Statement for the Record for the House Committee on Ways and Means by Peru RPCV John McAuliff, Executive Director of the Fund for Reconciliation and Development, on decision to move ahead with legislation establishing normal trade relations with the Lao People’s Democratic Republic
House Committee on Ways and Means
Fund for Reconciliation and Development
New York, New York 10018
April 17, 2003
Rep. Philip M. Crane
Chairman
Subcommittee on Trade, House Ways and Means Committee
Washington, DC 20515
Dear Rep. Crane:
The Fund for Reconciliation and Development commends 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.
The Fund is a not-for-profit organization based in New York that has worked for normal economic, diplomatic, educational and cultural relations with Cambodia, Laos and Vietnam since 1985. We support normal trade relations as a necessary step in the process of reconciliation and rebuilding following the tragic conflicts in Indochina and an important aspect of the domestic economic and legal reform process of these countries.
Thirty years after the end of US involvement in the “secret war,” Laos remains one of the poorest countries in Asia. One of the reasons for this has been the persistence of de facto trade sanctions imposed by the United States. The time is ripe for Congress to act to remove these discriminatory tariff barriers, which form one of the last remaining policy legacies of the war.
In June 2001, we held an international conference on development assistance Improving Partnerships for Poverty Alleviation and Development in Vientiane, the capital of the Lao PDR, that was attended by over 600 representatives of government, business, and non-profit development institutions, including more than 300 Laotians. From this experience, frequent visits to Laos, and a longstanding acquaintance with the Lao PDR embassy in Washington and the United Nations mission in New York, we are convinced that the Laotian people and their leaders desire improved ties, including trade, with the United States, and that they welcome American assistance and expertise in reforming their economy and reducing poverty.
We have seen how NTR status with Cambodia (1996) and Vietnam (2001) has led to exponential increases in two-way trade. While every country is different, the normalization experience that we have witnessed in Cambodia and Vietnam indicates that the potential for US-Laotian trade is many times higher than its current meager level of around $8 million per year. Equally significant have been the corresponding developments in other areas of bilateral relations, including people-to-people exchange and tourism.
The direct beneficiaries of normal trade will be Laotians in the private sector and American investors, who will be able to export 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.
Sincerely yours,
John McAuliff
Executive Director
Fund for Reconciliation and Development
