CPTPP gives extra leverage to Vietnam-Canada trade ties

This opinion was shared during a seminar held on March 23 in Hanoi aimed at reviewing joint trading ties following the two-year enforcement of the CPTPP as member nations move towards a sustainable future after the novel coronavirus (COVID-19).

Both countries enjoy sound trading ties due to the opportunities brought about by the trade deal that originally came into force in the nation from January 14, 2019. Indeed, bilateral trade turnover reached a figure of US$8.9 billion in 2020, representing a 12% annual rise and 37% growth from two years ago, despite facing the range of negative impacts from the COVID-19 pandemic.

Vietnamese exports to the Canadian market enjoyed a surge of approximately 16% in 2020, with a sharp increase witnessed in terms of exports of mobile phones, footwear, furniture, and garments and textiles.

According to Canadian Ambassador to Vietnam Deborah Paul, the CPTPP has improved the accessibility of trade and service activities between the two nations. In addition, it has also served to consolidate a common set of rules, reduce costs for trade activities, and helped to give a competitive edge for Vietnamese and Canadian products in both markets, respectively.

Most notably, the country has been the biggest trade partner of Canada in ASEAN since 2015, whilst the nation is also the second biggest importer of Canadian agricultural products and seafood, including items such as cereal products, nuts, fish, crustaceans, fruits, beef, pork, and dairy products.

The trade deal serves to establish duty-free access for trade in goods between both sides, while also helping local consumers to purchase high-quality products from Canada at reasonable prices.

In his remarks at the seminar, Vu Tien Loc, president of the Vietnam Chamber of Commerce and Industry (VCCI), described mutual trading ties as one of the most successful models brought about by the CPTPP. This is largely due to the sustained efforts made by businesses of both countries in terms of setting up market development rules.

Furthermore, the two nations have seen major achievements in relation to their import-export activities, with the trade pact playing an important role, the VCCI leader said.

The implementation of the CPTPP has seen Canada abolish 94% of tax lines for Vietnamese exports, while the Southeast Asian country has removed close to 66% of tax lines for imports from the North American country. In addition, non-tariff barriers have also been improved in a transparent manner, thereby facilitating trade flows between the countries.

Participants also agreed that the Vietnamese business community should capitalise on the opportunities offered by the CPTPP, thereby further integrating into the international supply chain. Meanwhile, Canadian businesses looking to find business opportunities in Vietnam need to undertake a full assessment when selecting a local partner, they said.