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Viewing cable 08HANOI312, FOLLOWING UP WITH VIETNAM ON TAFT AND ENVIRONMENTAL GOODS

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Reference ID Created Released Classification Origin
08HANOI312 2008-03-17 09:49 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Hanoi
VZCZCXRO6636
PP RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHHI #0312/01 0770949
ZNR UUUUU ZZH
P 170949Z MAR 08
FM AMEMBASSY HANOI
TO RUEHC/SECSTATE WASHDC PRIORITY 7426
INFO RUEHHM/AMCONSUL HO CHI MINH 4460
RUCNASE/ASEAN MEMBER COLLECTIVE
RUEHAM/AMEMBASSY AMMAN 0034
RUEHAK/AMEMBASSY ANKARA 0069
RUEHBK/AMEMBASSY BANGKOK 6256
RUEHBJ/AMEMBASSY BEIJING 7087
RUEHSW/AMEMBASSY BERN 0066
RUEHEG/AMEMBASSY CAIRO 0017
RUEHBY/AMEMBASSY CANBERRA 2368
RUEHLM/AMEMBASSY COLOMBO 0052
RUEHKA/AMEMBASSY DHAKA 0066
RUEHGT/AMEMBASSY GUATEMALA 0021
RUEHIL/AMEMBASSY ISLAMABAD 0100
RUEHJA/AMEMBASSY JAKARTA 0691
RUEHMU/AMEMBASSY MANAGUA 0002
RUEHML/AMEMBASSY MANILA 2579
RUEHME/AMEMBASSY MEXICO 0045
RUEHNE/AMEMBASSY NEW DELHI 0402
RUEHNY/AMEMBASSY OSLO 0063
RUEHOT/AMEMBASSY OTTAWA 0520
RUEHPF/AMEMBASSY PHNOM PENH 3739
RUEHPL/AMEMBASSY PORT LOUIS 0002
RUEHRB/AMEMBASSY RABAT 0008
RUEHSJ/AMEMBASSY SAN JOSE 0025
RUEHSN/AMEMBASSY SAN SALVADOR 0007
RUEHDG/AMEMBASSY SANTO DOMINGO 0007
RUEHTG/AMEMBASSY TEGUCIGALPA 0006
RUEHTU/AMEMBASSY TUNIS 0027
RUEHWL/AMEMBASSY WELLINGTON 0285
RUEHGV/USMISSION GENEVA 1235
RUEHBS/USEU BRUSSELS
UNCLAS SECTION 01 OF 02 HANOI 000312 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/MLS, EBB/TPP/MTA/RHEE AND SCHEIBE 
USTR FOR NORTON, WEISS, BISBEE 
COMMERCE FOR BRZYTWA 
 
E.O. 12958: N/A 
TAGS: ETRD WTRO ECON VM
SUBJECT:  FOLLOWING UP WITH VIETNAM ON TAFT AND ENVIRONMENTAL GOODS 
PROPOSALS 
 
REF: A) HANOI 155 ("Demarche to Vietnam on TAFT Goods Proposal); 
B) STATE 12905 ("WTO Demarche Request") 
 
HANOI 00000312  001.2 OF 002 
 
 
1. (SBU) On March 13, acting Econ Counselor followed up with the 
Government of Vietnam (GVN) on the proposal on labeling for textile, 
apparel, footwear, and travel (TAFT) goods, in a joint demarche with 
his EU counterpart in Hanoi.  The GVN said that it "warmly welcomed" 
the proposal and "shares it objectives," but that there was no GVN 
consensus to co-sponsor it. 
 
2. (SBU) The Deputy Director General of the Multilateral Trade 
Office of the Ministry of Industry and Trade (MOIT), Luong Hoang 
Thai, said that the main opposition to having Vietnam co-sponsor the 
proposal were "the TBT people" on his side, who are uncomfortable 
with setting a precedent for "changing" the TBT through an 
understanding like the TAFT proposal.  Although he declined to name 
the "TBT people" in question, at one point he seemed to point to the 
Chief Negotiator of the Vietnamese side as one who remained 
unconvinced. 
 
3. (SBU) Thai, who was accompanied by Nguyen Hong Duong, Deputy 
Director of the MOIT's Americas Department (and to whom we delivered 
our first demarche, REF A), acknowledged that the GATT example (REF 
B) made a good case for overcoming the objections on setting a 
precedent.  He noted that outspoken support from other development 
countries, like China, and the Vietnamese garment industry would 
also make it easier for him to make the case.  On the latter, he 
suggested exchanges with U.S. experts who could explain the issue 
better to the local garment industry. 
 
TARIFF BARRIERS ON ENVIRONMENTAL GOODS AND SERVICES 
--------------------------------------------- --- 
 
4. (SBU) Embassy's Science and Technology Officer also joined 
Embassy Econ Counselor and the EU Trade Representative on the 
proposal to remove tariff barriers on environmental goods and 
services under paragraph 31 (III) of the Doha Ministerial 
Declaration.  The Vietnamese noted a general hesitancy to consider 
additional tariff cuts as the nation continued to familiarize itself 
with its WTO obligations and concerns that tariff cuts were not the 
proper means to address environmental issues.  They were still 
discussing this proposal internally, especially regarding the 
technical issues and policy implications, and did not yet have a 
response.  The EU rep said that they were willing to consider 
offering technical assistance to Vietnam to better grapple with 
these issues, which the Vietnamese took into consideration. 
 
CLARIFYING COMMENTS ON EXPORT TAXES 
----------------------------------- 
 
5. (SBU) The EU Trade Representative also raised his concerns at 
comments attributed to the Vietnamese delegation in Geneva to the 
effect that Vietnam not only was against phasing out export taxes 
 
HANOI 00000312  002.2 OF 002 
 
 
but also against notifying them.  The EU rep said that this went 
contrary to the understanding on excluding recently-acceded members 
(VRAM) outside the obligations, and that if the comments reflected 
the Vietnamese position, "then we may have to revisit this 
understanding."  Thai and Duong both attributed the comments to a 
"misunderstanding" and said that they did not reflect the Vietnamese 
position, which does not oppose notification or an eventual phase 
out of export taxes. 
 
MICHALAK 
 
 
 
3