Waiver Under The Trade Act Of 1974 With Respect to Vietnam

This executive order waives provisions of the Trade Act of 1974 (sections 402(a) and 402(b)) with respect to Vietnam, following a required congressional report. The waiver allows Vietnam to receive normal trade relations treatment (previously called most-favored-nation status) by removing the Jackson-Vanik amendment restrictions that had conditioned such status on freedom-of-emigration requirements.

Federal Register Open PDF 63 FR 17309

Key directives

Waive application of 19 U.S.C. 2432(a) and 2432(b) with respect to Vietnam
Report to Congress under section 402(c)(2) already completed prior to signing

Timeline

Immediate

Waiver takes effect upon signing; sections 402(a) and 402(b) no longer apply to Vietnam

Near term (90d)

Congressional review period under Trade Act procedures
Implementation by USTR and Commerce of normalized tariff schedules for Vietnam

Long term

Permanent shift in U.S.-Vietnam trade relations pending congressional action
Potential bilateral trade agreement negotiations
Gradual integration of Vietnam into WTO accession track

Risks & tensions

Congress retains authority to disapprove waiver via joint resolution under Trade Act procedures
Human rights groups may oppose waiver due to Vietnam's emigration and labor rights record
Text does not specify duration of waiver or conditions for renewal
Vague whether this is annual waiver or permanent; section 402(c)(2) typically requires annual presidential determination