Washington, Nov 12, 2006 -

House Resolution 5602, a bill to allow Permanent National Trade Relations (PNTR) with Vietnam was defeated this evening on the House floor after opposition, led by Congressman Dennis J. Kucinich (D-OH), pointed out the bill would be bad for both Vietnam and US workers. Kucinich, was one the only Member to speak out against the legislation. It was his call for a roll call vote that lead to the defeat of the bill.

The bill, brought to the House floor under a special rule requiring two-thirds for passage, was defeated 228-161. Kucinich was the only Member of Congress to speak out against the legislation. Mindful that most Members had not yet returned to Washington, Republican leaders scheduled the debate early in the day.  But Kucinich was there to object. 

Kucinich, the only Member to speak in opposition to the legislation, gave the following floor speech on the House floor:

“Mr. Speaker, I rise in opposition to HR 5602.  Opposing PNTR for Vietnam is in the interests of Vietnamese and American people.

“As you know, Vietnam has been subject to a trade agreement with the United States since 2001.  How has it gone?

“If you care about Vietnam, then you should care to know that Vietnam has a lot to lose, as poor as that country may be.  Vietnam had a growth rate of 9% between 1993 and 1997, the year the Asian Financial Crisis hit.  In other words, under the Socialist Republic of Vietnam, economic growth was very respectable.  But the global experience of developing countries with WTO-rules is disappointing at best.  During the WTO decade (1995 to 2005), the number and percentage of people living on less $2 a day has jumped in South Asia, Sub-Saharan Africa, Latin America, the Middle East and Caribbean. The rate of worldwide poverty reduction has slowed.  Per-capita income growth in poor nations declines when they sign up to for the WTO, and structural adjustment policies by the IMF and World Bank.   Per capita growth from 1980-2000 fell to half of what occurred between 1960-80 1980 prior to imposition of the WTO-IMF package.  I worry about the Vietnamese people if PNTR should pass.

“If you care about Vietnam, then you should care to know that PNTR could have the effect of causing:
• Millions of peasants to be thrown off the land, as agricultural supports are withdrawn.
• Millions of workers to lose their jobs as state enterprises wither in the face of foreign competition, or downsize and speed up operations in an effort stay competitive.
• As a result of these and other factors, there will be a surge in income and wealth inequality, exacerbating dangerous trends already underway.
• Foreign tobacco companies to gain greater access to the Vietnamese market, which almost certainly means there will be a rise in smoking rates among women and children and may result in millions of excess tobacco -related deaths.

“If you care about jobs in the United States, then you should be concerned to learn that the U.S. balance of trade has gone from a surplus in 1993 to a deficit of over $5 billion.  As Chinese manufacturers move south to Vietnam in search of even cheaper labor, more and more exports will come from Vietnam to the United States, and more and more jobs in the United States will disappear.

“Haven’t we learned enough about the folly of the World Trade Organization?  Haven’t we lost enough good paying jobs?  Haven’t we learned that the U.S. cannot for long be the world’s biggest market and biggest consumer if our people are not making wealth through manufacturing? 

“What will have to happen for us to learn that we cannot sustain trade deficits for ever?

“One day, our Chinese, British, German, Canadian …And Vietnamese creditors will want a say in US economic policies, and that won’t be in the interests of U.S. workers.

“Vote No on HR 5602.”

###