US business fears may not get Vietnam WTO benefits

WASHINGTON, Oct 27 (Reuters) US companies could miss out on the benefits of Vietnam's entry into the World Trade Organization unless Congress quickly approves permanent normal trade relations, a US business group has warned.

''It is critical that Congress grant PNTR (permanent normal trade relations) when it reconvenes'' after the November 7 congressional elections, Virginia Foote, president of the US-Vietnam Trade Council, said in a statement.

A WTO working party in Geneva approved a set of documents yesterday setting out the terms for Hanoi to join the world trade body after 12 years of tough negotiations.

The entry documents will go before the full WTO membership for expected approval probably on November 7.

The accession package incorporates a bilateral deal Washington concluded with Hanoi earlier this year.

However, Vietnam does not have to provide the United States any of the market-opening benefits of its accession to the WTO until Washington approves PNTR.

''Vietnam has made significant concessions as part of its accession package, and American farmers, manufacturers and service providers will all be at a severe disadvantage if Congress fails to act quickly and grant PNTR,'' Foote said.

PNTR is a relic of the Cold War, when the United States linked trade benefits for Communist countries to the rights of Jews and other religious minorities to emigrate freely.

The United States currently extends normal trade relations to Vietnam on a renewable basis, but WTO rules require it to make that trade status permanent when Hanoi becomes a fellow member. Normal trade relations mean US tariffs on Vietnamese goods would be the same as for most other countries.

There is broad support in Congress for approving PNTR for Vietnam, but business groups fear lawmakers may not get to the bill if the post-election session is shorter than expected or opponents try to block passage by offering onerous amendments.

Even in the best of circumstances, Congress would have to work quickly to approve PNTR by the time President George W Bush visits Hanoi the weekend of November 18-19 for the annual APEC (Asia Pacific Economic Cooperation) summit meeting.

Reuters DKS VP0447