Peru's CPTPP ratification likely to boost trade with Vietnam

23 Jul '21

2 min read

Peru’s official ratification of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is likely to boost trade between Vietnam and the South American nation. Vietnamese goods will have more scope to penetrate the Peruvian market in future with the ratification. Trade between both sides increased from $284.96 million in 2014 to $422.73 million in 2019.

Last year, the value stood at only $391.17 million due to the impact of the COVID-19 pandemic. However, bilateral trade grew strongly in the first half of this year to reach $278.27 million, up by 78.7 per cent year on year.

According to the Vietnamese ministry of industry and trade, Peru has joined most of international and regional institutions and signed 27 free trade agreements.

Vietnam’s major exports to Peru include phones and electronic components, computers and electronics, footwear, clinker and cement, garments-textiles and aquatic products. Meanwhile, Peru ships fish powder, antimony and minerals to the Southeast Asian nation.

Peru has been viewed as a potential market that matches Vietnamese firms’ capacity and scale as up to 75 per cent of Peruvian export and import companies are small and medium ones, according to a report by a Vietnamese news agency.

Peru has committed to removing up to 81 per cent of tax lines right after the CPTPP comes into force, and 99.4 per cent of tax lines in the 17th year after the deal takes effect.

The Peruvian Congress recently ratified the CPTPP, which was signed in March 2018, becoming the eighth member country to ratify the deal.

It will officially take effect in Peru 60 days after the country completes the registration of the ratification with New Zealand, the depository for the TPP.

Fibre2Fashion News Desk (DS)

More Textiles News - Vietnam...