Identifier
Created
Classification
Origin
02HANOI102
2002-01-15 07:37:00
UNCLASSIFIED
Embassy Hanoi
Cable title:  

VIETNAM: SRILA POLASKI BRIEFS GVN OFFICIALS ON

Tags:  ELAB ETRD ECON PHUM VM CB LABOR 
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150737Z Jan 02

 2002HANOI00102 - UNCLASSIFIED
 
 
 
 UNCLASSIFIED PTQ2433

PAGE 01 HANOI 00102 01 OF 02 150748Z 
ACTION DRL-02 

INFO LOG-00 AID-00 CEA-01 CIAE-00 CTME-00 DODE-00 ITCE-00 
 DOTE-00 WHA-00 SRPP-00 EAP-00 EB-00 EXME-00 E-00 
 FAAE-00 FBIE-00 UTED-00 VC-00 FRB-00 H-01 TEDE-00 
 INR-00 IO-00 ITC-01 LAB-01 L-00 VCE-00 MOFM-05 
 MOF-01 AC-01 NSAE-00 NSCE-00 OES-01 OIC-02 OMB-01 
 OPIC-01 PC-01 PRS-00 ACE-00 P-00 SP-00 IRM-00 
 SSO-00 SS-00 STR-00 TEST-00 TRSE-00 USIE-00 PRM-00 
 G-00 NFAT-00 SAS-00 SWCI-00 /019W
 ------------------57C4EA 150748Z /38 
FM AMEMBASSY HANOI
TO SECSTATE WASHDC 5247
INFO DEPTLABOR WASHDC
USDOC WASHDC
AMEMBASSY PHNOM PENH 
AMCONSUL HO CHI MINH CITY
UNCLAS SECTION 01 OF 02 HANOI 000102 

SIPDIS

STATE FOR DRL DAS JSCARPENTER, DRL/IL GWHITE
STATE ALSO FOR EAP/BCLTV AND EB/TPP BBOYNTON
USTR FFOR CMILLER, RALPH IVES AND ELENA BRYANT
DEPTLABOR FOR ILAB BETSY WHITE
USDOC FOR 4431/MAC/IEP/OKSA/HPPHO
EMBASSY PHNOM PENH FOR BRUCE LEVINE

E.O. 12958:N/A
UNCLASSIFIED

PAGE 02 HANOI 00102 01 OF 02 150748Z
TAGS: ELAB ETRD ECON PHUM VM CB LABOR
SUBJECT: VIETNAM: SRILA POLASKI BRIEFS GVN OFFICIALS ON
LABOR PROVISIONS IN THE US-CAMBODIA TEXTILE AGREEMENT

REF: A) HANOI 80; B) HANOI 60

UNCLAS SECTION 01 OF 02 HANOI 000102

SIPDIS

STATE FOR DRL DAS JSCARPENTER, DRL/IL GWHITE
STATE ALSO FOR EAP/BCLTV AND EB/TPP BBOYNTON
USTR FFOR CMILLER, RALPH IVES AND ELENA BRYANT
DEPTLABOR FOR ILAB BETSY WHITE
USDOC FOR 4431/MAC/IEP/OKSA/HPPHO
EMBASSY PHNOM PENH FOR BRUCE LEVINE

E.O. 12958:N/A
UNCLASSIFIED

PAGE 02 HANOI 00102 01 OF 02 150748Z
TAGS: ELAB ETRD ECON PHUM VM CB LABOR
SUBJECT: VIETNAM: SRILA POLASKI BRIEFS GVN OFFICIALS ON
LABOR PROVISIONS IN THE US-CAMBODIA TEXTILE AGREEMENT

REF: A) HANOI 80; B) HANOI 60


1. SUMMARY: STATE DEPARTMENT SPECIAL REPRESENTATIVE FOR
INTERNATIONAL LABOR AFFAIRS (SRILA) SANDRA POLASKI BRIEFED
VIETNAMESE TRADE AND LABOR OFFICIALS AND INDUSTRY
REPRESENTATIVES ON THE LABOR PROVISIONS OF THE U.S.-CAMBODIA
TEXTILE AGREEMENT. BECAUSE NEITHER THE U.S. NOR VIETNAM HAS
YET MADE AN INTERNAL DECISION ABOUT THE CONTENTS OF A
TEXTILES AGREEMENT OR A NEGOTIATING TIMETABLE, MS. POLASKI
PROVIDED GENERAL INFORMATION ON THE APPROACH THE U.S. USED
WITH CAMBODIA AND THE SUCCESSFUL RESULTS, IN THE U.S. VIEW,
FOR BOTH PARTIES. WHILE THE BRIEFING WAS WELL RECEIVED,
VICE MINISTER OF TRADE LUONG VAN TU MADE IT CLEAR THAT THE
GVN CONTINUES TO HAVE DOUBTS ABOUT THE NECESSITY OF A
TEXTILES AGREEMENT. HOWEVER, IN A SUBSEQUENT MEETING WITH
THE AMBASSADOR, THE MINISTER OF TRADE INDICATED THE GVN IS
PREPARED TO "EXCHANGE VIEWS." IT IS IMPORTANT TO NOTE THAT
GVN AGREEMENT TO THE BRIEFING IS ITSELF A SUBTLE CHANGE FROM
ITS PREVIOUS RELUCTANCE TO DISCUSS POTENTIAL CONNECTIONS
BETWEEN TRADE AND LABOR ISSUES, INDICATING THAT WHILE THE
GVN DOES NOT AGREE, IT IS IN A LISTENING MODE. END SUMMARY


2. DURING HER VISIT TO HANOI (REF A),DECEMBER 19-22, SRILA
SANDRA POLASKI BRIEFED VICE MINISTER OF TRADE LUONG VAN TU
ON THE U.S. EXPERIENCE WITH THE LABOR PROVISIONS OF THE U.S.-
CAMBODIA TEXTILE AGREEMENT (THE TEXTILE AGREEMENT). VICE
MINISTER TU WAS JOINED BY MOT OFFICIALS FROM THE NORTH
UNCLASSIFIED

PAGE 03 HANOI 00102 01 OF 02 150748Z
AMERICA OFFICE AND THE EXPORT-IMPORT MANAGEMENT DEPARTMENT,
NGUYEN MANH CUONG, DEPUTY DIRECTOR OF INTERNATIONAL
RELATIONS DEPARTMENT AT THE MINISTRY OF LABOR, SOCIAL
AFFAIRS AND INVALIDS (MOLISA) AND MR. NGUYEN XUAN HAO,
DEPUTY GENERAL SECRETARY OF THE VIETNAM TEXTILE AND APPAREL
ASSOCIATION (VITAS). MS. POLASKI WAS JOINED BY ECONOMIC

COUNSELOR CLAIRE PIERANGELO AND LABOR OFFICER LINDA SPECHT
(NOTE TAKER).


3. THE BRIEFING WAS CONDUCTED WITH THE UNDERSTANDING THAT
IT DID NOT INDICATE A DECISION ON THE PART OF EITHER VIETNAM
OR THE UNITED STATES ON WHETHER TO NEGOTIATE A TEXTILE
AGREEMENT OR WHAT SUCH AN AGREEMENT WOULD CONTAIN. HAVING
ESTABLISHED THAT UNDERSTANDING, MS. POLASKI FRAMED HER
BRIEFING IN TERMS OF THE LOGIC AND POTENTIAL BENEFITS TO
VIETNAM OF INCLUDING LABOR PROVISIONS IN A TEXTILE
AGREEMENT. MS. POLASKI INFORMED HER AUDIENCE THAT, UNDER
ITS TEXTILE AGREEMENT WITH THE U.S., CAMBODIA RECEIVES QUOTA
BONUSES LINKED TO SUCCESSFUL ENFORCEMENT OF ITS LABOR LAW,
APPLICATION OF CORE INTERNATIONAL LABOR STANDARDS, AND
IMPROVEMENTS IN WORKING CONDITIONS. SHE DID NOT DISCUSS
SPECIFIC PROVISIONS OF THAT AGREEMENT.


4. MS. POLASKI REPORTED THAT THE APPROACH ADOPTED IN THE
CAMBODIA AGREEMENT PRODUCED A "WIN-WIN" SITUATION FOR THE
PARTIES IN WHICH TRADE POLICY REINFORCES GOOD DOMESTIC LABOR
POLICY, IN TURN PROVIDING TANGIBLE BENEFITS TO CAMBODIA AND
CAMBODIAN WORKERS. FIRST, AS A RESULT OF THE TEXTILE
AGREEMENT AND QUOTA BONUSES, CAMBODIA'S FIVE-YEAR OLD
TEXTILE AND APPAREL SECTOR HAD GROWN RAPIDLY AND NOW STANDS
AT MORE THAN USD 1 BILLION IN TEXTILE AND APPAREL EXPORTS
UNCLASSIFIED

PAGE 04 HANOI 00102 01 OF 02 150748Z
ANNUALLY. SHE NOTED THAT CAMBODIA REPORTS IT IS THE FIRST
LEAST-DEVELOPED COUNTRY TO REACH THAT MARK. AND WORKERS
HAVE BENEFITED: THE SECTOR NOW PROVIDES ROUGHLY 200,000
JOBS, WELL-PAID BY LOCAL STANDARDS. BUT PERHAPS MORE
IMPORTANT, THE AGREEMENT HAS PROMOTED QUALITY GROWTH IN THIS
KEY SECTOR. THE AGREEMENT PROVIDES FOR MONITORING OF
FACTORIES BY THE INTERNATIONAL LABOR ORGANIZATION, FUNDED BY
THE USG, THE CAMBODIAN GOVERNMENT AND THE CAMBODIAN APPAREL
INDUSTRY. ACCORDING TO MS. POLASKI, THE EXISTENCE OF A
CREDIBLE, NEUTRAL REVIEW OF LABOR PRACTICES IN THE APPAREL
SECTOR HAS ATTRACTED BUYERS AND RETAILERS FROM THE U.S. WHO
HAVE INVESTED HEAVILY IN THEIR REPUTATIONS AND BRANDS. SUCH
BUYERS ARE WILLING TO PAY A PREMIUM FOR GOOD QUALITY
MERCHANDISE AND QUALITY LABOR RELATIONS, AND CONSEQUENTLY,
OFFER BETTER CONTRACT TERMS THAN OTHER BUYERS. SHE ALSO
NOTED THAT THE AGREEMENT PROMOTED ECONOMIC AND POLITICAL
STABILITY BY IMPROVING WORKING CONDITIONS AND LABOR
RELATIONS AND PROVIDING ALTERNATIVES TO STRIKES TO RESOLVE
LABOR DISPUTES.


5. VM TU EXPRESSED APPRECIATION FOR THE INFORMATION MS.
POLASKI PROVIDED. HE ARGUED, HOWEVER, THAT, AS A LEADER OF
THE INTERNATIONAL TRADING SYSTEM, THE UNITED STATES'
PRIORITY SHOULD BE ON LOWERING BARRIERS TO TRADE. AND ON
TEXTILES, ANY DECISION BY THE U.S. TO IMPOSE QUOTAS WOULD
RUN COUNTER TO INTERNATIONAL TRENDS. ACCORDING TO VM TU,

UNCLASSIFIED

UNCLASSIFIED PTQ2434

PAGE 01 HANOI 00102 02 OF 02 150748Z
ACTION DRL-02

INFO LOG-00 AID-00 CEA-01 CIAE-00 CTME-00 DODE-00 ITCE-00
DOTE-00 WHA-00 SRPP-00 EAP-00 EB-00 EXME-00 E-00
FAAE-00 FBIE-00 UTED-00 VC-00 FRB-00 H-01 TEDE-00
INR-00 IO-00 ITC-01 LAB-01 L-00 VCE-00 MOFM-05
MOF-01 AC-01 NSAE-00 NSCE-00 OES-01 OIC-02 OMB-01
OPIC-01 PC-01 PRS-00 ACE-00 P-00 SP-00 SSO-00
SS-00 STR-00 TEST-00 TRSE-00 USIE-00 EPAE-00 PRM-00
G-00 NFAT-00 SAS-00 SWCI-00 /019W
-------------- 57C4F2 150748Z /38
R 150737Z JAN 02
FM AMEMBASSY HANOI
TO SECSTATE WASHDC 5248
INFO DEPTLABOR WASHDC
USDOC WASHDC
AMEMBASSY PHNOM PENH
AMCONSUL HO CHI MINH CITY

UNCLAS SECTION 02 OF 02 HANOI 000102

SIPDIS

STATE FOR DRL DAS JSCARPENTER, DRL/IL GWHITE
STATE ALSO FOR EAP/BCLTV AND EB/TPP BBOYNTON
USTR FFOR CMILLER, RALPH IVES AND ELENA BRYANT
DEPTLABOR FOR ILAB BETSY WHITE
USDOC FOR 4431/MAC/IEP/OKSA/HPPHO
EMBASSY PHNOM PENH FOR BRUCE LEVINE


SEVERAL COUNTRIES, INCLUDING CANADA AND NORWAY HAD
ELIMINATED QUOTAS ON VIETNAMESE GARMENTS, AND THE EUROPEAN
UNION WAS CONSIDERING DOING SO. FURTHERMORE, HE ARGUED, WTO
MEMBERS HAD AGREED TO PHASE OUT QUOTAS UNDER THE AGREEMENT
ON TEXTILES AND CLOTHING (ATC) BY JANUARY 2005 AND AGREED AT
DOHA TO ACCELERATE THIS PHASE-OUT. THEREFORE, HE REASONED,
THE UNITED STATES SHOULD NOT IMPOSE QUOTAS WHEN IT WAS IN
FACT OBLIGATED TO BEGIN PHASING THEM OUT. (NOTE: AT DOHA,
WTO MEMBERS DID AGREED TO CONSIDER PROPOSALS TO ACCELERATE
REDUCTIONS AND/OR PHASE OUTS OF QUOTAS IN CERTAIN CASES BUT
DID NOT AGREE TO ACCELERATE PHASE OUT OF THE ENTIRE QUOTA
SYSTEM UNDER THE ATC. FURTHERMORE, THE UNITED STATES WOULD
NOT BE OBLIGATED TO EXTEND THIS TREATMENT TO VIETNAM UNTIL
IT JOINS THE WTO. END NOTE)


6. WITH RESPECT TO LABOR ISSUES, VM TU CLAIMED THAT
VIETNAM'S LABOR CODE WAS "PROGRESSIVE" AND WORKING
CONDITIONS HERE COMPARED WELL WITH OTHER COUNTRIES IN THE
REGION AND THOSE WITH SIMILAR LEVELS OF ECONOMIC
DEVELOPMENT. HE REFRAINED FROM COMMENTING FURTHER ON THE
SUBSTANCE OF MS. POLASKI'S PRESENTATION STATING THAT MOLISA,
NOT MOT, HAD JURISDICTION AND EXPERTISE OVER LABOR ISSUES.


7. COMMENT: DESPITE VM TU'S MISINTERPRETATION OF THE
RESULTS OF DOHA IN REGARDS TO THE ATC, HIS COMMENTS REFLECT
THE GVN'S GENERAL DOUBTS AND RELUCTANCE ABOUT A TEXTILE
AGREEMENT, REGARDLESS OF WHETHER IT INCLUDES LABOR
UNCLASSIFIED

PAGE 03 HANOI 00102 02 OF 02 150748Z
PROVISIONS OR NOT. HOWEVER, AS REPORTED REF B, IN A
SUBSEQUENT CONVERSATION WITH AMBASSADOR BURGHARDT, MINISTER
OF TRADE VU KHOAN INDICATED A WILLINGNESS TO MEET TO
"EXCHANGE VIEWS." NONETHELESS, THE BRIEFING BY MS. POLASKI
WAS WELL RECEIVED, AND A NUMBER OF WORKING LEVEL
PARTICIPANTS TOLD LABOR OFFICER THAT THE INFORMATION WAS
VERY USEFUL. PRIOR TO THIS, THE GVN OFFICIALS HAVE
RESPONDED VERY NEGATIVELY TO ANY HINT OF A POTENTIAL
CONNECTION BETWEEN LABOR AND TEXTILES OR ANY OTHER TRADE
ISSUE. THAT THE VIETNAMESE AGREED TO THE BRIEFING INDICATES
THEY ARE IN A LISTENING MODE, GATHERING INFORMATION THEY
NEED TO MAKE MORE INFORMED DECISIONS ABOUT HOW TO APPROACH
US ON THE ISSUE OF TEXTILES AND RESPOND TO U.S. CONCERNS
ABOUT LABOR CONDITIONS IN THIS SECTOR.


8. MS. POLAKSI CLEARED ON THIS MESSAGE.
BURGHARDT

UNCLASSIFIED