Signatories of the bilateral agreement on Vietnam’s accession to the WTO were Vietnamese Deputy Minister of Trade Luong Van Tu and US Deputy Trade Representative, Ambassador Karan Bhatia.

The signing ceremony was witnessed by Vietnamese Deputy Prime Minister Vu Khoan and Vietnamese Minister of Trade Truong Dinh Tuyen, and US Trade Representative-designate, Ambassador Susan Schwab, and Assistant Trade Representative Dorothy Dwoskin.

The pact was reached after 12 rounds of bilateral negotiations between Vietnam and the US in Hanoi, Washington and Geneva. During the 12^th round in Washington from May 9-12, the two sides reached an agreement in principle on Vietnam’s accession to the WTO and subsequently continued discussions on technical issues.

Speaking at the signing ceremony, Trade Minister Tuyen said the agreement marked a milestone in the normalisation of relations between the two countries. He said that since Vietnam and the US normalised their relations in 1995, especially after the signing of the Bilateral Trade Agreement (BTA) in 2001, bilateral ties have seen a remarkable development, which was further consolidated after Prime Minister Phan Van Khai's visit to the US in 2005.

"On that basis, the two countries have made great efforts to boost the process of bilateral negotiations on Vietnam's WTO entry," said the minister.
He also stressed that three events in the coming Autumn, including Vietnam's WTO admission, US President George W. Bush's first visit to Vietnam and the APEC Economic Leaders' Summit, will be very important for both countries.

Meanwhile, Mr Bhatia said “This is a great agreement for the US as it opens a vibrant and growing market for American agricultural goods, a range of services, and manufactured products. It also opens the door for Vietnam to join the international rules-based trading system”.

Through this agreement, he said, Vietnam will become more transparent in its regulatory trade practices, enhance the economic freedoms enjoyed by its people, and establish a more level playing field between Vietnamese and foreign companies. 

"This truly is an historic step in the relationship between the two countries,” he noted, adding that the event marks the passing of another milestone on the road to the full normalisation of relations between the two countries.

Following the signing, Mr Bhatia said, “We will be seeking the approval of Congress for Permanent Normal Trade Relations (PNTR) status for Vietnam.  We believe there is strong bipartisan support for the PNTR and will continue to work closely with both parties in Congress in the hope of completing that process as soon as possible”.

As the largest economy in the world, the US is becoming an increasingly crucial investment and trading partner of Vietnam. By December 2005, the US was the 11^th biggest investor in Vietnam with 265 projects valued at US$1.45 billion. Two-way trade value in 2005 amounted to nearly US$7 billion.

The US is the last to conclude negotiations among the 28 WTO members requesting bilateral negotiations with Vietnam.