VIETNAM COMPLETES WTO ACCESSION NEGOTIATIONS
Following twelve years of negotiations, the WTO Working Party on the Accession of Vietnam finalised and approved the country’s membership on 26 October. The WTO General Council is expected to convene in a special meeting on 7 November to formalise the deal, just days before Hanoi hosts the annual summit of the Asia-Pacific Economic (APEC) Forum.
The final approval from the WTO working party came after Vietnam agreed to open its market to foreign goods and services, and following legal and institutional reform to prepare the country for membership (see BRIDGES Weekly, 18 October 2006). The accession documents include a 560-page list detailing Vietnamese tariffs, quotas and ceilings on subsidies, and timetables for phasing in cuts. In addition, a 60-page document enumerates which services will be opened up by Vietnam and any conditions on that process, including limits on foreign ownership. Vietnam’s Prime Minister Truong Dinh Tuyen expressed his country’s intentions to continue economic liberalisation and international integration after membership is granted.
This breakthrough for the communist-ruled country came after nearly two decades of pushing through liberalising reforms. The reforms have already seen the country experience rapid economic growth. Vietnam’s economy grew by an average 6.8 percent annually from 1997 to 2004, and the Asian Development Bank predicts that Vietnam’s economy will grow by 7.8 percent this year. The road ahead will not be entirely smooth, however. Prime Minister Tan Dung has warned that the country still faces structural challenges, and will have to continue actively integrating into the world economy in order to fully benefit from WTO membership. Local companies will face fierce competition, and while some sectors stand ready to benefit from new trading opportunities, others do not.
The Vietnamese National Assembly is expected to ratify the accession in late November, after which Vietnam will become the 150th Member of the WTO following a waiting period of 30 days.
"Vietnam Gets OK to Join World Trade Organisation," REUTERS, 26 October 2006; "Vietnam’s Completion of WTO Negotiation a Happy End: Spokesman," THANH NIEN NEWS, 27 October 2006; "Vietnam Sees Economic Status Glimmer as WTO Sets Accession Meet," AFP, 28 October 2006; "Vietnam’s WTO Talks Due for Completion Thursday: Trade Source," AFP, 25 October 2006; "WTO Draft Report Says Vietnam Ready to Become Trade Body’s 150th Member," ASSOCIATED PRESS, 24 October 2006.
DSB PANEL TO EXAMINE CHINA’S COMPLIANCE WITH TRADE RULES
Following twelve years of negotiations, the WTO Working Party on the Accession of Vietnam finalised and approved the country’s membership on 26 October. The WTO General Council is expected to convene in a special meeting on 7 November to formalise the deal, just days before Hanoi hosts the annual summit of the Asia-Pacific Economic (APEC) Forum.
The final approval from the WTO working party came after Vietnam agreed to open its market to foreign goods and services, and following legal and institutional reform to prepare the country for membership (see BRIDGES Weekly, 18 October 2006). The accession documents include a 560-page list detailing Vietnamese tariffs, quotas and ceilings on subsidies, and timetables for phasing in cuts. In addition, a 60-page document enumerates which services will be opened up by Vietnam and any conditions on that process, including limits on foreign ownership. Vietnam’s Prime Minister Truong Dinh Tuyen expressed his country’s intentions to continue economic liberalisation and international integration after membership is granted.
This breakthrough for the communist-ruled country came after nearly two decades of pushing through liberalising reforms. The reforms have already seen the country experience rapid economic growth. Vietnam’s economy grew by an average 6.8 percent annually from 1997 to 2004, and the Asian Development Bank predicts that Vietnam’s economy will grow by 7.8 percent this year. The road ahead will not be entirely smooth, however. Prime Minister Tan Dung has warned that the country still faces structural challenges, and will have to continue actively integrating into the world economy in order to fully benefit from WTO membership. Local companies will face fierce competition, and while some sectors stand ready to benefit from new trading opportunities, others do not.
The Vietnamese National Assembly is expected to ratify the accession in late November, after which Vietnam will become the 150th Member of the WTO following a waiting period of 30 days.
"Vietnam Gets OK to Join World Trade Organisation," REUTERS, 26 October 2006; "Vietnam’s Completion of WTO Negotiation a Happy End: Spokesman," THANH NIEN NEWS, 27 October 2006; "Vietnam Sees Economic Status Glimmer as WTO Sets Accession Meet," AFP, 28 October 2006; "Vietnam’s WTO Talks Due for Completion Thursday: Trade Source," AFP, 25 October 2006; "WTO Draft Report Says Vietnam Ready to Become Trade Body’s 150th Member," ASSOCIATED PRESS, 24 October 2006.
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