Over 96% of Vietnam National Assembly deputies voted yes to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) on 12 November, 2018, making Vietnam the 7th nation to ratify this agreement.
The members of the CPTPP are ew Zealand, Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, Peru, Singapore, and Viet Nam. Vietnam’s total trade turnover with CPTPP member states is in excess of USD 67 billion USD, accounting for 15.8% of its total trade value.
The CPTPP removes around 90% of trade barriers. The signatories have also agreed on provisions regarding intellectual property protection, e-commerce regulation, investment protection and investor-state dispute settlements.
The reduction of tariffs and non-tariff barriers will boost the its strong base of exports of cellphones, garments, shoes, seafood, and agricultural products. Furthermore, Vietnam will become a more attractive location for manufacturing since tariffs are on the rise between the United States and China. A government study estimated a boost of 1.3% for Vietnam’s GDP, while exports are expected to increase by 4% by 2035.
With the ratification of Vietnam, after New Zealand, Canada, Japan, Mexico, Singapore and Australia, CPTPP will come into effect on December 30, 2018 for these countries. The agreement will enter into force for Vietnam 60 days after Vietnam officially notifies New Zealand, the official depository, in writing of the ratification. The same 60 day period for entry into effect will apply for the remaining 4 members, following each nation's respective ratification.
(Sources: Vietnam Plus; Nhan Dan)