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| Southeast Asia |
| Vietnam poised to join WTO |
| 2006-10-29 |
| Vietnam on Thursday completed its protracted negotiations to join the World Trade Organisation, putting it on track to become the WTO’s 150th member. Hanoi, which has been negotiating entry since 1995, has accepted tough conditions as the price of joining the world trade club and the more favourable trade terms offered to members. While Vietnam’s competitive clothing manufacturers will benefit from fewer restrictions on their exports to the US and Europe, other sectors in the still heavily state-dominated economy will face stiffer competition from foreign suppliers and the removal of many government subsidies. Vietnam, with a population of 84m, has experienced rapid growth since economic liberalisation policies were put in place in the early 1990s, and is now the best performing economy in Asia after China. Exports have grown by leaps and bounds, despite restrictions such as US anti-dumping duties on catfish imposed three years ago and a recent decision by the European Union to impose duties on Vietnamese and Chinese shoes. Truong Dinh Tuyen, Vietnamese trade minister, said he hoped his country’s “extensive and far-reaching” WTO commitments would allow its economic momentum to continue. The WTO’s governing council is due to endorse Vietnam’s accession terms at a special meeting on November 7. The Vietnamese National Assembly is expected to ratify the accords by December 5, and Vietnam will become a member 30 days after ratification is notified to the WTO. |
| Posted by:Steve White |
| #3 Not everyone can be in manufacturing. Perhaps so, but manufacturing still represents a strategic asset in times of war. Even in relative peace the ability to fabricate high speed integrated circuits is critical to national security. We must not rely on any other nation, ally or foe for mission critical components. America must always be able to produce its uniforms, ordnance and other warfighting materiel. Far too much of our manufacturing base is being eroded by China and other WTO participants who do not interact on a level playing field. China is by far the worst of them, but has bought off such a huge portion of our government as to be relatively immune. Should we ever go back to another real World War, our lack of massive manufacturing base will come back to bite us hard. Why communist Vietnam is being granted accession into the WTO is a big WTF. I'd wager it has more to do with post-Vietnam War angst than any realistic economics. |
| Posted by: Zenster 2006-10-29 22:01 |
| #2 I've been saying for years that we are simply going to have to give up manufacturing cheap items. It can be done cheaper in other countries. We have lost it, it is gone, get on with bigger and better things. That kind of manufacturing is not the mainstay of a mature economy, it is for developing economies and underdeveloped countries. Not everyone can make brakepads for a living. Not everyone can be in manufacturing. |
| Posted by: bigjim-ky 2006-10-29 18:21 |
| #1 Sheesh. Another totalitarian state-controlled economy to ankle-bite, triangulate, and dilute the forum away from the only system which rewards individual effort: capitalism. Is that immediate reaction completely wrong? My BS detector pegs regularly regards "international" forums. I do not have confidence (lol, it's a boggle where my cynicism originates) that the US gains more than it loses in such things. The WTO strikes me as something a State Dept asstard would love, so my first reaction is that it's a negative indicator - take the opposite view by default. I understand what it's supposed to do, from the link, but still my doubts stubbornly persist, lol... Perhaps some of our obviously well-tutored RBers can make simple for / against cases regards the WTO to counterbalance the standard and expected propaganda version available at their site. I'm just looking for the 90K ft view of reality here, not expecting anyone to write a book. From what I've seen in the news, it seems to work against the US, especially very large & successful US Corps, such as the EU mugging, threatening, and successfully black-mailing MS, and I'm wondering if that view is accurate. The UN of Trade, with all of the connotations that entails, describes my cynical view fairly well. TIA to anyone who tosses in some learned real-world info. |
| Posted by: .com 2006-10-29 10:09 |