Trading with a former enemy

THREE DECADES AFTER the last American helicopter flew into the Saigon sunrise, the final milestone in the U.S. reconciliation with Hanoi is within reach. There is no reason to wait any longer. Congress should expedite the extension of permanent normal trade relations to Vietnam.

The last 15 years have seen a welcome thaw in U.S.-Vietnamese relations, highlighted by the normalization of political relations in 1995. With a dynamic and burgeoning economy, Vietnam has also become one of the fastest-growing markets for American exports. Vietnam is on the verge of joining the World Trade Organization. Hanoi has promised to further reduce tariffs and engage the global economy as it continues to adopt market reforms -- much like China -- that deviate from Marxist orthodoxy and have expanded freedoms for most Vietnamese.

There is, however, a vestige of the Cold War that stands in the way of doing right by Vietnam: a 1974 trade bill that denied communist countries normal trade relations, which guarantee a country the same tariff levels and market access granted to all members of the WTO. President Bush has granted Vietnam temporary normal trade relations since 2001. Yet if Congress doesn’t grant Vietnam permanent normal trade relations before it becomes an official WTO member in mid-November, the U.S. will be forced to treat Vietnam, for purposes of bilateral trade, as if it remained outside the organization.

Both countries would lose out on trade while other nations gain an edge on the U.S. in the Vietnamese market. Sabotaging Vietnam’s attempt to be a full participant in the global economy would also be an unnecessary diplomatic slap in the face on the eve of Bush’s planned November trip to Hanoi.

Passing trade legislation in Washington is never easy, but the deal with Vietnam is not terribly controversial. The measure has unanimously cleared a Senate committee and is expected to breeze through that chamber soon. The bottleneck seems to be the House Ways and Means Committee. Chairman Bill Thomas (R-Bakersfield) has insisted that he supports the measure and that it will be passed before Bush’s visit, but the Vietnam bill is waiting behind a more controversial trade agreement with Peru. There is speculation that Thomas is holding the Vietnam bill hostage to leverage the Peru bill.

Congress needs to act promptly. Given this nation’s history, it has a moral and strategic imperative to pursue reconciliation with Vietnam.