After Vietnam signed Agreement in principles for its WTO entry on May 13, Senator Max Baucus of the US informed to support Vietnam with Permanent Normal Trade Relation (PNTR) status in August this year.
Awarding of PNTR will result into withdrawing of all trade barriers, including exports quota.
Washington DC based US National Council of Textile Organizations (NCTO) has stated that signing agreements with relation to textile and garment sector within the Agreement in principles is a 'victory for Vietnam'.
NCTO informed that Vietnamese textile and garment goods would no longer have to bear export quota regulation since Vietnam officially enters WTO, provided that it commits to stop specific subsidy for the sector.
Vietnam will have 5 years to carry out its commitments, NCTO added.
Vietnam's failure to fulfill its commitments would prompt the US to reallocate exports quota with the help of international arbitrator or solved under WTO regulations.
www.fibre2fashion news desk-Vietnam