Laos Laos does not currently receive NTR status because it is included in the Harmonized Tariff Schedule (HTS) of the United States in General Note 3(b) on the list of countries whose products are subject to column 2 (non-NTR) tariff rates. JacksonVanik provisions in the Trade Act of 1974 do not apply to Laos because the country was not a "non-market economy" when the Trade Act was passed on January 3, 1975. The Lao Government has been introducing economic reforms since 1986 and is slowly becoming integrated with its neighbors in the Southeast Asian region. Laos joined the Association of Southeast Asian Nations in 1997, and Laos is in the early stages of negotiations to become a member of the WTO. In 1997, the United States and the Lao People's Democratic Republic concluded a bilateral trade agreement which calls for a reciprocal extension of NTR. That agreement has not yet entered into force. The agreement will obligate Laos to open its markets to U.S. goods and services and to protect U.S. intellectual property rights. The agreement will represent an important step toward economic reform and openness, key U.S. priorities in Laos. The only action required to grant permanent NTR status to Laos and to enact the 1997 bilateral trade agreement is for Congress to enact legislation amending the HTS to strike Laos permanently from General Note 3(b). On February 24, 2003, Secretary of State Colin Powell and United States Trade Representative Robert Zoellick sent a joint letter to Congress expressing the Administration's support for extending NTR status to Laos and for bringing into force the 1997 agreement. DETAILS FOR SUBMISSION OF WRITTEN COMMENTS: Please Note: Due to the change in House mail policy, any person or organization wishing to submit a written statement for the printed record of the hearing should send it electronically to hearingclerks.waysandmeans@mail.house.gov, along with a fax copy to (202) 225-2610, by the close of business, Monday, April 21, 2003. The U.S. Capitol Police will refuse sealed-packaged deliveries to all House Office Buildings. FORMATTING REQUIREMENTS: Each statement presented for printing to the Committee by a witness, any written statement or exhibit submitted for the printed record or any written comments in response to a request for written comments must conform to the guidelines listed below. Any statement or exhibit not in compliance with these guidelines will not be printed, but will be maintained in the Committee files for review and use by the Committee. 1. 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Note: All Committee advisories and news releases are available on the World Wide Web at http://waysandmeans.house.gov. To Whom It May Concern: Aid to Artisans Hartford, Connecticut 06114 April 2, 2003 We are writing to voice our support for Normal Trade Relations (NTR) with Laos, one of the world's least developed countries. We ask that the legislature pass the necessary legislation to extend NTR to Laos and bring into force the bilateral trade agreements concluded in 1997. NTR will benefit both the US and Laos. Increased trade between our two countries will lead to greater economic opportunities and swifter economic development in Laos. The lifting of the tariffs will directly improve the living standards of hundreds of weavers, silversmiths, and basket-makers whose way of life, which is such an important part of the economy and so undemanding of the environment, is severely penalized by the current tariffs. We feel it would be wise in this time of war to be able to make a simple peaceable improvement in the lives of hard-working people, such as these artisans. Laos is a member of ASEAN, an organization with which the US is working to strengthen regional stability. As such, Laos deserves the same benefit of NTR as its fellow ASEAN members. Thank you for your consideration, Clare Brett Smith President [BY PERMISSION OF THE CHAIRMAN:] From: A group of Lao community in Nordic countries and UK To: Honorable Members of Subcommittee of Trade, USA House of Granting NTR to LaoPDR is a right way that American Congressmen choose and make two countries close partners in the trade. Honorable Members of House of Representatives We, undersigned, believe that a currently emerging support from American people and Congressmen to approve the NTR agreement for the LaoPDR is a supremacy of foreign policy of the USA towards the developing countries. This tendency paves the way for opening the prospects of ASEAN-American free trade area and to promote the investment. The ASEAN-American free trade area will be a good model for the other regions. In realising this goal, the NTR must be given to the LaoPDR. Laos is the only remaining country in southeast Asia without NTR. Laos is rated one of the poorest developing countries in the world but due to the discriminatory tariffs barriers with the United States they are subject to the highest average tariffs. Looking at the Lao-American relations, our two countries have always maintained the unbroken diplomatic relations since its 1955 year establishment. Both countries have cooperated each other in different fields, such as POW/MIA, drug programmes and counter-terrorism. These activities have been implemented successfully in the LaoPDR. The American delegations at different level while visiting Laos appreciate the POW/MIA programmes and the Opening Market Economic Policy in the country. They are also satisfied with the changes in the political and economic fields in Laos, where the first constitution in 1991 and from that the number of laws have been adopted by the National Assembly. The Lao government has attached great importance to improving the living standard of the people in the whole country. In the National Assembly and the government there are more women taking the high positions. There is not a big gap between men and women in the political, economic and social administration. The equality gender has been improved. The ethnic minorities or tribes enjoy their full rights to carry out their engagement to work for the prosperity of the country. Unfortunately, the financial and economic crisis in the Asia in the 1997 has affected LAOPDR so far,the Lao government seeks the ways to integrate the country into the World Economies and to create the conditions for becoming a member of WTO in the future. But,Laos lacks the NTR from the USA which is a fundamental instrument in order to attract more investors from the USA. The sound and safe economies of LaoPDR rests with the NTR granting,as the US market is big and reliable partner for ASEAN countries. Lao and American business people need to cooperate each other in the field of trade and investment. We are convinced that granting NTR to Laos can bring only mutual benefit to our both countries. It will also contribute to improving the living standard of the Laos people and to reduce the poverty and create the conditions for WTO membership in the future. Finally, the LaoPDR will be left out underdevelopment in 2020. Granting the NTR will also develop the small and medium business sectors in the LaoPDR and pave the ways for investors from the USA to Laos. We would like honorable members to consider the normalization of trading relations between the USA and LaoPDR and urge the Congressmen to adopt the NTR agreement. The adoption of the NTR for LaoPDR will strengthen the bilateral trade and economic cooperation. Respecfully yours, Stockholm, 16 April 2003 Kaykeo Akkhamountry, Oslo, Norway, Bounlom Keobouahom, Bergen, Norway, Sitthiroth Rasphone, Norwich, U.K., Xayadeth Phouyavong, Ange, Sweden, Silavanh Sawathvong, Umeå, Sweden, Vilachith Phommasack, Uppsala, Sweden, Phonephet Chounlamountry, Täby, Sweden, Khambou Hagberg, Skarpnäck, Sweden, Vanthong Phengvichith, Uppsala, Sweden, Vanvilay Phalamixay, Vällingby, Sweden, Amphone Souvannasy, Jokkmok, Sweden, Viengphet Vanthanouvong, Uppsala, Sweden Aloun Farms Kapolei, Hawaii 96709 Honorable Philip M Crane, Chairman Subcommittee on Trade, House of Representatives, United States Congress Honorable Edward Case, Dear Congressmen Crane and Case: My family and I are Hawaii-based Laotian American and owned and operate Aloun Farm, Inc. one of Hawaii State larger grower of vegetables, melons, and corn that operates 3,200 acres and employs over 200 workers in Central Oahu. I am writing in support of the Bush Administration's recommendation to grant permanent NTR to Laos (Lao People's Democratic Republic). In accord with my fellow colleague of Laotian-American community leaders/professionals in Hawaii and those across the U.S. Mainland, I respectfully urge your full review of our joint statements, and take favorable action by your esteemed Committee. The said statement outlines the socio-political, and humanitarian reasons for granting the NTR to Laos. Laos is geo-politically located in a critical place and holds a tremendous social and economic potential value not only to its ASEAN neighboring countries, but can be a rich agriculture trading region with the U.S. in the years ahead. In recent years, I had the privilege to travel throughout Asia and have started a few businesses in Thailand and Southern China in the agriculture trade. I see Laos to have the idea resources and climate to grow fruits and vegetables during the winter months that the greater north Asia cannot. Allowing US-NTR status to Laos will pave the way with such agricultural and economic growth that will pave the foundation for a stability region. Sincerely, Alec Sou General Manager/Owner Dear Friends and Relatives: Pleases write a few lines (copy the Statement attached to my later) and send it out. Ask as many of your friends who are U.S. citizens to write to both Crane and their own congressan (for Hawaii residence copy Congressman Neil Abercrombie, email as shown below; or Ed Case ed.case@mail.house.gov). you can also fax or both fax and email. Your letter counts. Deadline is 21 April. Rush! PP Sent: Saturday, April 12, 2003 08:14 Subject: Support for Granting U.S Normal Trade Relation (NTR) to Laos April 11, 2003, Honolulu, Hawaii Honorable Philip M Crane, Chairman, Subcommittee on Trade, Committee on Ways and Means' House of Representatives, Honorable Neil Abercrombie, Dear Congressmen Crane and Abercrombie: I am a Hawaii-based Laotian American and President and CEO of Pacific Management Resources (PacMar Inc.), a well-established international consulting company that has been providing professional and business advisory services throughout the Asia Pacific region for the past two decades. I am writing in support of the Bush Administration's recommendation to grant permanent NTR to Laos (Lao People's Democratic Republic). For this purpose, I have attached a statement which was jointly drafted and adopted by key Laotian-American community leaders/professionals in Hawaii and those across the U.S. Mainland. The said statement, in my view, reflects very accurately the opinions of the vast majority of the 4,000 Laotian-Americans in Hawaii, and over half million other Laotian-Americans across the United States, on this issue. I respectfully urge your full review of this statement, and favorable action by your esteemed Committee. The said statement outlines the socio-political, and humanitarian reasons for granting the NTR to Laos. I would like to add the following additional economic and strategic reasons for granting the NTR to Laos: We support granting the NTR for Laos not only because it reflects the collective sentiments of the vast majority of the Laotian-American communities in Hawaii and across the U.S.; but, more importantly, granting the NTR to Laos will serve the best long-term economic and strategic interests of the United States of America in the greater ASEAN region. Laos is a member of ASEAN. The country is strategically located right in the heart of the Greater Mekong Sub-Region (GMS), which is home to over 250 million ethnically diverse populace with some of the fastest-growing markets and most dynamic economies, including those of China, Vietnam, Thailand, as well as the newly emerging but fast-changing economies of Cambodia, and Burma. Major multi-lateral funding agencies (e.g. the ADB, Worldbank), bilateral donors, and leading private U.S. and other multi-national companies are committing massive aid and investment resources into the GMS. They view the GMS as one large, and increasingly integrated market, and highly promising new investment "frontiers," of which Laos is an inseparable part. Major multi-modal infrastructural networks (new trans-national road networks, railroads, civil aviation and telecommunication systems) are being planned and developed at rapid pace for this GMS region, most of them connecting to and/or traversing various parts of Laos (which shares common boarders with all other five GMS nations). Laos-being richly endowed with diverse forestry/mineral resources, and vast exportable hydro-power potential is poised to be one of the key "hubs" for crossboarder trade, and economic exchanges, and lucrative market links among the six GMS nations. The U.S. is currently among the leading economic "stakeholders" in the GMS. Continued refusal to grant NTR to Laos is detrimental to the current and long-term U.S. national interest in this dynamic and fast-growing region. The significance of Laos to the U.S. regional economic and security interests must be viewed in this broader ASEAN and GMS context. It is in the light of these broader U.S.-ASEAN regional economic and security interests that I urge your esteemed Committee to recommend the granting of the much overdue US-NTR to Laos. Sincerely yours, Puongpun Sananikone President and CEO, PacMar Inc.. (address: 3615 Harding Avenue, Suites 408-409, Honolulu, HI 96816. Tel: 808-7328731) Attachment: Statement of Support From Laotian-Americans in Hawaii For The Bush Administration's Trade Initiative To extend Normal Trade Relations to Laos We, Laotian-Americans in Hawaii, believe that: Widespread and rapidly growing unemployment among youth in Laos has driven tens of thousands of them to flee to Thailand and other neighboring countries where they fall prey to exploitative and inhumane treatment by their employers and criminals; while the land-locked Laotian economy continues to weaken due to decline in foreign investment and its weak capability to compete with its neighbors in the export markets. The situation is further aggravated by the continued denial of US NTR to Laos while such privilege is enjoyed by its stronger immediate neighbors, including Vietnam and Cambodia. US NTR for Laos is not a panacea for its social economic problems, but it will put Laos on a level playing field with its neighboring countries on which to compete for a share of the U.S. markets. This in turn will stimulate domestic and foreign investment in Laos and give the country a fair chance to provide decent jobs for its youth and thereby help reverse the current ill treatment and suffering they have had to endure, both in Laos and in neighboring countries. We realize that Laotian communities across the U.S. are not unanimous in their views about the current Laotian Government and its policies, and that the majority of Laotian Americans still wish to see more political reforms and changes. But we believe that a stronger Laotian economy will improve living conditions of the Laotian people who, in turn, will then become real stakeholders and, eventually catalysts for change. Experience in Asia has amply demonstrated that the democratization process has been economically driven. While understanding and respecting the views of those opposing the granting of US NTR for Laos, we ask that they also understand and respect our views and positions on this important matter. As American citizens, we have the obligation to respect each other's rights and freedom to express our views in accordance with our belief and conscience. The majority of Laotian Americans have reconnected with their homeland. Most of them have returned to Laos for visits and have relatives who are still there and wish to see that they be given a fair chance for a better living. Most Laotian Americans believe that promoting economic development is the best way to promote peaceful and sustainable change in Laos. We wholeheartedly applaud and share the position taken by the Bush Administration on the issue of US NTR for Laos. Ambassador Hartwick is trying to encourage discussion and favorable consideration of this initiative. Laotian Americans and friends of the Laotians who share our views should exercise their right of freedom of speech by voicing their views to their respective Congressional representatives, especially members of the House Ways and Means Committee. The opposition to the US NTR to date seeks to isolate and impoverish Laos for their own ambiguous political agenda. They have organized and financed aggressive lobby efforts to prevent hearings on this matter. Some of them continue to believe that poverty will force change in Laos. Recent history in Asia shows otherwise. People in isolated and poor North Korea have no means to ask for change, they starve in silence; while in relatively rich South Korea and other parts of Asia (Thailand, Taiwan, Malaysia, Philippines etc.) growing affluence of the peoples have created economically strong and well educated middle class who in turn have proven to be the real incubators and guardians of the growing democratization process. A constructive engagement approach is a better alternative for the U.S. to promote change in Laos; and that promoting change through peaceful socio-economic development is far more effective and humane than deliberate impoverishment of our fellow Laotians in Laos. The granting of NTR to Laos will open up U.S. market to tens of thousands of Laotian entrepreneurs and workers. This will ultimately lead to greater economic empowerment of Laotians, making them stakeholders in their own society and, thereby, creating genuine impetus towards democratization and the rule of law. For more information and assistance, please contact: The US-Lao NTR Coalition; 120 Broadway, Suite 4; Richmond, CA 94804; (510) 235-5005, (510) 235-5065; Website: Laotianlink.com; Email: Laotianlink@USA.com Hawaii Contact: Email: puongpun@pacmarinc.com; telephone: 808-735-2602, 732-8731; fax: 808-734-2315; Mail: 3615 Harding Avenue, Suites 408-409, Honolulu, HI 96816 |