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Strategies & Market Trends : Vietnam-the next Asian Tiger?

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From: Mannie12/9/2006 1:29:37 AM
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US House backs trade with Vietnam
The US House of Representatives has passed landmark legislation normalising trade relations with Vietnam.
The bill, which now needs to be backed by the Senate before becoming law, was defeated in November ahead of President George W Bush's first visit to Vietnam.

The deal also expanded trade relations with Haiti, and tweaked Washington's trade preferences with several states in Latin America and beyond.

The measures are the final tasks before the Republican-led Congress winds up.

A new-look Congress, with Democrat majorities in both the House and the Senate, will convene in the new year.

Senators sceptical

Congress' failure to pass the bill normalising trade relations with Hanoi was seen as an embarrassment for Mr Bush before he visited Vietnam for an economic summit in November.

"This legislation is about more than economics," Republican Rob Simmons, a Vietnam veteran, said during the debate.

"This legislation is about working together with Vietnam to heal the wounds of the war."

The trade package also allows the conflict-ridden Caribbean island nation of Haiti will be allowed to increase duty-free exports of clothing and textiles to the US, with some conditions.

Representatives said this should serve as a signal to other nations to trade with Haiti.

But there is opposition to the bill from some senators fearful that the textile deal with Haiti might cost American jobs.

The trade legislation also renews trade preferences with the Andean Community of Nations, namely Peru, Colombia, Bolivia and Ecuador.

But the deal, which is linked to fight against drugs, will be replaced by bilateral agreements from next year. Peru and Colombia have signed bilateral trade deals with the US, but Bolivia and Ecuador have not.

Correspondents say Democrats may take a tough line in the new year on ratifying pending bilateral deals with Colombia and Peru.
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