Chevy Chase, Maryland 20815 Providence, Rhode Island 02818 April 21, 2003 Honorable Philip M. Crane Subcommittee on Trade RE: US-Laos Trade Dear Chairman Crane, Please submit the US-Laos Bilateral Trade Agreement to the 108th Congress for prompt consideration and passage. Both the United States and Laos will substantially benefit from the normal trade relations (NTR) establishment. At the moment, there is no rational justification why the current high trade barriers between Laos and US should subsist. Laos is the only country in Southeast Asia without normal trade relations (NTR) with the US. Other countries in the world without NTR are Afghanistan, Cuba, North Korea, and Yugoslavia, none of which has normal diplomatic relations with the US. And despite interruptions of disengaged relations in the past, Cambodia and Vietnam have been granted NTR. On the other hand, the US and Laos has continued diplomatic relationship since 1975 with no interruptions. Furthermore, the Lao government is cooperating fully on the search for MIA remains from the Vietnam War and a campaign to eradicate narcotics production and trade in northern Laos. Moreover, the US currently funds about $10 million per year in MIA recovery, clearance of and education about unexploded ordnance (UXO), and counter-narcotics programs in Laos. The Lao government has extended efforts to help the international community to control HIV-AIDS and trafficking of women and children from Laos to neighboring countries. Meanwhile, Congress has appropriated funds to assist Laos with its healthcare and economic development, including a silk-production project. Without NTR for Laos, there are also some welfare loss for American consumers: Lao products are simply not competitive enough to enter the US market, and/or American consumers end up paying much higher for Lao imports. As American consumers, we would like to purchase Lao products (e.g., silk, wood, and food products) and to purchase them at the lower internationally competitive price. So please grant NTR to Laos. Equally important, most economic development and international trade economists have published papers citing evidence of how increase in trade promotes economic growth, especially for an under-developed country such as Laos (see, e.g., Frankel J.A. and D. Romer, 1999. "Does Trade Cause Growth?" American Economic Review 89:3, 379-399). Economic growth increases income for the Lao people (one of the poorest group of people in the world), enabling them to increase their standard of living, to pursue higher education, and to work towards a democratic society. The US-Laos NTR will give the people of Laos a means to not only improve their economic status, but it will give them a voice to endeavor for their rights. Hence, the US-Laos NTR is essential for the economic, social, and political development and stability of Laos and her people. Laos cannot simply be left isolated; NTR will integrate her into the international community with respect to not only trade/economic relations but with respect to social, political, and human rights improvement. Restructuring Laos' economy to fit the international standards by granting her NTR will inadvertently put more pressure on Laos to further open up economically, socially, and politically. Thus, we ask that you please submit the US-Laos Bilateral Trade Agreement to the 108th Congress for prompt consideration and passage. Thank you very much. With hope for the passage of US-Laos NTR, Souphala Chomsisengphet, Ph.D., Economist Sumit Agarwal, Ph.D., Commisssion on Security and Cooperation in Europe April 21, 2003 The Honorable Philip M. Crane Chairman, Subcommittee on Trade Committee on Ways and Means 1104 Longworth House Office Building Washington, DC 20515 Dear Mr. Chairman: Thank you for offering us the opportunity to submit comments to the subcommittee regarding the extension of normal trade relations to the Republic of Armenia. In our view, Armenia is in compliance with the freedom of emigration requirements under the Jackson-Vanik Amendment of the Trade Act of 1974, as it applies to the successor states of the Soviet Union. However, the underlying intent of the Jackson-Vanik language is to foster democratization and protect human rights. As NTR is being deliberated, there must be a clear message that further political reforms are expected in Armenia, which committed itself to specific democratic principles when it joined OSCE over a decade ago. As members of the U.S. Commission on Security and Cooperation in Europe, we wish to raise some specific concerns. The conduct of the February-March presidential election was quite disappointing, perpetuating a pattern we hoped had ended. Unfortunately, as in previous elections, domestic opposition parties have rejected the official tallies and the OSCE characterized the election as not having met international standards. Particularly disturbing was the statement by Defense Minister [and President Kocharian's campaign manager] Serzh Sarkissian: "People who have grown up and lived in Europe cannot understand our mentality. They have their rules and views on democracy, and we have ours." It is essential for Armenia's democratic prospects and the overcoming of polarization in society that the upcoming May 25 parliamentary election demonstrate significant improvements. In addition, Jehovah's Witnesses continue to be imprisoned as conscientious objectors, despite the government's pledge to the Council of Europe to adopt within three years a law allowing for alternative service and, in the meantime, to free all conscientious objectors from prison. Since the beginning of this year, seven Jehovah's Witnesses have received long prison sentences for refusing to perform compulsory military service, bringing the total number of Witnesses currently imprisoned to eighteen. We raise these concerns in the spirit of constructive engagement with Armenia. Sincerely, Benjamin L. Cardin Commission Member Christopher H. Smith Co-Chairman Commission on Security and Cooperation in Europe The Honorable Philip M. Crane Committee on Ways and Means 1104 Longworth House Office Building Washington, DC 20515 Dear Mr. Chairman: Thank you for offering us the opportunity to submit comments to the subcommittee regarding the extension of normal trade relations to the Republic of Moldova. As members of the U.S. Commission on Security and Cooperation in Europe, we wish to raise some specific areas of concern. In keeping with the spirit of the Jackson-Vanik Amendment of the Trade Act of 1974 which is meant to protect and promote human rights, we believe the United States must continue to make human rights a key component of the bilateral relationship with Moldova. With respect to the freedom of emigration requirements under Jackson-Vanik, Moldova has adopted statutory and administrative procedures that generally accord its citizens the right to depart and return to the country freely. However, the Moldovan Government should be encouraged to amend their law which maintains certain restrictions for potential emigrants upon whom close relatives are materially dependent. Moldova continues to be a major source country for trafficked women to Europe. The Moldovan Government, concerned NGOs and international organizations are working to eradicate this plague, but such efforts must be vigorously pursued and be given a very high priority. In addition, a proposed draft law on "freedom of speech and religious organizations" would limit religious freedom for minority faith communities in Moldova by denying registration unless a burdensome threshold concerning the length of time in existence and the number of participants in the religious group is met. Finally, we note recent reports prepared by the European Roma Rights Center concerning discriminatory policies and practices by Moldovan authorities toward the Romani minority. The Moldovan Government should be encouraged to ensure that all its citizens are treated equally before the law. Mr. Chairman, we appreciate the opportunity to raise these issues with you and request that these comments be taken into consideration, as well as additional progress by Moldova on these issues, as you consider the extension of normal trade relations to the Republic of Moldova. With best wishes, we remain Benjamin L. Cardin Commission Member Christopher H. Smith Co-Chairman Concern Worldwide Vientiane, Lao PDR 21 April 2003 Ways and Means Committee To whom it may concern, PERSONAL STATEMENT ON THE EXTENSION OF NTR TO THE LAO PDR FROM STUART HIGHTON, COUNTRY DIRECTOR, CONCERN LAOS I have been living and working in the Lao PDR over the past 4 years in the capacity of Country Director of Concern Worldwide, an Irish Non Governmental Organisation (NGO). I would like to add my voice to those calling for the extension of permanent Normal Trade Relations status to the Lao PDR. Concern's mandate throughout the world is to work with and for the benefit of the poorest-and in Laos that often means with ethnic minorities. Over the last ten years Concern has worked freely and unhindered (in partnership with local authorities) carrying out community development work with ethnic minority communities including H'mong, Mien, Khmou, Lamet and Katang peoples in five different provinces. Although we have some concerns regarding certain government strategies affecting ethnic minorities-for example those associated with efforts to stabilise slash and burn cultivation or to eliminate opium production-because of the impact these strategies may have on fragile livelihoods, in my experience there is certainly no systematic repression of ethnic minorities. Indeed ethnic minorities are represented in all levels of government, and I would contend that compared to some other countries in the region, which do have NTR status, minorities in the Lao PDR are treated well. My personal experience is that the Lao government has opened up considerably in its relations with the development community during the last four years and now welcomes representatives of civil society from other countries (such as Concern) to work with all the multi-ethnic peoples of Laos, and contribute to the genuine poverty alleviation efforts of the government. As a result of the increasing economic openness of the government, the country's economy is gradually becoming more dynamic and market oriented. Small producers, particularly of ethnic minority handicrafts, are improving the quality of their work; some of them with the assistance of international NGOs such as Concern. What these poor people need and deserve is a level playing field to compete with their neighbours in marketing their produce. It is my personal sincere belief that by opening up trade between the USA`and_the Lao PDR through granting NTR to Laos, Congress would be removing an anachronistic impediment to the development of the Lao people of all ethnicity, and would be contributing significantly to the poverty reduction efforts of the Lao government and their development partners here in the country. I would urge you to do so. Yours sincerely, Stuart Highton San Diego, California 92105 To: Honorable Charles Grassley, Chairman, Committee on Finance, United States Senate. Honorable William M. Thomas, Chairman, Committee on _Ways and Means. Honorable Philip M. Crane, Chairman, Subcommittee on Trade of Ways and Means Committee, E-mail: hearingclerks.waysandmeans@mail.house.gov Fax: (202) 225-2610 Honorable: This letter is to strongly support of granting normal trade relations status (NTR) to Laos. Laos is the only country in Southeast Asia that has not got NTR. Currently, US have a very small business establishment in Laos, comparing to China, Thailand, and Japan. Laos has established itself to become an important market for US goods and services when it joined the Association of Southeast Asia Nations (ASEAN) in 1997. The United States Government should help American companies grab a bigger share of this market by granting NTR status. The Lao government is sincerely cooperate with the United States in the fields of POW/MIA, narcotics control and supports the United States and the World community to fight against the international terrorism. Therefore, granting NTR status will demonstrate that the United States is also committed. I appreciate very much a joint proposal of Honorable Colin Powell, Secretary of State and Honorable Robert Zoellick of the USTR, for granting NTR to Laos. Your Honorable kind support the proposal and help granting NTR to Laos will be highly appreciated. Sincerely, Jack Congsa Rep. Philip M. Crane Chairman Subcommittee on Trade, Consortium of World Education and World Learning House Ways and Means Committee Washington, DC 20515 Dear Rep. Crane: On behalf of the Consortium of World Education and World Learning, I commend you and the members of the Ways and Means Committee for your decision to move ahead with legislation establishing normal trade relations with the Lao People's Democratic Republic (Lao PDR). This is a process that we wholeheartedly support. World Education is a not-for-profit organization based in Boston. World Learning is a not-for-profit organization based in Washington. The Consortium has worked in Laos since 1992, first assisting Lao refugees returning to Laos from refugee camps in Thailand and now assisting in the areas of health, vocational training, education, agriculture, and economic development. The Consortium implements these programs in seven different provinces, Huaphan, Xieng Khouang, Vientiane, Sayabouli, Luang Prabang, Savannakhet, and Salavane. The Consortium staff works and lives in both the provincial capitals and in the rural areas. The Consortium strongly supports the decision to establish normal trade relations with the Lao PDR. It is long overdue. Laos is one of the poorest countries in Asia. The people who would benefit from the US funded programs that the Consortium implements would also benefit from the establishment of normal trade relations. One program in particular, the USAID-funded Lao Economic Acceleration Program in the Silk Sector (LEAPSS), requires the availability of an open international mar ket in order to succeed. The farmers, weavers, and merchants involved in this program need the normal trade relations in order to export their handicrafts. Other direct beneficiaries of normal trade will be Laotians in the private sector and American investors, who will be able to export not only Laotian handicrafts, foodstuffs and other products directly to the United States without going through a third country or paying prohibitive duty. Laotian-Americans, who know Laotian cultures and languages and have family and friends in the country, will have particularly strong opportunities. Normal trade relations with the Lao PDR will not cost American taxpayers a cent, since the decline in tariff rates will be more than offset by an increase in the volume of trade. Legitimate human rights concerns, including access to health care and education, and protection from risk of unexploded wartime bombs, as well as civil and political liberties should and do form a part of US policy towards the Lao PDR, as with other countries. However, ongoing human rights issues do not prevent the United States from engaging in normal trade with other countries in ASEAN or elsewhere in the world that pose no threat to US interests. There is no logical basis for arguing that denying freedom to trade improves human rights. What will lead to improvements is a policy of engagement and respect towards the Lao PDR that enables the US to play a positive role. Some of the possibilities in this approach have already been demonstrated in the areas of development cooperation and religious freedom. Since his arrival in Vientiane in 2001, Ambassador Douglas Hartwick has sought, fairly and honestly, to resolve problems and increase communication in US-Lao PDR relations. His broad-minded diplomacy in US national interests deserves your encouragement. By approving NTR, the Congress will send a signal that the United States supports reformers and internationalists in the Lao PDR government, and that it is committed to ensuring the continuity and success of the domestic reform process. If you have any questions regarding the Consortium programs in Laos or would like a further comment on any of the above please do not hesitate to contact me at 802-254-8611. Sincerely yours, Connie Woodberry Senior Program Officer of World Education Director of the Consortium [BY PERMISSION OF THE CHAIRMAN:] Council of Lao Representatives Abroad-Oceanic Region The Council of Lao Representatives Abroad (Oceanic)-Laos Reforms 2003 Report Submission to US Congressional Forum Washington D.C. The Council of Lao Representatives Abroad (Oceanic) hereby formally submits this report to be tabled at the US Congressional Forum in Washington DC on the 21st of April 2003. Concurrently, we submit this report to other international bodies that have an expressed interest in the ongoing development of issues relevant not only to Laos but to the region as a whole. The issues include, but are not limited to; foreign investment, legal governance, foreign aid, human rights and religious freedoms. The first important statement that the Council of Lao Representatives Abroad wishes to make clear is its desire to promote open dialogue between itself, the Lao Government and the international community in an effort to bring forth constructive debate with an aim of identifying positive solutions to current issues of concern. The second important statement that the Council of Lao Representatives Abroad wishes to make clear is its desire to see the proper implementation of the articles of the Laos constitution as adopted by the 6th Session of the People's Supreme Assembly (2nd Legislature) Vientiane, 13—15 August 1991. The constitution sets out clear guidelines by which the country should be governed in order to fulfil the objec |