Does CPTPP takes effect in early 2019?

The CPTPP is a new generation of FTAs with the highest standards that Vietnam has signed. Source: Internet

Speaking at the CPTPP Agreement Conference: The basic commitments - notes for enterprises, held on 22/5, Deputy Minister of Industry and Trade, Mr. Tran Quoc Khanh said that: on 8/3, the CPTPP Agreement was signed due to the great efforts and political resolve of all remaining countries when the United States pulled out, and especially due to the lead role of Japan.

At present, there are some comments stating that the CPTPP has a much lower standard than the previous Transpacific Partnership Agreement (TPP). The country members have agreed to postpone some important obligations.

This is a great misunderstanding. Most of the important content of the TPP Agreement remains unchanged in the CPTPP. The CPTPP is still a new high standard trade agreement, which is a great encouragement to the current trade liberalization process.

"With the determination of many countries, the chance that the CPTPP agreement will be valid in early 2019 is very high. The opportunities and challenges of the CPTPP have come closer. According to economic experts, although the benefits of the CPTPP are not as great as the TPP, this is still an important factor in the economic renovation process, especially the impact on the business environment in Vietnam," Mr. Khanh said.

Around the core contents of the CPTPP, Mr. Luong Hoang Thai, Director of the Multilateral Trade Policy Department, Ministry of Industry and Trade, said that the CPTPP basically upholds its commitment to market opening as TPP. All regulations in the form of cuts, reduction schedules, rules of origin, commitment to open the market for public procurement or investment services are retained.

However, as the United States withdrew from the TPP, the CPTPP was flexible in several areas. With the formal dismantling obligations that all countries agree on, they include the "postponement of obligations". The moratorium is applied until the United States returns. If after a period of time, the United States certainly will not return, the countries will see whether further delays will continue.

"There are about 20 such obligations. In that group, the most important content related to enforcement of intellectual property rights, protection of intellectual property rights. The reason is because, to protect intellectual property rights there must be money and resources. When the United States withdrew from the TPP, the incentives for market access were diminished, so the requirements for intellectual property rights were removed," he said.

According to Mr. Thai, with Vietnam, related to the CPTPP Agreement, there are also some letters exchanged separately with other countries. Previous areas in the TPP Agreement, countries have recognized that Vietnam is the most profitable due to the United States, now the United States has withdrawn, Vietnam is removed from the high obligations of the agreement.

"For example, in the field of labor, Viet Nam basically has more autonomy in policy choice. In the first three years of the CPTPP, no country will complain about labor issues. Some special obligations in the field of labor, countries will also give Vietnam a longer time. In the area of e-commerce, countries will also spend a certain amount of time not complaining to Vietnam," he added.

From the perspective of reflecting the voice of the business community, Mr. Vu Tien Loc, President of Vietnam Chamber of Commerce and Industry (VCCI) said that CPTPP is an opportunity but also a challenge. The challenge of implementing the CPTPP is not less than that of the TPP Agreement, which is even greater than the previous free trade agreements of Vietnam.

In recent times, Vietnam has made strong moves in reform, improve the business environment with coherent programs, concrete actions. The issue is how all state agencies and enterprises should join in the effort to reform the system in a holistic, and effective manner, making the best use of the opportunities provided by the CPTPP.