TPP expected to continue despite US withdrawal: VCCI

The Trans-Pacific Partnership agreement, whose fate seems uncertain after the US’ withdrawal, will certainly continue in another form, the Vietnam Chamber of Commerce and Industry (VCCI) has said.

Illustrative image (Photo: VNA)

Hanoi (VNA) - TheTrans-Pacific Partnership (TPP) agreement, whose fate seems uncertain after theUS’ withdrawal, will certainly continue in another form, the Vietnam Chamber ofCommerce and Industry (VCCI) has said.

“We believe that TPP membercountries, even the US, don’t want to waste the six years of negotiation andthe large opportunities the trade deal would bring,” Vu Tien Loc, chairman ofVCCI, told reporters last week.

“The TPP will certainly continue. Itcould be a bilateral or multilateral trade deal,” he said, adding that it,however, may come into effect at a later date than previously scheduled, whichwas 2018.

Vietnam has a lot of expectationsfrom the TPP and the European Union-Vietnam Free Trade Agreement (EVFTA) asthey open large markets and create significant opportunities for trade growthand for improving domestic economic institutions.

The fate of the TPP became uncertainin January after US President Donald Trump signed an executive order formallywithdrawing the US from the 12-nation trade deal on his fourth day in office.

In 2016, the US was Vietnam’slargest export market, bringing in revenue of 38.5 billion USD, a 15 percentrise over the same period last year, customs statistics showed. The US hasmaintained this position in the first two months of 2017, with the turnoverrising by 18.9 percent compared to the same period last year, to 6 billion USD.

With the TPP on shaky legs, Vietnamis now looking more towards the EVFTA, which is expected to come into force in2018.

Vietnam should focus on threemeasures to grasp opportunities from the EVFTA, which include hastening thesigning and approval of the EVFTA, continuing institutional reforms, andimproving its competitiveness and business environment, Loc said.

The trade deal will help connect theSoutheast Asian country of nearly 90 million people to the European Union (EU),which has an estimated population of 500 million. The market size would benearly 1 billion if the ASEAN markets are included.

Vietnam’s export to the EU in thefirst two months of 2017 reached 5.4 billion USD, up 13.2 percent, while importfrom these markets rose by 24.6 percent to 1.7 billion USD.

To date, Vietnam has signed 12bilateral and multilateral trade deals, 10 of which have already come intoforce. Four other Free Trade Agreements (FTAs) are under negotiation, includingthe Regional Comprehensive Economic Partnership, ASEAN-Hong Kong FTA, FTA withIsrael and with European Free Trade Association.-VNA

VNA