Laos hopes to
attain normal trade relation (NTR) with the US. This NTR was applied
for around summer/fall 2003 shortly after a bilateral trade agreement
(BTA) was signed/finalized. Companies in Laos are extremely eager
to see Laos gain NTR status because the main effect of this is the
reduction of tariffs on Lao goods which is as high as 70% on some
goods. Whereas, comparatively, countries who have NTR with the US
only have tariffs of 2-5% on most goods.
Canada, like
some EU countries, have a scheme whereby they attempt to encourage
their own countries to import from third world countries, such as
Laos, in order to help those countries and their industries. The
setup is generally the waivering of import tariffs completely or
lowering them. The US used to have such a program where it would
select a country to have "most favored nation" (MFN) status
to encourage trade. The US has removed the title of this status
or program - it has turned to calling it normal trade relations.
Trade agreements between
Laos and USA are met with both supporters and non-supporters. Even
within American Lao communities there is division of whether or
not the US should bother having any economic relationship with Laos.
However this division
and the lobbying of both sides to the US Congress and the President
is in part why the decision to have economic relations and granting
NTR status is taking quite long.
