The UK's participation in the CPTPP Agreement not only helps businesses have more opportunities to expand export markets but also creates economic motivation.

According to experts, the UK's participation in the CPTPP Agreement not only helps businesses have more opportunities to expand export markets but also creates economic motivation; raise Vietnam's position in the international arena.

On July 16, 2023, the UK and Northern Ireland signed an agreement to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) - marking the UK as the first new member of CPTPP since this "playground" was established in 2018, it also paved the way for considering admitting additional members.

Along with the British Government having been taking the necessary steps to ratify the CPTPP Agreement (May 16, 2024), other member countries of the CPTPP; including Vietnam, must also complete the internalization processes of each country.

The UK joining the CPTPP Agreement not only helps Vietnamese businesses have more opportunities to expand export markets. Illustration

Assessing this event, the leader of the Multilateral Trade Policy Department (Ministry of Industry and Trade) said that the UK is a very important partner for Vietnam; Therefore, the UK joining CPTPP will create more export markets for Vietnam.

Besides, during the negotiation process between the UK and Vietnam on joining the Agreement; Vietnam has reached an agreement in which the UK will open additional market access for Vietnam in addition to existing bilateral Free Trade Agreements (FTAs); In particular, the fisheries sector will gain great advantages when the official commitment takes effect.

“This is a bright spot of the CPTPP Agreement, and many large economies are also interested and wish to join this agreement (like China...); shows that the role of the CPTPP Agreement is growing stronger and that will certainly create new incentives for businesses and investors to pay more attention to CPTPP members, especially Vietnam" - leader of the Government Department The multilateral trade policy commented and said that the UK's accession to CPTPP will promote trade and investment activities between the two sides; At the same time, it creates conditions for Vietnam's exports to access the market with an annual import turnover of up to 900 billion pounds.

Together with UKVFTA, the CPTPP Agreement brings many benefits to Vietnam - UK bilateral trade. Illustration

Mr. Iain Frew - UK Ambassador to Vietnam also said that when the UK joins the CPTPP Agreement, trade between the two countries will have more room for further development. Along with UKVFTA, the CPTPP Agreement brings many benefits to bilateral trade in a number of areas, especially in the fields of agriculture and digital trade.

The UK Ambassador to Vietnam emphasized that the UK's accession to CPTPP will bring real benefits to trade between the two sides in particular and global trade in general.

According to statistics from the General Department of Vietnam Customs, import-export turnover in the first 5 months of 2024 of Vietnam and the UK grew strongly along with the general increase of the market. Total turnover in 5 months reached nearly 3.3 billion USD, an increase of 23.2%. Of which, Vietnam's exports reached nearly 3 billion USD, an increase of 26.6%. Imports reached 301.2 million USD, down slightly by 2.2%. Trade surplus reached 2.7 billion USD. Exports to the UK slowed down in recent months (April, May) compared to the first months of the year (March, April). Thus, the UK is currently Vietnam's third largest export market in Europe, after the Netherlands (5-month exports reached nearly 5 billion USD) and Germany (5-month exports reached 3.2 billion USD).

After the UK joins, CPTPP members will contribute 15% of global GDP, equivalent to 12,000 billion pounds. That shows that this is a strategically important block. Joining the CPTPP is global and becomes interesting, not only from an economic and trade perspective, but also from a political and strategic perspective.

“We hope that UK and Vietnamese businesses can really take advantage of the opportunities that the CPTPP Agreement brings and develop our value chains in the linked area in both the UK and Vietnam” - Dai British Ambassador to Vietnam expected.

Another notable point, along with joining CPTPP, the UK has officially recognized Vietnam as a market economy. That is very convenient for Vietnam in trade defense investigations, especially anti-dumping investigations. With this result, Vietnam's exported goods will not be discriminated against and will be subject to a more reasonable anti-dumping tax rate than currently.

Also according to data from the Ministry of Industry and Trade, in recent times, Vietnam's trade growth with new member countries of CPTPP has achieved high growth. Although some other members' exports decreased, the decrease was due to general difficulties of the world economy; Due to reduced aggregate demand, rising commodity prices, and inflation in many countries, consumer demand in many countries has decreased.

“However, the rate of applying certificates of origin (C/O) to implement the CPTPP Agreement for some products is still increasing very high. For example, machinery, equipment and other tools and spare parts increased by more than 100%, this proves that businesses have taken good advantage of the advantages that the CPTPP Agreement brings" - Ms. Pham Quynh Mai, Deputy Director of the Government Department Multilateral Trade information book.

Emphasizing the important point when implementing the CPTPP Agreement, according to Ms. Mai, this is a new generation free agreement, including commitments in areas that Vietnam has never committed to, such as: Government Procurement ; Commitment to sustainable development in the service and trade sectors... after implementing the CPTPP Agreement, with the leadership of the Ministry of Industry and Trade and through coordination with ministries and branches; Authorities have urged ministries and branches to develop many legal documents to implement CPTPP. To date, ministries and branches have issued more than 20 legal documents to implement the commitments of this agreement; It is also highly appreciated by members that Vietnam is very seriously implementing the commitments of CPTPP.

During the implementation of CPTPP, the Ministry of Industry and Trade is coordinating with members of this agreement to review the provisions that are not yet included in the Agreement and the possibility of upgrading this Agreement; For example, the commitment to benefit Vietnamese goods and the commitment to sustainable development, has coordinated with relevant associations and agencies to disseminate to businesses; because the trend is green consumption and clean production, so that when exported to developed countries, it can meet the requirements of those markets.

This morning, June 25, the National Assembly voted to pass the Resolution ratifying the Instrument of Accession to the Comprehensive Partnership Agreement; and Trans-Pacific Progress (CPTPP) of the United Kingdom of Great Britain and Northern Ireland using electronic voting. With the majority of participating delegates voting in favor, the National Assembly officially passed the Resolution ratifying the Document of Accession to the CPTPP Agreement.

Source: Cong ThuongNewspaper