Illustrative image (Photo: congthuong.vn) Hanoi (VNA) - The UK's accession to the Comprehensiveand Progressive Agreement for Trans-Pacific Partnership (CPTPP) will complement the existingUK-Vietnam Free Trade Agreement (UKVFTA) and help upgrade the bilateralrelations thanks to additional preferential tariffs, KemiBadenoch, Secretary of State for the Department for Business and Trade of theUK, reportedly said.
Dau tu (Investment) newspaper also quoted the official as say ing the removal oftrade barriers will support the common economic security between the twocountries, as they join deeply in each other's supply chains and diversifytrade activities, thus creating greater opportunities for businesses of bothnations.
The UK hascompleted negotiations to join the CPTPP, which is expected to be signed in2023 and ratified by member countries in 2024.
With 11members, it is also one of the largest trade pacts in the world,covering 13.5% of global GDP and a market of about 500 million people. The UK’sparticipation in the agreement will help the bloc’s GDP increaseby nearly 16%.
It is expectedto open more trade cooperation opportunities between Vietnam and the UK, aswell as bring about investment opportunities to each CPTPP member.
After the UK joins the CPTPP, Vietnamese businesses will have an opportunity to choose which FTA incentives are most beneficial and easiest to apply. -Illustrative image (Photo: VNA) The UKVFTA, which was signed and took effect in early 2021, has created a boostto goods trade between the two nations. Two-waytrade reached nearly 6.6 billion USD in 2021. Vietnam's exports to the UK hit nearly5.8 billion USD in the year, and 6.06 billion USD in 2022, up 16.4% and 5,2%year-on-year, respectively.
Regardingthe UK's commitments to cutting tariffs for Vietnam’s goods within the CPTPP, tUK Ambassador to Vietnam Iain Frew said this will bring more benefits to Vietnameseexporters.
Agricultureand fisheries, including vegetables and fruits, coffee, cashew nuts, seafood, textiles and footwear - Vietnam’s strong exports to the UK - are tobenefit the most from the trade deal.
After the UKjoins the CPTPP, Vietnamese businesses will have an opportunity to choosewhich FTA incentives are most beneficial and easiest to apply.
On the otherhand, the UK can increase the export of its farm produce, equipment andtechnologies to Vietnam. Investment flows from the UK to CPTPP member countries,including Vietnam, will be also expanded thanks to this accession.
According to Vietnam Trade Counselor in the UK Nguyen Canh Cuong, new-generationFTAs will create more room for Vietnamese goods to make inroads into the UK.
However, he also advised Vietnamese exporters to pay heed to meeting thequality requirements of impo▨rters, and issues related to consumer trends in theEuropean nation./.
