Vietnam will eliminate 65% of import taxes imposed on Mexican products right after the pact takes effect and 95% of the duties within 10 years, the ambassador told Mexico’s Trade and Investment Promotion Agency (ProMexico).

In response, Mexico has committed to lifting 77.2% of taxes on Vietnamese goods, making up 36.5% of Vietnam’s total export revenue to the Latin American country, she said.

To observe the commitments and maximise opportunities brought about by the agreement, Lan suggested the two countries enhance their cooperation, exchange information and experience, support each other and raise competitiveness of their small-and medium-sized enterprises, helping them gain a firm niche in the domestic market while expanding the export market.

However, she stressed, the deal is also predicted to pose a range of challenges to both countries such as higher competitiveness and stricter regulations regarding technologies, environment, product safety, hygiene and origin.

During the first eight months of this year, Vietnam imported US$312 million worth of goods from Mexico, a drop of 2.5% year-on-year, while exporting more than US$1.2 trillion to the country, up 20% against the same period last year.

Vietnam’s key exports to Mexico include phones, footwear, electronic equipment and components, garments, aquatic products and coffee. It imports computers, electronic products and parts, machines, tools and cattle feed from the country.

The TPP started out as P-4 with Chile, New Zealand, Singapore and Mexico. The US joined in September 2008 and Vietnam in early 2009. The deal now brings together 12 countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the US and Vietnam.

The pact aims to break down trade and investment barriers between these countries of 800 million people, which constitute 30% of global trade and about 40% of the world’s economy.

TPP negotiations began in March 2010 and concluded in October 2015 after 19 rounds. The full-text of the deal was released a month later. Most contents of the agreement have remained unchanged by members apart from some technical aspects.

Source: vov.vn