Vi?t Nam’s Governement expects the Vietnamese fishery sector to benefit from two new generation trade deals favouring exports thanks to tariff cut. These agreements — the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the European Union-Vietnam Free Trade Agreement (EVFTA) — will offer Vietnamese fishery firms chances to expand export markets, especially new markets such as Canada, Peru and Mexico, according to the Department head V??ng ??c Anh. Anh clarified that these changes can come true if Vi?t Nam’s biggest rivals – Thailand and China – in this sector sign the FTAs with the European Union and join the CPTPP, Viet Nam News reported.
Under the EVFTA, aquatic products, excluding canned tuna and fish balls, will enjoy a zero tax for a maximum of seven years. While under the CPTPP, Canada and Peru will cut taxes to zero per cent once the deal takes effect. Other countries will offer tax reductions in accordance with roadmaps. Similarly, in the shrimp sector, after EVFTA and CPTPPP comes into force, Vi?t Nam will enjoy a reduction in import duties on raw shrimp and export duties on processed shrimp to EU and CPTPPP.
In addition, the fact that India is not a member of the CPTPP and that the FTA negotiations between India and the EU are also being suspended is seen as an opportunity for Vi?t Nam’s shrimp export products to compete with leading exporters in India. According to Vietnamese businessespeople, export taxes to some seafood markets are very high. Specifically, shrimp export of Vi?t Nam to the EU region has an average tax of 6-20 per cent, tuna products are imposed average tariffs ranging from 11 to 20 per cent.
For markets in CPTPP, each country applies different tax rates, ranging from 2 to 10 per cent. Therefore, when EVFTA and CPTPP becomes effective, the reduction of tariff lines will help Vietnamese seafood exporters reduce prices significantly, improve competitiveness and export turnover. Vietnamese aquatic firms will also have chances to improve technology and product quality, join the regional supply chain and diversify materials supply sources. Signing new-generation FTAs also requires the State to reform mechanisms, thereby creating a stable and transparent business environment.