The most attention-catching point of the Trans-Pacific Strategic Economic Partnership Agreement (TPP) is the strong liberation of goods. Therefore, this agreement is expected to become a comprehensive, high-quality and standardised commercial framework for agreements in the 21st century. In early 2009, Vietnam decided to join the TPP as an associated member. In November 2010, after attending three TPP negotiations with this status, the country officially entered into TPP negotiations.
Opportunities
Entering into a comprehensive regional free trade agreement like TPP is an opportunity to create great leaps in economic development, and export is most benefited. Vietnam will also have the opportunity to negotiate with the United States to open up its market for Vietnamese goods, curb the trade deficit and attract investment from the United States and other countries.
Basically, signatories will enjoy significant tariff benefits and all parties are equally treated in the TPP. Vietnamese businesses will have facilitated access to foreign markets for major exports like seafood, apparel, footwear and furniture. In addition, TPP provisions will also help effectuate import restriction measures, use TPP commitments concerning technical trade barriers and phytosanitary measures to avoid conflicts.
Joining the TPP, Vietnam will better draw on opportunities brought in by the process of international and regional restructuring and regional economic integration trends. Moreover, accession to the TPP will offer more conditions for Vietnam to launch international integration strategies in general and foreign policies for Asia - Pacific region in particular, and elevate the status of Vietnam on the international arena.
Challenges
Commitments to the TPP and following them pose significant challenges to Vietnam, especially pressures to open up the markets, with weak competitiveness of Vietnamese businesses, and weak management. If not well prepared, many industrial and service sectors will possibly face difficulties. However, this is a road Vietnam has to pass sooner or later to restructure its economy successfully towards increased added value, quality and efficient economic growth.
According to the Vietnam Chamber of Commerce and Industry (VCCI), joining the TPP may cause some negative social consequences like bankruptcy and unemployment in weak companies. Besides, labour negotiation results may affect the labour environment in Vietnam to a certain extent.
In addition, to realise TPP commitments, Vietnam may have to amend and supplement a number of laws on trade, investment, procurement and intellectual property rights. Nonetheless, with its experience gained from the process of WTO accession negotiations, this may not be a big challenge for Vietnam.
In addition, the TPP will not help eliminate anti-dumping and anti-subsidy lawsuits that the United States is applying. The TPP will not restrict the United States from using safeguard measures on Vietnam’s products accused of dumping or subsidy.
Huong Giang
Vietnamese
