The UK joining CPTPP will expand market access opportunities for Vietnamese goods

The UK joining the CPTPP Agreement will bring many economic benefits to Vietnam, helping to promote and attract more economies to join this regional FTA, expanding market access opportunities for Vietnamese goods. South, contributing to increasing Vietnam’s attractiveness in the eyes of foreign investors…

Continuing the program of the 7th Session, on the morning of June 8, 2024, the National Assembly heard the submission and verification report on the ratification of the Instrument of Accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) of the United Kingdom of Great Britain and Northern Ireland.

IMPACT OF UK JOINING CPTPP ON VIETNAM

Presenting the President’s report, Vice President Vo Thi Anh Xuan said that for Vietnam, the UK’s CPTPP Accession Document includes two main parts: Accession Protocol and Appendices; UK letters and bilateral letters between Vietnam and the UK.

The Protocol and its Annexes represent the UK’s market opening commitments in six areas, including: trade in goods, trade in services – investment, and temporary entry of business visitors. , government procurement, financial services and state-owned enterprises.

The Protocol also represents a number of legal-institutional commitments, thereby unifying specific chapters of the Agreement applicable to certain territories of the UK, and CPTPP members agree. accept an exception clause to the Northern Ireland Protocol.

According to the report, similar to the 10 CPTPP members, Vietnam continues to sign 5 bilateral letters with the UK in the fields of labor – unions, e-commerce, intellectual property and financial services. with the same content as previously signed letters.

In addition, Vietnam and the UK also signed bilateral letters on Government procurement, grace periods in intellectual property and investment licensing on the basis of ensuring reciprocity and balancing obligations between the two. beside.

In particular, the UK signed a letter to Vietnam confirming that industries operating in Vietnam are considered operating under market economy conditions. On that basis, the UK will not apply Article 14.1(b) of the country’s 2019 Trade Remedies Regulations to imported goods in Vietnam.

Assessing the impact of the UK joining CPTPP on Vietnam, the report states that, in terms of politics, national security and foreign strategy, from a bilateral perspective, Vietnam and the UK have bilateral FTA relationship. Therefore, the UK joining CPTPP will contribute to strengthening Vietnam’s role towards the UK in this region; contributing to enhancing Vietnam’s position in international economic cooperation and bilateral cooperation with the UK.

In particular, the UK’s recognition of Vietnam’s market economy status is also important, creating a basis for us to continue lobbying other countries, including the United States, to recognize Vietnam as a free economy. market economy.

From a multilateral perspective, the UK’s accession to CPTPP will contribute to connecting the Asia-Pacific region, the Americas with Europe, helping to elevate CPTPP from an agreement within the regional framework to an agreement. global, while contributing to the development of peace, stability and prosperity in the Asia-Pacific region.

Economically, the UK joining CPTPP will help promote and attract more economies to join this regional FTA, expanding market access opportunities for Vietnamese goods and contributing to increasing the attractiveness of Vietnam in the eyes of foreign investors.

The UK has always been one of the largest import markets in the world. The negotiation results that Vietnam has achieved will promote Vietnam’s trade and investment exchange activities with the UK, especially creating conditions for Vietnamese exports to access the market with a large annual import turnover.

Regarding labor, employment, and society, industries that the UK has strong export strengths such as machinery, high-tech equipment, financial services, and banking are not competitive but are complementary to strong industries. of Vietnam. Therefore, there will not be significant competition for jobs, on the other hand, it will also help develop the labor market and increase employment in corresponding fields in Vietnam.

Recognizing the challenges facing Vietnam, the Vice President stated that the UK is one of the most demanding markets in the world regarding domestically circulated goods standards. Therefore, Vietnamese goods exported to the UK market still face challenges in meeting domestic circulation standards.

Vietnam will also commit to opening its market to goods and services for the UK. This creates certain competitive pressure for our businesses, goods and services. However, this is healthy, selective competitive pressure and follows an appropriate roadmap. More importantly, because the economic structures of the UK and Vietnam are highly complementary, it is expected that competitive pressure will not be great.

Based on the Government’s request, based on the 2016 Law on International Treaties, the President requested the National Assembly to consider and decide to ratify the UK’s Accession Document to the CPTPP Agreement at this 7th Session. .

IMPROVE VIETNAM’S ROLE AND POSITION IN INTERNATIONAL ECONOMIC COOPERATION

Examining the report, the National Assembly’s Foreign Affairs Committee agreed with the content of the National Assembly’s draft Resolution on ratifying the Document. The CPTPP Agreement was officially signed on March 8, 2018 by 11 member countries and approved by the National Assembly in Resolution No. 72/2018/QH14 dated November 12, 2018.

According to the Foreign Affairs Committee, the National Assembly’s ratification of the UK’s CPTPP Accession Document at the 7th Session of the 15th National Assembly will put Vietnam in the first group of 6 CPTPP countries to ratify the Protocol. And if by October 16, 2024, all 6 members of CPTPP announce the completion of ratification procedures, the Document will take effect 60 days later for countries that have ratified it (ie December 16, 2024). ).

Mr. Vu Hai Ha, Chairman of the National Assembly’s Foreign Affairs Committee, said that the National Assembly’s ratification of the Document demonstrates Vietnam’s positivity and responsibility in promoting bilateral trade and investment relations with the Kingdom. England in particular and between CPTPP and the UK in general, contribute to enhancing Vietnam’s role and position in international economic cooperation.

Therefore, the Foreign Affairs Committee unanimously proposed that the National Assembly ratify the UK’s CPTPP Accession Document at the 7th Session of the 15th National Assembly.

The UK’s ratification of the CPTPP Accession Document demonstrates political determination, is consistent with the policies and guidelines of the Party and State on international integration and has a positive impact on socio-economic development. of the country.

The Foreign Affairs Committee submits to the National Assembly for ratification of the UK’s CPTPP Accession Document and requests the Government to direct ministries and branches to continue reviewing and assessing the impact when the Document takes effect, comparing competitive advantages. Vietnam’s competition with CPTPP member countries that have ratified the Document.

Research and propose improvements to policies to reduce risk impacts on those affected by the Document and ensure national interests when the Document takes effect.

Promulgate the Government’s Decree on preferential export tariffs and special preferential import tariffs in the CPTPP Agreement to apply to the UK;

Reviewing amendments and supplements to current legal documents or promulgating new legal documents guiding the implementation of Vietnam’s commitments (including the fields of government procurement and service-investment) to apply to the UK in CPTPP; Direct the review of legal documents issued by localities to amend and supplement them in accordance with the commitments in the Document; ensure full and effective implementation of the Document at the time it takes effect.

Implement procedures for depositing documents to ratify the UK’s CPTPP Accession Protocol; Promote propaganda and dissemination of information about the UK’s commitment to join CPTPP;

Along with that, strengthen market forecasts, improve competitiveness and develop human resources to effectively take advantage of the UK’s market opening commitments to Vietnam, and participate in the network. production network, value chain, regional and global supply chain, Mr. Ha emphasized.

vneconomy.vn