Some 300 goods are likely to enjoy preferential tariffs in Vietnam under a pending decree detailing tariff cuts under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Its draft has been submitted by the finance ministry to the government for approval as firms await procedural changes related to CPTPP to plan strategies. Tariffs under the CPTPP are set to be divided into two categories: one for countries that have put the trade deal into effect in late 2018, including Canada, Australia, New Zealand, and Singapore, and the other for those which implemented the pact in 2019, according to a report by Vietnam’s official radio station. The new generation pact will allow firms to select appropriate tariffs for the import and export of their goods. Garment and textile exports are among the categories enjoying the most benefits from Canada’s tariff reduction as they have optimised export opportunities from the Canadian market, thanks to their strict compliance to certificate of origin (CO) regulations. The CPTPP agreement groups 11 member countries, namely Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. The pact came into force from December 30, 2018, and Vietnam ratified the agreement on January 14 this year.
Source – Fibre2Fashion.
