Illustrative image (Photo: VNA)Mexico City (VNA) – Mexican economists have shared the view that once the Comprehensiveand Progressive Agreement for Trans-Pacific Partnership (CPTPP) takes effect, Mexicowill have to face fierce competition from Vietnam in many sectors, such as garments and textiles,leather and footwear, and electronic equipment.
Arnulfo Gomez, a foreigntrade expert, said Vietnam has successfully implemented a commercial strategythat helps improve the quality and competitiveness of its products on theinternational market by reducing spending on materials and applying technology inproduction.
With such advantages,Vietnam has more capacity than Mexico to utilise opportunities generated by theCPTPP, he said.
The experts suggestedthat the Mexican Government set forth new measures to raise the competitivenessof domestic businesses, thus avoiding adverse impacts from the deal.
Statistics of theMexican Ministry of Economy show that trade between Vietnam and Mexico betweenJanuary and October 2018 reached 3.85 billion USD, with a trade surplus of 3.5billion USD in favour of Vietnam.
The CPTPP, formerly named the Trans-Pacific Partnership Agreement (TPP),is made up of 11 signatories following the US withdrawal. The current memberstates are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, NewZealand, Peru, Singapore, and Vietnam.
The deal is considered a high-quality free trade agreement and one ofthe most comprehensive trade deals ever concluded. The CPTPP member states forma giant market with 500 million consumers and a combined gross domestic productof 13.5 trillion USD, accounting for 15 percent of the world’s GDP and 15percent of the global trade turnover.
The Vietnamese National Assembly passed a resolution ratifying the CPTPPand related documents on November 12. Mexico, Japan, Singapore, New Zealand,Canada, and Australia had already ratified the agreement.
The CPTTP is expected to take effect on December 30 this year.–VNA
VNA
