Bridges Weekly Trade News Digest • Volume 10 • Number 33 • 11th October 2006
WTO In Brief
VIETNAM ENTERS FINAL PHASE OF WTO ACCESSION
WTO Members and Vietnam may be able to finalise the Southeast Asian nation’s terms of accession to the global trade body by the end of the month, thus concluding negotiations that have lasted over 11 years.
The working party responsible for Vietnam’s WTO accession held a brief formal meeting on 9 October. Norwegian Ambassador Eirik Glenne, who chairs the working party, has set 13 October as the deadline for sorting out any unsolved problems. "This means that very intensive work must be carried out this week to close all the remaining issues," he said. "I recognise it is tight, but we have no alternative."
The accession package consists of three main agreements. The first sets out Vietnam’s commitments on goods, detailing specific commitments to reduce tariffs and agricultural subsidies — these are the result of bilateral negotiations between Vietnam and several WTO members that were concluded in May 2006. The second outlines its obligations to open services sectors to foreign competition, along with any limits on foreign ownership. The third is the working party’s report, which sets forth the institutional and legal framework for trade.
Notably, as part of its accession commitments, Vietnam joined the company of fewer than half of the WTO’s Members by signing on to the Information Technology Agreement, requiring it to eliminate duties on most information technology products.
Finishing the deal by the end of the month would in principle allow the General Council to adopt the proposal at a special meeting in early November, making Vietnam the 150th member of the WTO in early December.
Vietnamese government officials and groups such as Oxfam have complained that the country has had to make deeper liberalisation commitments than other comparable states as the price of its WTO accession (see BRIDGES Weekly, 26 July 2006).
The final formal meeting of the working party has been scheduled for 26 October.
ICTSD reporting; "Viet Nam’s membership deal possible by end of month, Chair says," WORLD TRADE ORGANIZATION, 9 October 2006; "Vietnam’s WTO accession talks slowed but entry still possible this year, officials say," INTERNATIONAL HERALD TRIBUNE, 9 October 2006; "WTO: Viet Nam membership Possible By End Oct," INTERNATIONAL BUSINESS TIMES, 10 October 2006; "Vietnam to cancel agricultural and industrial subsidies," VIETNAMNET BRIDGE, 7 October 2006; "Vietnam’s WTO Accession Talks Slowed," ASSOCIATED PRESS, 9 October 2006. .