[Weekly Compilation of Presidential Documents Volume 42, Number 45 (Monday, November 13, 2006)]
[Pages 2022-2023]
[Online from the Government Printing Office, www.gpo.gov]

<R04>
Memorandum on Determinations Under Section 1106(a) of the Omnibus Trade 
and Competitiveness Act of 1988--Socialist Republic of Vietnam

November 6, 2006

Memorandum for the United States Trade Representative

Subject: Determinations under Section 1106(a) of the Omnibus Trade and 
Competitiveness Act of 1988--Socialist Republic of Vietnam

    Consistent with section 1006(a) of the Omnibus Trade and 
Competitiveness Act of 1988 (19 U.S.C. 2905(a)) (the ``Act''), I 
determine that state trading enterprises account for a significant share 
of the exports of the Socialist Republic of Vietnam (Vietnam) and goods 
that compete with imports into Vietnam. I further determine that such 
state trading enterprises unduly burden and restrict, or adversely 
affect, the foreign trade of the United States or the United States 
economy, or are likely to result in such burden, restriction, or effect.
    Vietnam is seeking to become a member of the World Trade 
Organization (WTO). The terms and conditions for Vietnam's accession to 
the WTO include Vietnam's commitments that it will ensure that all state 
trading enterprises within the meaning of section 1106 will make 
purchases not for governmental use and sales in international trade 
based solely on commercial considerations (including price, quality, 
availability, marketability, and transportation) and that U.S. firms 
will have an adequate opportunity, in accordance with customary business 
practice, to compete for participation in sales to and purchases from 
these enterprises on nondiscriminatory terms and conditions. In 
addition, the Government of Vietnam will not influence, directly or 
indirectly, commercial

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decisions on the part of state trading enterprises, including decisions 
on the quantity, value, or country of origin of any goods purchased or 
sold, except in a manner consistent with the Marrakesh Agreement 
Establishing the World Trade Organization (WTO Agreement) and the rights 
accorded to nongovernmental enterprise owners or shareholders.
    The obligations that Vietnam will assume under the WTO Agreement, 
including Vietnam's protocol of accession, meet the requirements of 
section 1106(b)(2)(A) of the Act (19 U.S.C. 2905(b)(2)(A)), and thus my 
determinations under section 1106(a) do not require invocation of the 
nonapplication provisions of the WTO Agreement.
    You are directed to publish this memorandum in the Federal Register.
                                                George W. Bush

 [Filed with the Office of the Federal Register, 8:45 a.m., November 9, 
2006]

Note: This memorandum was released by the Office of the Press Secretary 
on November 8, and it was published in the Federal Register on November 
13.