CPTPP officially takes effect, Vietnam will cut taxes with 11 member countries
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) officially took effect on December 30, 2018.
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| Minister of Trade and Industry Tran Tuan Anh (right) and representatives of 10 countries participating in the signing ceremony of the CPTPP Agreement pose for a group photo at the conference in Santiago on March 8. AFP/ VNA. |
On December 30, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the US-free version of the Trans-Pacific Partnership (TPP), officially took effect, creating a free trade area.
The CPTPP will cut tariffs on agricultural and industrial products, ease investment rules and strengthen intellectual property protection.
Australia, Canada, Japan, Mexico, New Zealand and Singapore are the first six countries to ratify the CPTPP, paving the way for the agreement to enter into force. The agreement will take effect in Vietnam from January 2019.
The CPTPP's content remains almost the same as the TPP, although 22 provisions have been postponed, mainly related to intellectual property, to ensure balance among the 11 member countries.
The successful negotiation of the CPTPP after the US withdrawal from the TPP is important in maintaining investment connectivity and freer trade in the Asia-Pacific region in the context of increasing trade protectionism.
With 11 participating countries, including Vietnam, CPTPP is one of the world's largest trade agreements and, when fully implemented, will cover a market of nearly 500 million consumers, accounting for about 13.5% of global GDP.
For Vietnam, at the 6th Session, the 14th National Assembly officially ratified the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Vietnam's early ratification of the CPTPP demonstrates its strong commitment to innovation and comprehensive, deep international integration; affirms Vietnam's important geopolitical role and position in Southeast Asia as well as the Asia-Pacific region, truly enhancing Vietnam's position in ASEAN, in the region as well as in the international arena.
Joining the CPTPP opens up great opportunities for Vietnam to connect with major economies in the world, promoting trade and investment. According to calculations, the CPTPP can help Vietnam's GDP and exports increase by 1.32% and 4.04% respectively by 2035. Total import turnover can increase by 3.8%, lower than the export growth rate, so the overall impact on the trade balance is favorable. However, Vietnamese enterprises will also face very high competitive pressure in this CPTPP "game".
