Asia Business Channel

Vietnam ratifies Asia-Pacific trade pact

Vietnam has officially become the seventh country to ratify the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). With ratification, the National Assembly (NA) has assigned the task of reviewing related bills and legal enactments to the Government, the Supreme People’s Court, the Supreme People’s Procuracy and other relevant bodies.

Once reviewed, government agencies will request that authorities amend, supplement or enact new laws in a timely manner that ensures adherence and uniformity to the roadmap and timelines for implementing commitments that are contained in the CPTPP.

The CPTPP is a major trade pact between Vietnam and 10 other countries that seeks to boost trade by reducing tariffs. The Prime Minister will be responsible for approving and directing central and local agencies in implementing the CPTPP agreement.

Deputy Prime Minister Pham Binh Minh, speaking at a recent session of the National Assembly said that the CPTPP "will benefit Vietnam overall." Citing a report by the Ministry of Planning and Investment. The Deputy PM said that the trade pact will cover 13.5% of global GDP, and that the agreement will help Vietnam’s GDP to grow an additional 1.32% and exports 4.04% by 2035

He also said that Vietnam would face real challenges when joining the CPTPP. Domestic products such as chicken and pork and rice are expected to face strong competition from imported products. Other products that will have trouble competing include cars, paper and steel.

The six countries that have already ratified the CPTPP pact are Australia, Canada, Japan, Mexico, New Zealand and Singapore. The four countries that are still in the process of ratifying the CPTPP agreement are Brunei, Chile, Malaysia and Peru.

The CPTPP agreement was originally envisioned as a 12-country agreement known as the Trans-Pacific Partnership (TPP) that was negotiated during the administration of US President, Barrack Obama. The status of the CPTPP was in question when U.S. President Donald Trump withdrew the United States from the deal in January 2017. Following the U.S. withdrawal, the remaining 11 countries renegotiated parts of the TPP, removing some of Washington’s demands. In March, they officially signed the revised CPTPP, also known as TPP-11 and governments have been ratifying the agreement since then.

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