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Fri, Dec 05, 2003

United States, Vietnam Sign Historic Air Services Agreement

First (Ever) Such Agreement Between the Two Countries

As part of the continuing effort to strengthen US-Vietnam relations, ease travel and expand trade between the two countries, US Transportation Secretary Norman Y. Mineta and Vietnamese Transport Minister Dao Dinh Binh today signed the first-ever comprehensive US-Vietnam air services agreement.

"Since our two countries signed a bilateral trade agreement late last year, our economic ties have become stronger," said Secretary Mineta. "Last year, the United States and Vietnam engaged in almost $3 billion in direct trade. Today's agreement solidifies that partnership and lays the groundwork for even greater growth and success in our economic relationship."

The Secretary added that the agreement also will make it easier to travel between the two countries, helping to reunite families and further strengthening human ties between the two nations.

Today's historic agreement allows the airlines of both countries to provide US-Vietnam air service with their own aircraft as well as unlimited code sharing. It contains some restrictions on air services, and will remain in effect for five years. The two sides agreed to meet within four years to consider a further expansion of air service opportunities, at which time the United States will seek a fully liberalized Open-Skies agreement.

The agreement's text was initialed on Oct. 9 after several rounds of discussions. The two sides had first expressed interest in concluding an air transport agreement shortly after the lifting of the US economic embargo on Vietnam in 1994.

Vietnam's Deputy Prime Minister Vu Khoan, Vietnamese Ambassador to the United States Nguyen Tam Chien, US Ambassador to Vietnam Raymond Burghardt and US industry representatives also attended today's ceremony in Washington, DC.

FMI: www.dot.gov

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