Vietnam PNTR Could Secure More Level Markets for Corn, Coproducts (11-14-06)

Although legislation authorizing the granting of permanent normal trade relations (PNTR) with Vietnam was passed by the House of Representatives yesterday evening in a vote of 228 to 161, the legislation did not secure the two-thirds majority required to suspend House rules and pass without debate.

National Corn Growers Association (NCGA) notes once the legislation is taken up for consideration and passed, it would be an important step in securing a more leveled market for U.S. corn and its coproducts.

NCGA noted they are hopeful that time can be found for House and Senate debate on the floor before Congress adjourns.

The bilateral market access package the U.S. negotiated with Vietnam will ensure that duties will be reduced to 15 percent or less for approximately three-fourths of U.S. agricultural exports to Vietnam. According to NCGA’s Joint Trade A-Team Chairman Bob Bowman, corn growers will benefit from the lower tariffs in the form of beef and pork exports. All of Vietnam’s concessions are to be permanent, just as the U.S. grant of normal trade relations to Vietnam will be permanent.

“Although the legislation was dealt a temporary setback, we are optimistic that the House will again bring this legislation to the floor to finalize passage,” said Bowman. “This legislation will ensure increased agricultural exports to Vietnam. Trade agreements like this will place U.S. producers at a more competitive level in the global marketplace and show that the U.S. is serious about securing more beneficial economic partnerships internationally.”

Vietnam’s accession to the World Trade Organization (WTO) was announced Nov. 7, 2006. The U.S. welcomed the decision but took the non-application clause, which bars the U.S. from holding Vietnam to WTO rules. The U.S. had to take the non-application clause because Congress had not yet voted on Vietnam PNTR, which is also known as permanent most-favored nation (MFN) status.