VZCZCXRO2161
RR RUEHHM
DE RUEHHI #0197/01 0300852
ZNR UUUUU ZZH
R 300852Z JAN 07
FM AMEMBASSY HANOI
TO RUEHC/SECSTATE WASHDC 4503
INFO RUEHHM/AMCONSUL HO CHI MINH 2448
RUEHGV/USMISSION GENEVA 1161
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC

UNCLAS SECTION 01 OF 02 HANOI 000197 
 
SIPDIS 
 
STATE FOR EAP/MLS 
STATE PASS TO USTR DAVID BISBEE 
COMMERCE FOR 4431/MAC/AP/OPB/VLC/HPPHO 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: KTEX ETRD ECON PREL WTRO VM
SUBJECT: VIETNAM CONTINUES TO OPPOSE APPAREL MONITORING 
 
Ref: A) HANOI 0082 B) 06 HANOI 3071 C) 06 HANOI 3084 
 
¶1.  (SBU) The Ministry of Trade (MOT) has again registered its 
strong opposition to the Department of Commerce's proposed 
monitoring mechanism on textile and apparel products from Vietnam. 
The reaction was prompted by the second Federal Register notice, 
published January 18, calling for public comments on the monitoring 
program. In a January 29 diplomatic note, the Ministry cites the 
difficulties the program has created for U.S. importers as well as 
Vietnamese manufacturers and workers.  It views the mechanism as 
contrary to President Bush's commitment and a violation of the 
non-discrimination principle of the WTO.  MOT proposes that the USG 
reconsider and withdraw the proposed import monitoring program. 
Full text of the diplomatic note is in paragraph 2.  Post 
understands that Trade Minister Truong Dinh Tuyen reiterated 
Vietnam's concerns in his meeting with Deputy U.S. Trade 
Representative Karan Bhatia in Davos on January 26. 
 
¶2. (SBU) Text of diplomatic note (MOT-provided translation): 
 
BEGIN TEXT 
 
(Free Translation) 
Ministry of Trade 
The Socialist Republic of Vietnam 
 
Ref: VN-US/1/01/07 
 
The Ministry of Trade of the Socialist Republic of Vietnam presents 
its compliments to the Department of Commerce of the United States 
of America and once again expresses its strong opposition to the 
"Import Monitoring Program on Textile and Apparel Products from 
Vietnam," that the U.S. Department of Commerce has again put forth 
for public comments for the second round. 
 
The Ministry of Trade of Vietnam understands that the current 
monitoring system of the U.S. for all textile and apparel products 
imported from all countries in the world (including Vietnam) is a 
comprehensive, detailed and transparent system, and above all, is a 
fair and equitable system for all trading partners of the U.S. who 
are WTO members.  Therefore, there are neither legal grounds nor 
arguments convincing enough for the U.S. side to design an 
additional monitoring Program specifically for textile and apparel 
products imported from Vietnam alongside the current monitoring 
system.  Moreover, the presence of a monitoring mechanism 
specifically for Vietnam's textile and apparel products also goes 
contrary to what U.S. President George W. Bush committed to with 
Prime Minister Nguyen Tan Dzung in the letter that the U.S. 
President sent to the Prime Minister of the Socialist Republic of 
Vietnam, saying: the monitoring system will ensure 
non-discrimination against Vietnam's textile and apparel products. 
 
Although the additional information in the second-round proposal 
mentions that fact that this Program does not aim at restraining 
legal trade, in fact it has created negative impacts - causing 
worries and unstable mentality for U.S. importers placing orders in 
Vietnam right from the very first month of 2007, and making it 
impossible for Vietnam textiles and apparel manufacturers to 
proactively plan their production, and above all, creating 
instabilities for workers in Vietnam's textiles and apparel 
industries.  This is the first and obvious damage for Vietnam having 
become a WTO member.  In the capacity of an official member of the 
WTO, Vietnam has the obligations to fully implement its commitments 
and the principles of WTO, and at the same time, has the rights to 
demand the satisfaction of its legitimate interests as a member. 
Based on the violation of this Program with respect to the 
non-discrimination principle of WTO and Article XXIII of the GATT 
Agreement of 1994, and for the reasons stated in this letter and the 
letter that the Ministry of Trade sent to the U.S. Department of 
Commerce on December 22 2006, the Ministry of Trade of the Socialist 
Republic of Vietnam does not accept the monitoring mechanism 
specifically for Vietnam textile and apparel products and proposes 
that the U.S. Government seriously reconsider and withdraw the 
proposal on the Import Monitoring Program on Textile and Apparel 
Products from Vietnam. 
 
Once again, the Ministry of Trade of the Socialist Republic of 
Vietnam avails itself of this opportunity to renew to the U.S. 
Department of Commerce the assurances of its highest consideration. 
 
Hanoi, 29 January 2007 
 
To: U.S. Department of Commerce 
CC: United States Trade Representative 
    U.S. Embassy in Hanoi 
    Vietnam Embassy in the U.S. 
 
HANOI 00000197  002 OF 002 
 
 
 
END TEXT 
 
¶3. No original to follow. 
 
MARINE