Identifier
Created
Classification
Origin
07HANOI197
2007-01-30 08:52:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Hanoi
Cable title:  

VIETNAM CONTINUES TO OPPOSE APPAREL MONITORING

Tags:  KTEX ETRD ECON PREL WTRO VM 
pdf how-to read a cable
VZCZCXRO2161
RR RUEHHM
DE RUEHHI #0197/01 0300852
ZNR UUUUU ZZH
R 300852Z JAN 07
FM AMEMBASSY HANOI
TO RUEHC/SECSTATE WASHDC 4503
INFO RUEHHM/AMCONSUL HO CHI MINH 2448
RUEHGV/USMISSION GENEVA 1161
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
UNCLAS SECTION 01 OF 02 HANOI 000197 

SIPDIS

STATE FOR EAP/MLS
STATE PASS TO USTR DAVID BISBEE
COMMERCE FOR 4431/MAC/AP/OPB/VLC/HPPHO

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: KTEX ETRD ECON PREL WTRO VM
SUBJECT: VIETNAM CONTINUES TO OPPOSE APPAREL MONITORING

Ref: A) HANOI 0082 B) 06 HANOI 3071 C) 06 HANOI 3084

UNCLAS SECTION 01 OF 02 HANOI 000197

SIPDIS

STATE FOR EAP/MLS
STATE PASS TO USTR DAVID BISBEE
COMMERCE FOR 4431/MAC/AP/OPB/VLC/HPPHO

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: KTEX ETRD ECON PREL WTRO VM
SUBJECT: VIETNAM CONTINUES TO OPPOSE APPAREL MONITORING

Ref: A) HANOI 0082 B) 06 HANOI 3071 C) 06 HANOI 3084


1. (SBU) The Ministry of Trade (MOT) has again registered its
strong opposition to the Department of Commerce's proposed
monitoring mechanism on textile and apparel products from Vietnam.
The reaction was prompted by the second Federal Register notice,
published January 18, calling for public comments on the monitoring
program. In a January 29 diplomatic note, the Ministry cites the
difficulties the program has created for U.S. importers as well as
Vietnamese manufacturers and workers. It views the mechanism as
contrary to President Bush's commitment and a violation of the
non-discrimination principle of the WTO. MOT proposes that the USG
reconsider and withdraw the proposed import monitoring program.
Full text of the diplomatic note is in paragraph 2. Post
understands that Trade Minister Truong Dinh Tuyen reiterated
Vietnam's concerns in his meeting with Deputy U.S. Trade
Representative Karan Bhatia in Davos on January 26.


2. (SBU) Text of diplomatic note (MOT-provided translation):

BEGIN TEXT

(Free Translation)
Ministry of Trade
The Socialist Republic of Vietnam

Ref: VN-US/1/01/07

The Ministry of Trade of the Socialist Republic of Vietnam presents
its compliments to the Department of Commerce of the United States
of America and once again expresses its strong opposition to the
"Import Monitoring Program on Textile and Apparel Products from
Vietnam," that the U.S. Department of Commerce has again put forth
for public comments for the second round.

The Ministry of Trade of Vietnam understands that the current
monitoring system of the U.S. for all textile and apparel products
imported from all countries in the world (including Vietnam) is a
comprehensive, detailed and transparent system, and above all, is a
fair and equitable system for all trading partners of the U.S. who
are WTO members. Therefore, there are neither legal grounds nor
arguments convincing enough for the U.S. side to design an
additional monitoring Program specifically for textile and apparel
products imported from Vietnam alongside the current monitoring
system. Moreover, the presence of a monitoring mechanism
specifically for Vietnam's textile and apparel products also goes
contrary to what U.S. President George W. Bush committed to with
Prime Minister Nguyen Tan Dzung in the letter that the U.S.
President sent to the Prime Minister of the Socialist Republic of
Vietnam, saying: the monitoring system will ensure
non-discrimination against Vietnam's textile and apparel products.

Although the additional information in the second-round proposal
mentions that fact that this Program does not aim at restraining
legal trade, in fact it has created negative impacts - causing
worries and unstable mentality for U.S. importers placing orders in
Vietnam right from the very first month of 2007, and making it
impossible for Vietnam textiles and apparel manufacturers to
proactively plan their production, and above all, creating
instabilities for workers in Vietnam's textiles and apparel
industries. This is the first and obvious damage for Vietnam having
become a WTO member. In the capacity of an official member of the
WTO, Vietnam has the obligations to fully implement its commitments
and the principles of WTO, and at the same time, has the rights to
demand the satisfaction of its legitimate interests as a member.
Based on the violation of this Program with respect to the
non-discrimination principle of WTO and Article XXIII of the GATT
Agreement of 1994, and for the reasons stated in this letter and the
letter that the Ministry of Trade sent to the U.S. Department of
Commerce on December 22 2006, the Ministry of Trade of the Socialist
Republic of Vietnam does not accept the monitoring mechanism
specifically for Vietnam textile and apparel products and proposes
that the U.S. Government seriously reconsider and withdraw the
proposal on the Import Monitoring Program on Textile and Apparel
Products from Vietnam.

Once again, the Ministry of Trade of the Socialist Republic of
Vietnam avails itself of this opportunity to renew to the U.S.
Department of Commerce the assurances of its highest consideration.

Hanoi, 29 January 2007

To: U.S. Department of Commerce
CC: United States Trade Representative
U.S. Embassy in Hanoi
Vietnam Embassy in the U.S.

HANOI 00000197 002 OF 002



END TEXT


3. No original to follow.

MARINE