According to survey data of Vietnam Chamber of Commerce and Industry in 2015 in Ho Chi Minh City. Ho Chi Minh on the understanding of enterprises (enterprises) on Trans-Pacific Partnership (TPP), 91% of enterprises still know too little about TPP, 20% of enterprises have never heard of TPP, 45% of enterprises have but I don’t know deeply, 26% of businesses have found out briefly. This is a too low rate for businesses to apply TPP to commercial activities.
Vietnamese seafood processing has been present in many countries around the world
Explaining the lack of interest in TPP, many businesses said that the economic situation is difficult so they have to focus on the existence of enterprises, rarely time of interest and thorough understanding of TPP. In particular, the enterprises are still psychologically general, “come or go there”. TPP is far away and does not have much impact on the industry of active businesses.
Meanwhile, according to experts, the TPP Agreement is expected to bring great benefits to member countries, especially Vietnam. In order to take full advantage of the free trade agreements (FTA) and TPP, businesses need to understand the provisions of the agreement to apply to business activities. On the functional agencies, solutions to change perceptions of enterprises need to go through seminars, conferences, training courses according to each industry, each specific regulation, avoiding propaganda with general characteristics.
TPP Agreement is officially signed by 12 TPP member countries on February 4, 2016 and will be ratified by the National Assembly of member countries in the future. TPP member states strive to bring this agreement into effect in early 2018. As soon as the agreement comes into effect, many tariff lines are abolished, some of the remaining lines of sensitive products need to be gradually reduced according to the year according to a specific commitment roadmap. TPP has 30 chapters, enterprises need to know the following 6 chapters to make use of the agreement in a total of 30 chapters.
First, Chapter 2 on national treatment and market opening for goods. In all FTAs, the chapter on tariff reduction is one of the important chapters. Accordingly, goods of one country exporting to another member state will enjoy preferential tariffs as committed by the parties. For example: When the TPP Agreement comes into effect, Vietnam commits to abolish import tax on 66% of tariff lines and 86.5% of tariff lines in the fourth year. 5-10 years. Some items are particularly sensitive, the route is over 10 years. Or as the United States pledged at the time of the entry into force of the agreement, about 98% of agricultural and fishery turnover and 75% of industrial turnover (excluding textiles) were exempt from import duty.
Therefore, businesses need to check the tax rate applied at the time of export to select the most optimal tax option (zero or lowest tax ) in the trend of FTAs intertwined. For example, exporting to Japan when TPP comes into effect, enterprises can choose from 4 types of incentives: Vietnam-Japan FTA (VJFTA), ASEAN-Japan FTA (AJFTA), TPP and preferential system (GSP).
In the TPP Agreement, the tariff reduction of each member country will be based on the commitments made by the parties and specified in this chapter.
Monday, Chapter 3 on rules of origin and certification procedures for origin. This is the main chapter and is considered the backbone of each FTA.
To take advantage of incentives from the TPP Agreement, goods of enterprises need to meet the requirements of the rules of origin prescribed and specific requirements in Chapter 3.
Tuesday, Chapter 4 on textiles. Textile is always a sensitive item in international trade. With the TPP agreement, textile is one of the topics that are interested by Vietnamese negotiators. Textile is also reported by the media about the content of this chapter. The nature of the textile chapter is that it is necessary to meet specific requirements, to say that it is precisely the rules of origin in the textile industry that need to meet the requirements of goods entitled to incentives under the commitments in Chapter 2 of the agreement. .
To assess the opportunities of this industry when the TPP Agreement comes into effect, many media reports, this is the industry that benefits the most from the agreement. However, in my opinion, after thoroughly studying the requirements of this chapter, textiles hardly benefit from the agreement, if the conditions for fiber, yarn and textile production in Vietnam there is no breakthrough breakthrough. This is a very difficult problem to have a solution in a day or two.
Wednesday, Chapter 6 on trade defense. Trade defense is divided into 3 measures: (1) Anti-dumping; (2) Anti-subsidy and (3) Self-defense.
For example, in TPP, countries can apply safeguard measures as a temporary safeguard mechanism to allow a member to take a safeguard measure temporary for a product of one or more parties within a period not exceeding 2 years, if the import spike or threatens to cause serious damage to the domestic manufacturing industry. Neither party may apply safeguard measures more than once for the same product and does not apply to tariff quotas and quantity restrictions.
Thursday, Chapter 7 on food safety and phytosanitary measures (SPS). The SPS Chapter in TPP is based on the provisions of the WTO SPS Agreement on identifying and managing risks in a way that does not restrict trade more than is necessary; ensuring the goal of expanding and promoting trade in many ways to address SPS issues; recognizing equivalent recognition is a means of promoting trade through mutual recognition of an SPS measure, multiple SPS measures and the whole system. The application of SPS measures based on science, non-discrimination, transparency in the risk assessment process.
Friday, Chapter 8 on technical barriers to trade (TBT). TPP member states agree to cooperate to ensure technical regulations and standards, without creating unnecessary barriers to trade. In order to cut costs for TPP businesses, especially small businesses, TPP members agree on regulations to eliminate duplication and inspection procedures for products, set up easy processes. more help companies access TPP markets. The TPP Agreement contains annexes relating to specific areas of regulation to promote common policy approaches in the TPP region.