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Viewing cable 06HANOI2013, VIETNAMESE RESPONSE TO DEMARCHE RE U.S.-ASEAN TRADE AND

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Reference ID Created Released Classification Origin
06HANOI2013 2006-08-09 10:09 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Hanoi
VZCZCXRO5023
OO RUEHCHI RUEHDT RUEHHM
DE RUEHHI #2013 2211009
ZNR UUUUU ZZH
O 091009Z AUG 06
FM AMEMBASSY HANOI
TO RUEHC/SECSTATE WASHDC IMMEDIATE 2997
INFO RUEHHM/AMCONSUL HO CHI MINH CITY 1618
RUEHZS/ASEAN REGIONAL FORUM COLLECTIVE
UNCLAS HANOI 002013 
 
SIPDIS 
 
STATE FOR EAP/MLS AND EB/TPP/BTA/ANA 
STATE PASS USTR FOR B.WEISEL, J.JENSEN and D.KATZ 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON ETRD VM
SUBJECT: VIETNAMESE RESPONSE TO DEMARCHE RE U.S.-ASEAN TRADE AND 
INVESTMENT FRAMEWORK ARRANGEMENT (TIFA) 
 
 
SENSITIVE - DO NOT POST ON INTERNET 
 
REF: STATE 126674 
 
1. (SBU) Summary:  Post delivered reftel demarche to the Ministry of 
Trade (MOT) by fax on August 4 and followed up with a meeting on 
August 7 to obtain a preliminary response.  The head of the ASEAN 
office welcomed the USG proposal, but expressed some concerns about 
the language on labor and on providing for an ongoing mechanism for 
cooperation in Section Five.  He also emphasized that Vietnam wanted 
the TIFA to be a step towards an eventual FTA and asked how making 
the TIFA non-binding would affect that process.  The MOT must still 
vet the U.S. proposal with relevant Ministries and gain the Prime 
Minister's approval before giving any definitive response.  End 
summary. 
 
2. (SBU) Econoff delivered the demarche and draft text of the 
proposed TIFA to the Multilateral Department at the Ministry of 
Trade on August 4 and followed up with a meeting on August 7 with 
Bui Huy Son, recently promoted to Director General for ASEAN 
Economic Integration.  Mr. Son expressed appreciation for the U.S. 
proposal, saying that it was very timely since the MOT would need to 
clear the U.S. proposal with all relevant Ministries (Ministry of 
Justice, Ministry of Foreign Affairs, Ministry of Labor, Invalids 
and Social Affairs, and Ministry of Science and Technology) before 
seeking approval from the Prime Minister.  He noted that timing was 
tight to obtain all necessary clearances before the Ministerial 
August 24-25 and indicated that it would be helpful for Econoff to 
contact other Ministries directly.  (Note: Post is sending copies of 
the demarche to the other Ministries and will follow up as 
appropriate.  End note.) 
 
3.  (SBU) Although welcoming the new U.S. draft, Son said that his 
preliminary analysis raised some concerns: 
 
-- Change to non-binding status:  Son said that Vietnam had 
supported the original TIFA because Vietnam is looking forward to an 
eventual Free Trade Agreement (FTA) with the United States and had 
understood that U.S. policy requires that a TIFA precede an FTA.  He 
asked whether a non-binding TIFA would satisfy the U.S. requirement 
or whether some further step would be required before moving on to 
an FTA.  Were there cases of other countries moving from a 
non-binding TIFA (or no TIFA) to an FTA? 
 
-- Labor language:  Son pointed out that neither Vietnam nor Laos 
are members of the WTO, however, he conceded that Vietnam could 
accept the reference to WTO declarations with the expectation that 
it would soon become a member.  He said that the phrase 
"internationally recognized standards" was not clear and suggested 
dropping it.  He also suggested that the phrase "providing adequate 
and effective protection" included the concept of enforcement and so 
the phrase "and enforcement" should be dropped. 
 
-- Section Five, paragraph three:  Son explained that "existing 
mechanisms" and "working groups" in paragraph two did not cover an 
ongoing mechanism for cooperation with the United States, so if 
paragraph three is to be dropped, paragraph two should be rephrased 
to provide for such a mechanism. 
 
4. (SBU) Son said that he was just providing a preliminary response 
and the Ministry of Trade would have to coordinate with other 
Ministries and consult with other ASEAN countries.  He asked if the 
United States had a tentative agenda for coordinating agreement on 
the text at the Kuala Lumpur Ministerial. 
 
MARINE