Vietnam ratifies Asia-Pacific trade pact
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Vietnam became the seventh country to ratify the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) Monday afternoon. With its 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, the government agencies shall request that competent authorities amend, supplement or enact new laws in a timely manner to ensure uniformity and adherence to the roadmap for implementing commitments contained in the CPTPP.
The Prime Minister will be responsible for approving and directing the relevant central or local agencies in implementing the CPTPP pact.
The CPTPP is a major trade pact between Vietnam and 10 other countries that seeks to boost trade by reducing tariffs.
Speaking at a recent NA session, Deputy Prime Minister Pham Binh Minh said that the CPTPP “will benefit Vietnam overall.”
Because the trade pact will cover 13.5 percent of global GDP, Vietnam’s GDP will be able to grow by 1.32 percent, and its exports 4.04 percent by 2035, he added, citing a report by the Ministry of Planning and Investment.
However, the Deputy PM also enumerated challenges that Vietnam would face when joining the CPTPP.
Domestic products such as pork and chicken might face strong competition from imported products. Other products that can have trouble competing include paper, steel and cars, Minh said.
The other six countries to ratify the pact are Australia, New Zealand, Canada, Japan, Mexico and Singapore.
The four countries still to ratify it are Brunei, Chile, Malaysia and Peru.
Originally a 12-member agreement known as the Trans-Pacific Partnership (TPP), the pact was thrown into limbo when U.S. President Donald Trump withdrew his country 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 signed the revised CPTPP, also known as TPP-11.
Questions & Answers
Q.Which government bodies are responsible for reviewing laws related to the CPTPP in Vietnam?
Which government bodies are responsible for reviewing laws related to the CPTPP in Vietnam?
The National Assembly 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.
Q.Which Vietnamese products are expected to face strong competition under the new trade pact?
Which Vietnamese products are expected to face strong competition under the new trade pact?
Domestic products such as pork and chicken might face strong competition from imported products. Other products that could have trouble competing include paper, steel, and cars, according to the Deputy Prime Minister.
Q.What percentage of global GDP does the CPTPP trade pact cover?
What percentage of global GDP does the CPTPP trade pact cover?
The CPTPP trade pact covers 13.5 percent of global GDP. This is cited as a reason for Vietnam's projected GDP growth of 1.32 percent and export growth of 4.04 percent by 2035.
Q.Which countries are still yet to ratify the CPTPP agreement?
Which countries are still yet to ratify the CPTPP agreement?
The four countries still needing to ratify the CPTPP are Brunei, Chile, Malaysia, and Peru. Vietnam has become the seventh country to complete its ratification of the agreement.