The US – Laos NTR Coalition

Urging Congress and Senate

to Support United States

Normal Trade Relations (NTR)

with Laos

NTR Bills

House Bill H.R. 3943
Senate Bill S2200

Summary

Normal Trade Relations (NTR) Agreement is Essential to Laos

Laos is one of the least developing countries in the Southeast Asian region and is one of the poorest countries in the world. The US-NTR Coalition strongly believes that granting Normal Trade Relations (NTR) agreement to Laos will bring these following benefits:

  • Increased economic opportunities;
  • Stimulated foreign investment;
  • Improved gradual socio-economics and political transformations;
  • Improved bilateral relationships between the two countries;
  • Contributed improvement of Human Rights;
  • Reduced the level of poverty;
  • Restored mutual respect and trust between Laotian-Americans and all peoples in Laos

Contact us:

US - Laos NTR Coalition

Content

1.REPRESENTATIVE PHILIP M. CRANE INTRODUCES H.R.3943

  1. SENATOR MAX BAUCUS INTRODUCES S2200

3.LETTER FROM SECRETARY OF STATE COLIN L. POWELL & U.S. TRADE REPRESENTATIVE ROBERT B. ZOELICK

  1. MATTHEW DALEY, DEPUTY ASSISTANT SECRETARY FOR EAST ASIA AND PACIFICS. Saint Paul Pioneer Press. Fri, Feb. 27, 2004

5.ARGUMENT FOR LAO NTR

6.LETTER US-ASEAN BUSINESS COUNCIL TO THE HONORABLE PHILIP M. CRANE

7.LETTER FROM NGO TO U.S. TRADE REPRESENTATIVE THE HONORABLE ROBERT B. ZOELLICK

8.THE LAOTIAN MULTI-ETHNIC ALLIANCE FOR US-LAOS FRIENDSHIP WROTE TO THE HONERABLE PHILLIP M. CRANE

9.By Mr. San Souvannasoth, Dr. Yang Dao, Chair

10.ARTICLE BY CATHARIN DALPINO AND EDWARD GRESSER
11.ARTICLE BY PROFESSOR GRANT EVENS
12.LETTER FROM LAO NTR SUPPORTERS TO U.S. CONGRESS
  1. US-Lao Relations in 2004 - The Course Ahead by U.S. Ambassador Douglas Hartwick
  2. US–Laos NTR Coalition Visits Laos
  3. Members of the U.S. – Laos NTR Coalition
  4. FACT SHEET ON LAOS
  5. MAP OF LAOS

REPRESENTATIVE PHILIP M. CRANE INTRODUCES H.R.3943

108th CONGRESS

2d Session

Bill H. R. 3943

To extend nondiscriminatory treatment (normal trade relations treatment) to the products of Laos.

IN THE HOUSE OF REPRESENTATIVES

March 11, 2004

Mr. CRANE (for himself, Ms. MCCOLLUM, Mr. HOUGHTON, Mr. DOOLEY of California, Mr. WELLER, Mr. CASE, Mr. KOLBE, Mr. EVANS, Mr. PITTS, Mr. CROWLEY, and Mr. LARSON of Connecticut) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To extend nondiscriminatory treatment (normal trade relations treatment) to the products of Laos.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. EXTENSION OF NORMAL TRADE RELATIONS TO LAOS.

(a) Findings- Congress finds that--

(1) the Lao People's Democratic Republic is pursuing a broad policy of adopting market-based reforms to enhance its economic competitiveness and achieve an attractive climate for investment;

(2) extension of normal trade relations treatment would assist the Lao People's Democratic Republic in developing its economy based on free market principles and becoming competitive in the global marketplace;

(3) establishing normal commercial relations on a reciprocal basis with the Lao People's Democratic Republic will promote United States exports to the rapidly growing southeast Asian region and expand opportunities for United States business and investment in the Lao People's Democratic Republic economy;

(4) United States and Laotian commercial interests would benefit from the bilateral trade agreement between the United States and the Lao People's Democratic Republic, signed in 2003, providing for market access and the protection of intellectual property rights;

(5) the Lao People's Democratic Republic has taken cooperative steps with the United States in the global war on terrorism, combating the trafficking of narcotics, and the accounting for American servicemen and civilians still missing from the Vietnam war; and

(6) expanding bilateral trade relations that include a commercial agreement may promote further progress by the Lao People's Democratic Republic on human rights, religious tolerance, democratic rule, and transparency, and assist that country in adopting regional and world trading rules and principles.

(b) Extension of Nondiscriminatory Treatment to the Products of the Lao People's Democratic Republic-

(1) Harmonized tariff schedule amendment- General note 3(b) of the Harmonized Tariff Schedule of the United States is amended by striking `Laos'.

(2) Effective date- The amendment made by paragraph (1) applies with respect to goods entered, or withdrawn from warehouse for consumption, on or after the effective date of a notice published in the Federal Register by the United States Trade Representative that a trade agreement obligating reciprocal most-favored-nation treatment between the Lao People's Democratic Republic and the United States has entered into force.

END

SENATOR MAX BAUCUS

INTRODUCES S2200

Baucus Calls for Normal Trade Relations for Laos

Chairman and Ranking Member of Finance Committee Introduce NTR Legislation

(WASHINGTON, D.C.) U.S. Senators Max Baucus and Chuck Grassley, Ranking Member and Chairman of the Senate Finance Committee, today joined together to introduce legislation that would provide Laos with Normal Trade Relations (NTR). Baucus urged quick passage of the bill, citing that Laos is the only country with which the United States has full diplomatic relations that does not have NTR.

NTR, formerly known as Most-Favored-Nation Treatment, generally provides that all countries the U.S. trades with are treated equally and ensures that any trade benefits or concessions accorded to one country apply to all.

"The denial of NTR to Laos is an unfortunate continuing after-effect of the Vietnam War, which should now be corrected given Laos's cooperation in accounting for U.S. prisoners of war and MIA's since the Vietnam War, and the country's support for our counterterrorism efforts since September 11," Baucus said. "Providing Laos with NTR could significantly improve the country's economy and help their people. Currently, half the population lives below the government's own defined poverty line, which is unacceptable. We need to pass this legislation quickly."

Baucus stated that Laos has taken a number of steps showcasing the country's commitment to working together with the United States. For example, Laos and the U.S. have a long-term bilateral counter-narcotics program in place, which involves multimillion-dollar crop substitution and a rural development program. Laos has taken additional steps to wage a war on the production of illegal drugs by forming its own national committee on narcotics, developing a long-range strategy for counter-narcotics activities, participating in U.S.-sponsored narcotics training programs, and working to improve law enforcement measures to combat the narcotics problem.

The United States and Laos have also negotiated a bilateral trade agreement, which concluded in 1997 and was signed in September 2003.

"Our bilateral trade agreement was an important step forward that obligates Laos to open its markets to U.S. goods and services and to protect U.S. intellectual property rights, but this agreement can't go into effect until NTR is granted to Laos," Baucus added. "Granting NTR to Laos will create opportunities to open the society and improve human rights, religious freedom, and the rule of law in Laos. The country has a lot of work to do, but by granting NTR, we'll bring Laos more fully into the trade fold and help alleviate a number of their economic and societal problems."

As proof of the abilities of NTR to improve economies, Baucus added that more than 200,000 jobs have been created in Cambodia since that country received NTR in 1996.

Eleven members of the U.S. House of Representatives, led by Representative Phillip Crane (R-Ill.), introduced the identical legislation in the House today.

Laura Hayes

Communications Director

U.S. Senate Finance Committee - Minority

Senator Max Baucus, Ranking Member

202-224-4351

LETTER FROM

SECRETARY OF STATE L. COLIN POWELL &

U.S. TRADE REPRESENTATIVE ROBERT B. ZOELLICK

February 26, 2003

SUMMARY

On February 25, the Administration sent to Capitol Hill its request that Congress support normal trade relations to Laos. The letters, signed by Secretary of State Colin Powell and United States Trade Representative (U.S.TR) Robert Zoellick, went

to Chairman William R. Thomas and Ranking Member Charles B. Rangel of the House Ways & Means Committee and to Chairman Charles E. Grassley and Ranking Member Max Baucus of the Senate Finance Committee. (Text appears below).

Dear Mr. Chairman/Ranking Member:

The Administration seeks your support for extending normal trade relations (NTR) status to Laos and for bringing into force the comprehensive bilateral trade agreement that the United States concluded with Laos in 1997. Extension of NTR treatment to Laos, which requires legislation, is necessary to enable the Administration to bring the Agreement into force.

Laos, the only Indochinese country with which the United States has maintained unbroken ties through the Vietnam War and its aftermath, is, paradoxically, the only remaining one of the three which still lacks NTR status. Laos, in fact, is one of only four countries worldwide and the only least developed country to which the United States does not extend NTR.

In areas of concern to the United States, Laos has been cooperative, working closely with U.S. to obtain the fullest possible accounting for our prisoners of war and those missing in action. In addition, we have a long-term bilateral counter-narcotics program including successful alternative development programs. Laos has also responded to our requests for support and cooperation on counter-terrorism following the September 11, 2001, attacks.

Laos is a member of the Association of Southeast Asian Nations, an organization with which we are working to strengthen and promote regional stability and to enhance regional counter-terrorism cooperation. Toward this end, the President announced the Enterprise for ASEAN Initiative (EAI), with a focus on increased investment and, as conditions permit, bilateral free trade agreements. A key step in adding substance to this initiative is granting NTR for Laos.

The Administration shares the Congress's concerns about the Lao government's human rights record, especially with respect to religious freedom and protection of minority rights for its citizens. We continue to press the Lao government on these important issues on a regular and active basis, in Washington and through the U.S. Embassy in Vientiane. The Administration believes that extending NTR to Laos will create a more cooperative atmosphere and opportunities that will help open the society and leverage our efforts to improve human rights, religious freedom and rule of law in Laos.

Moreover, we believe that through normalized trade ties with the United States, Laos will become more integrated in the world trade system. Laos is in the early stages of negotiations to become a member of the World Trade Organization (WTO). The total volume of two-way U.S.-Lao trade is currently less than 10 million dollars annually.

We do not expect the absolute volume of trade to increase markedly following extension of NTR, since Laos is on the United Nations list of least developed countries and has a population of just 5.5 million. However, NTR will open a window of opportunity. Column 2 tariff rates now in effect are prohibitive and suppress the very entrepreneurial spirit we wish to encourage.

The bilateral trade agreement that will come into force following extension of NTR will also promote U.S. interests. The agreement will obligate Laos to open its markets to U.S. goods and services, and to protect U.S. intellectual property rights. This agreement will represent an important step toward economic reform and openness, key U.S. priorities in Laos.

We would like to work with you to determine the best means for moving forward legislatively to grant NTR status for Laos.

Thank you for your consideration.

Sincerely,

Robert B. Zoellick Colin L. Powell

U.S. Trade Representative Secretary of State

MATTHEW DALEY, DEPUTY ASSISTANT SECRETARY FOR EAST ASIA AND PACIFICS

Saint Paul Pioneer Press. Fri, Feb. 27, 2004

Posted on Fri, Feb. 27, 2004

U.S. spells out advice to Hmong

BY TOM WEBB

Washington Correspondent

WASHINGTON — Hmong-American leaders received both a warm welcome and a

stern warning at the U.S. State Department on Thursday, as the U.S.

government tries to improve relations across Southeast Asia after painful decades of war, division and distrust.

For 50 Hmong and Lao leaders from Minnesota and elsewhere, the

history-making moment became clear during three hours of discussion with top State Department officials. Topic A was the upcoming resettlement of Hmong refugees from Thailand's Wat Tham Krabok refugee camp, but improving trade, human rights and religious freedoms also were discussed.

Then came the blunt warning: It's illegal to aid insurgents still operating in Laos, and the United States has no tolerance for Hmong-Americans who do. Matthew Daley, deputy assistant secretary for East Asia and Pacific Affairs, was explicit.

"We know that in Laos there have been planned attacks on civilians in the past year, and we regard those as acts of terrorism," Daley said in an interview after the private meeting. "To the extent that those acts may have been facilitated or supported in some way by persons in the United States, American law is engaged, as well as American policy."

To hammer home the point, a top official from the U.S. Justice Department was on hand to remind the Hmong leaders of federal law.

"The room was very quiet, and I think people are going to reflect on what the Department of Justice said," said U.S. Rep. Betty McCollum, D-St. Paul, who attended the meeting. Two people asked about rumors of a Justice Department investigation into Hmong-American support of rebel activities.

Said McCollum, "The Justice Department, although it could not comment on any possible ongoing investigation, made it very clear to everyone in the room that the U.S. government will not tolerate activities that are directed in a violent or unfriendly manner against governments we are at peace with."

Originally, the Hmong were tribal people from the mountains and jungles of Laos. They secretly allied with the United States during the Vietnam War.

After the communist takeover, many Hmong fled their homeland and became

refugees. Many resettled in the United States, especially in Minnesota and Wisconsin. For some, the passion to fight for their homeland still burns.

But more and more, a new generation of Hmong-Americans hopes for progress in Laos through engagement — improving trade, building better international relations, pushing for human rights and fostering travel. Despite the stern warning, Thursday's gathering was mostly focused on ways to bolster such engagement, in part by finally resolving some issues lingering from the Vietnam era. The resettlement of some 14,000 Hmong refugees in Thailand, a big step in that process, dominated the discussion.

"I think this meeting was great," said Dr. Yang Dao of Minneapolis. "This meeting gave U.S. a lot of information about U.S. policy toward Laos," including normalizing trade relations.

In previous years, some of the refugees now living at Wat Tham Krabok chose to remain there. If there's one message the State Department wanted to send Thursday, it was that this is their last chance to move to the United States.

Daley said the message was that "we have a one-time opportunity to do this and that people who do not take this opportunity to do this may forfeit it forever."

The timetable is very short. "We have begun interviews. We expect to begin the first movements of people in July of this year, and we expect to have this program completed this year. Not in a year, this year — 2004," Daley said.

That message was heard.

"It is the last chance for them," Yang Dao said.

Teom Webb can be reached at or 202-383-6049

ARGUMENTS FOR LAO NTR

ARGUMENTs FOR LAO NTR

  1. Fairness. All of Laos’s neighbors, including Vietnam, China, Cambodia and Burma, have NTR. There is no reason to single Laos out. The only other countries in the world without NTR are Cuba and North Korea, both of which do not have normal diplomatic relations with the US. (Afghanistan and Serbia/Montenegro recently received NTR, while Libya, Burma and Iran face US trade sanctions but have never lost NTR status.)
  2. Historical responsibility. The US fought a secret war in Laos from 1964-1973, the extent of which is still relatively unknown. The legacy of the war includes "bombies" and other UXO as well as Agent Orange and other herbicides. Laos deserves at least normal treatment from the US on this basis.
  3. Economics. Laos is a poor developing country that needs more contact with the outside world to stay afloat. A more prosperous Laos is in the US interest.
  4. Counternarcotics. Passage of the trade agreement is the most cost-effective way to fight opium poppy production, by enabling Lao farmers to produce silk and other products for the US market.
  5. Lao-American cultural and business contacts. Americans of Lao descent should be able to travel and do business freely with their country of origin. American veterans are also interested in these opportunities.

RESPONSES TO OPPOSING ARGUMENTS