry has requested that Duc also be tried in Vietnam on terrorism charges. The arrest of Duc has cast more attention on the actions of the “Government of Free Vietnam” group, of which Duc is acknowledged as a leader, that seeks to overthrow the Vietnamese government.

 

 

 

The Washington Indochina Update is written on a monthly basis by Andrew Wells-Dang, Washington Representative of the Fund for Reconciliation and Development. Andrew can be reached at washington@ffrd.org. 

 

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