Comparison of Obligations in U'S'Vietnam Bilateral Trade Agreement with WTO Accession Requirements

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Comparison of Obligations in U.S.-Vietnam
Bilateral Trade Agreement with WTO Accession
Requirements

• Demetrios J. Marantis
• Chief Legal Advisor, U.S.-Vietnam Trade Council
• demetrios.marantis_at_usvtc.org
• www.usvtc.org
• Seminar on Vietnams Accession to the WTO
• Hanoi Hilton Opera
• 6 August 2003

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Overview From the BTA to the WTO
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Overview From the BTA to the WTO

• BTA Bilateral MFN Agreement/Lays Foundation for
  WTO
• Types of Trade Agreements
• Pre-WTO MFN Trade Agreement (e.g., BTA)
• WTO WTO Accession
• Post WTO WTO Plus FTAs (e.g., U.S.-Singapore
  FTA)
• Historical Context
• Necessary for U.S. to apply MFN tariffs to
  Vietnam
• Other countries have also gone through MFN
  agreements with U.S. (e.g., Russia, Cambodia)
• Big Step to WTO
• BTA based on WTO principles
• Through BTA, Vietnam has already committed to do
  many of the things that will be required of it
  for WTO accession.

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Overview From the BTA to the WTO

• Some BTA obligations incorporate WTO Agreements
  in full.
• Ch. I, Art. 3(4) incorporates WTO Customs
  Valuation Agmt.
• Ch. IV, Art. 11 incorporates substantive
  provisions of WTO TRIMs Agmt
• Chapter VI, Art. 8 incorporates WTO Import
  Licensing Agreement
• WTO Accession will require Vietnam to apply
  such agreements
• to all WTO Members.
• Some BTA obligations incorporate partial WTO
  obligations.
• Chapter I incorporates fundamental principles of
  SPS, TBT, and others
• Chapter II incorporates most of TRIPS Agreement
• Chapter III incorporates most of GATS
• Chapter VI based on WTO transparency principles
• WTO Accession will require Vietnam to assume
  full agreements,
• where relevant (i.e.., SPS, TBT, TRIPS, GATS),
  and apply to all
• Members.

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Overview From the BTA to the WTO

• Some BTA commitments will form basis of
  negotiations with Members.
• Ch. I, Annex E tariff commitments
• Ch. III, Annex G services commitments
• WTO Members will expect Vietnam to
  multlateralize these commitments
• pursuant to WTO MFN obligations.
• Some BTA obligations have no WTO equivalents.
• Ch. II certain provisions provide more than the
  TRIPs
• Ch. IV investment provisions (other than TRIMs)
• Ch. V business facilitation
• Ch. VI certain transparency provisions provide
  more than WTO
• Most (but not all) of these provisions will not
  play role in WTO accession negotiations.

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Overview From the BTA to the WTOKey Questions
for WTO Accession

• Where is WTO Accession BTA Plus?
• Which BTA Commitments Do WTO Provisions Require
  Vietnam to Multilateralize?
• What Benefits Does the WTO Provide that the BTA
  Does Not?
• How Does BTA Implementation Facilitate WTO
  Accession by 2005?

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Where is WTO Accession BTA Plus?
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Where is WTO Accession BTA Plus?
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Where is WTO Accession BTA Plus? (Cont.)
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Where is WTO Accession BTA Plus? (Cont.)
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Where is WTO Accession BTA Plus? (Cont.)
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Which BTA Commitments Do WTO Provisions Require
Vietnam to Multilateralize?
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Which BTA Commitments Do WTO Provisions Require
Vietnam to Multilateralize?
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Which BTA Commitments Do WTO Provisions Require
Vietnam to Multilateralize? (Cont.)
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Which BTA Commitments Do WTO Provisions Require
Vietnam to Multilateralize? (Cont.)
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What Benefits Does WTO Accession Provide That
the BTA Does Not?
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What Benefits Does WTO Accession Provide That
the BTA Does Not?
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What Benefits Does WTO Accession Provide That
the BTA Does Not? (Cont.)
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How Does BTA Implementation Facilitate WTO
Accession by 2005?
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How Does BTA Implementation Facilitate WTO
Accession by 2005?
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How Does BTA Implementation Facilitate WTO
Accession by 2005? (Cont.)
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Conclusion
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Conclusion The BTA and Post-2005

• BTA reflects WTO Agreements as the are today.
• Today So many BTA obligations stem from/similar
  to WTO Accession requirements.
• Tomorrow WTO in process of evolution.
• Accessions get harder each time. Easier to
  accede in 1995 than now.
• Doha obligations could add new accession
  requirements.
• Countries negotiating post-2005 could face harder
  time.
• BTA sets stage for 2005 Accession.
• WTO accession requirements are what they are.
• BTA, which incorporates and phases-in many of
  these requirements, helps accomplish 2005 goal.

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• August 2003