Vietnam and UK's accession to CPTPP at the 7th Session

On the afternoon of May 15, during the 33rd session of the Standing Committee of the Vietnam National Assembly, discussions were held on the approval of the United Kingdom’s (UK) accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). This article highlights the procedures from Vietnam and UK’s accession to CPTPP.

The Accession Process: Vietnam and UK’s accession to CPTPP

The UK formally submitted its application to join the CPTPP on February 1, 2021. This initiated a series of negotiations between the UK and the CPTPP member countries. After numerous meetings and discussions, a declaration was issued on March 31, 2023, marking the conclusion of the accession negotiations.

On June 16, 2023, during the 7th Ministerial Meeting of the CPTPP Council in New Zealand, the UK’s accession document was signed by the UK Minister of International Trade and the Ministers from the CPTPP member countries. This officially made the UK the 12th signatory of the CPTPP.

Structure of the Accession Document

The accession document consists of two main parts:

The Protocol of Accession and its Annexes.
Letters from the UK and bilateral letters between Vietnam and the UK.

Presentation and Discussion at the National Assembly: Vietnam and UK’s accession to CPTPP

At the session, the Vice Chairwoman of the Presidential Office and the Chairman of the National Assembly’s Committee for Foreign Affairs presented the President’s submission and the preliminary verification report on the UK’s accession document.

The Deputy Minister of Industry and Trade expressed general agreement with the content of the preliminary verification report by the Committee for Foreign Affairs. He elaborated on the necessity of the timely ratification of the UK’s CPTPP accession document.

He emphasized that three CPTPP members – Singapore, Japan, and Chile – have completed their domestic procedures for ratification. New Zealand, Brunei, Malaysia, and Peru are expected to finalize their ratifications soon. The UK Parliament has completed its comprehensive review of the accession protocol, with ratification likely by July.

Highlighting the importance of Vietnam being among the first six CPTPP countries to ratify the document, he underscored the necessity of presenting it for approval at the 7th session of the 15th National Assembly.

Government Stance on Reservations and Legislative Changes

He assured that the Vietnamese government has no reservations about any content related to Vietnam in the UK’s CPTPP accession protocol. There are also no objections to the UK’s reservations. Additionally, the government does not recommend any amendments or the introduction of new laws to implement the accession document. At the sub-legislative level, the government plans to issue a decree on new tariff schedules or new legal documents to guide the implementation of commitments on government procurement and services-investment.

Statements by Government Officials

The Deputy Prime Minister stressed the significance of promptly presenting the UK’s CPTPP accession document to the National Assembly for approval. He noted that the government will expedite the review, supplement the necessary documents, and draft a decree on preferential export and import tariffs under the CPTPP for the UK.

In conclusion, the Permanent Vice Chairman of the National Assembly confirmed that the Standing Committee unanimously agreed to present the UK’s CPTPP accession document to the 15th National Assembly for approval at its 7th session.

Implementation Plan

The Permanent Vice Chairman requested the government to finalize the complete dossier for submission to the National Assembly, including supplementary reports on the verification content, a draft resolution for the National Assembly’s approval, and a detailed implementation plan. The Standing Committee also suggested that the government draft a decree on preferential tariffs under the CPTPP for the UK and review or amend existing legal documents to guide the implementation of commitments on government procurement and services-investment once the UK officially becomes a CPTPP member.

Significance of the UK’s Accession to the CPTPP

Vietnam and UK’s accession to CPTPP marks a significant expansion of the agreement, strengthening economic ties between the UK and the existing CPTPP members. This move is expected to boost trade and investment flows, enhancing economic cooperation and integration among member countries.

The CPTPP, initially comprising 11 countries from the Asia-Pacific region, including Vietnam, Japan, Canada, and Australia, represents a significant share of global GDP and trade. The inclusion of the UK, a major global economy, will further enhance the agreement’s economic clout and strategic importance.

For Vietnam, the UK’s accession to the CPTPP offers numerous benefits, including increased trade opportunities, enhanced market access, and stronger economic partnerships. The agreement provides a framework for reducing trade barriers, improving market access for goods and services, and fostering a more predictable and transparent trading environment.

Impact on Vietnamese Businesses

Vietnamese businesses stand to gain significantly from the UK’s accession to the CPTPP. With the reduction of tariffs and the elimination of trade barriers, Vietnamese exporters will have greater access to the UK market. Key sectors such as textiles, apparel, footwear, seafood, and agricultural products are expected to benefit the most.

Moreover, the agreement will create opportunities for Vietnamese businesses to form partnerships and collaborations with UK companies, fostering technology transfer, innovation, and investment. The enhanced legal and regulatory framework provided by the CPTPP will also help Vietnamese businesses operate more efficiently and competitively in the global market.

Strengthening Economic Cooperation

Vietnam and UK’s accession to CPTPP will further strengthen economic cooperation between Vietnam and the UK. It will facilitate the flow of goods, services, capital, and technology, promoting mutual economic growth and development. The agreement will also provide a platform for addressing trade and investment issues, fostering a more stable and predictable business environment.

In conclusion, the presentation of the UK’s CPTPP accession document to the 7th session of the 15th National Assembly for approval is a significant step towards strengthening Vietnam’s economic ties with the UK and enhancing its role in the global trading system. The timely ratification of the document will ensure that Vietnam remains a proactive and integral member of the CPTPP, leveraging the agreement to drive economic growth and development.

As Vietnam continues to integrate into the global economy, the CPTPP provides a robust framework for enhancing trade and investment flows, fostering economic cooperation, and promoting sustainable development. Vietnam and UK’s accession to CPTPP is a testament to the agreement’s growing importance and its potential to shape the future of international trade and economic cooperation.

ANT Lawyers, Law Firm in Vietnam

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi, and Danang, and will help customers in doing business in Vietnam.