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Viewing cable 07HANOI233, AUSTR BARBARA WEISEL DISCUSSES MOVING TRADE RELATIONS

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Reference ID Created Released Classification Origin
07HANOI233 2007-02-05 10:15 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Hanoi
VZCZCXRO7670
RR RUEHHM
DE RUEHHI #0233/01 0361015
ZNR UUUUU ZZH
R 051015Z FEB 07
FM AMEMBASSY HANOI
TO RUEHC/SECSTATE WASHDC 4536
INFO RUEHHM/AMCONSUL HO CHI MINH 2472
UNCLAS SECTION 01 OF 02 HANOI 000233 
 
SIPDIS 
 
DEPT FOR EAP/MLS 
DEPT PASS TO USTR DAVID BISBEE 
COMMERCE FOR 4431/MAC/AP/OPB/VLC/HPPHO 
 
SENSITIVE 
SIPDIS 
 
TAGS: ETRD ECON KTEX USTR VM
SUBJECT: AUSTR BARBARA WEISEL DISCUSSES MOVING TRADE RELATIONS 
FORWARD WITH TRADE VM TU 
 
 
(U) THIS CABLE IS SENSITIVE BUT UNCLASSIFIED. NOT FOR INTERNET. 
 
REF:  A) STATE 9329, B) HANOI 197 
 
1. (SBU) Summary: In a February 1 meeting with Vice Minister of 
Trade Luong Van Tu, Assistant U.S. Trade Representative (AUSTR) 
Barbara Weisel expressed the United States' strong interest in 
building upon the current momentum in our bilateral trade relations. 
 VM Tu reacted positively to AUSTR Weisel's proposal to launch talks 
on a Trade and Investment Framework Agreement (TIFA), but reported 
he must share the draft text with other relevant ministries and 
agencies before formally commencing TIFA negotiations.  Weisel also 
noted that Vietnam has expressed interest in becoming a beneficiary 
of the U.S. Generalized System of Preferences (GSP) program and that 
the United States is prepared to work with Vietnam as it seeks to 
get through the complex qualification process for the program.  As a 
first step, USTR's GSP Executive Director will hold an informational 
roundtable on February 9 for GVN officials to better understand the 
program and its requirements.  The United States understands and 
will consider GVN's comments and concerns as it proceeds with the 
development of a proposed apparel mechanism.  These comments will be 
used to ensure that the process moves forward in a balanced and 
transparent manner, Weisel said.  Deputy USTR Karan Bhatia and the 
Department of Commerce (DOC) Assistant Secretary for Import 
Administration will soon travel to Vietnam to help clarify the 
monitoring program and address Vietnam's concerns.  End Summary. 
 
TIFA 
---- 
 
2. (SBU) AUSTR Barbara Weisel provided Vice Trade Minister Luong Van 
Tu with a draft TIFA agreement and proposed that the two sides 
formally launch negotiations with the aim of completing an agreement 
"very quickly."  She suggested that a TIFA would not only establish 
a formal dialogue to address outstanding trade issues, the Bilateral 
Trade Agreement (BTA), and World Trade Organization (WTO) 
implementation concerns, but would also provide a framework to 
negotiate any additional agreements that the two sides mutually 
agreed, such as a Bilateral Investment Treaty (BIT).  Weisel noted 
the goals of the 2002 Enterprise for ASEAN Initiative and that 
discussions and agreements reached under a TIFA have been used (as 
in the cases of Thailand and Malaysia) as building blocks toward a 
future Free Trade Agreement (FTA), when the relationship has reached 
an appropriate point. 
 
3. (SBU) The Vice Minister agreed on the need for a regular forum to 
discuss trade issues.  Claiming to echo Trade Minister Truong Dinh 
Tuyen's preparedness to consider TIFA talks, VM Tu said he must 
first share the draft agreement with other relevant agencies, and 
committed to "get back to the United States soon."  Weisel 
encouraged them to respond quickly so the two sides can build upon 
current momentum in our trade relations and initiate discussions 
over an appropriate workplan of issues to consider under a TIFA. 
Comment: Tu gave every indication that the Ministry of Trade (MOT) 
is ready to launch TIFA talks.  His unwillingness to commit formally 
seemed to stem from bureaucratic caution, perhaps in the interest of 
allowing Minister Tuyen to announce the talks formally at a later 
date.  End Comment. 
 
GSP 
--- 
 
4. (SBU) Citing recent steps Vietnam has taken to meet its long-held 
goal of qualifying for the GSP program, such as WTO accession and 
joining the International Labor Organization Convention on Forced 
Labor, VM Tu asked Weisel and USTR to consider approving Vietnam as 
a GSP program beneficiary.  While acknowledging Vietnam's recent 
progress, Weisel noted there are statutory requirements for 
participation in the GSP program, and the United States is 
interested in helping Vietnam understand the complex process before 
it formally requests consideration.  In Vietnam's case, protection 
of intellectual property rights and labor standards are two areas 
which will require additional work before Vietnam would be approved 
as a GSP beneficiary, Weisel said.  USTR's GSP program Executive 
Director Marideth Sandler will travel to Hanoi on February 9 to 
explain the GSP program to interested GVN officials.  Following this 
exchange, Vietnam would be in a better position to determine if it 
is ready to formally request GSP consideration at this time, AUSTR 
Weisel explained. 
 
Textile and Apparel Monitoring Mechanism 
---------------------------------------- 
 
5. (SBU) VM Tu raised Vietnam's continued concerns over the DOC's 
proposed development of an apparel and textile monitoring mechanism. 
 Speculation over the program has already negatively affected 
bilateral trade, Tu said, and asked the United States to consider 
removing the mechanism.  AUSTR Weisel explained that recent Federal 
 
HANOI 00000233  002 OF 002 
 
 
Register notices were published to ensure all interested parties 
could provide input into the mechanism's development.  She confirmed 
the United States received Vietnam's comments, which it will take 
into consideration, along with others, to ensure the program is 
developed in a balanced and transparent manner so that both sides 
can move beyond this issue.  Deputy USTR Karan Bhatia and DOC's 
Assistant Secretary for Import Administration will travel to Vietnam 
in the coming months to clarify the program and address Vietnam's 
concerns. 
 
6. (U) This cable has been cleared by USTR David Bisbee. 
 
MARINE