WASHINGTON. July 6: After four years of on-and-off negotiations, a historic trade agreement between former enemies Vietnam and the United States may finally be within reach, reports Reuters.

US trade representative Charlene Barshefsky was meant to meet Vietnam’s Trade Minister Vu Khoan on Thursday and Friday in hopes of completing the long-stalled act. which would reduce tariffs on goods and services, protect intellectual property and improve Investment relations between the two countries.

US officials would not discuss the final sticking points and warned Hanoi against backing away from the market opening commitments it made last year before negotiations fell apart.

US business leaders were cautiously optimistic about the

Barshefsky-Khoan meeting, following talks on Monday and Wednesday at the expert level.

Vietnam desperately needs an economic boost, which a trade pact with the United States could provide. An agreement would also benefit US companies like shoemaker Nike Inc and agribusiness giant Cargill Ltd., and cement. President Bill Clinton's free-trade record following last year's landmark deal with China.

"There are a number of Issues which they (the Vietnamese) want to explore with us in order to bring this to finality," said Deputy US Trade Representative Richard Fisher, who will take part in the Washington talks.

But he warned: "There won't be a wholesale renegotiation of the agreement and they know that."

This Is not the first time Washington and Hanoi, com-

batants In the Vietnam War that ended in 1975, have been on the verge of a market-open-ing agreenient. ■ Juw ju. id

Washington announced an "agreement in principle" in July 1999, only to have Hanoi back away, arguing that certain provisions were unfair

Analysts believe communist Vietnam balked in part because It feared the loss of economic control that would come with market opening. The delay darkened the mood among investors. fed up with Vietnam's closed economy and high costs.

But US officials and "business leaders say Vietnam now appeared ready to move forward. emboldened in part by US House approval of a trade agreement with China. Beijing is expected to Join the World Trade Organisation later this year, and Vietnam has similar aspirations.