Vietnam And Canada Trade Agreement

Posted: October 13, 2021 by Podwits Administrator in Uncategorized

Duty-free access for merchandise trade between Canada and Vietnam will come into force with the new agreement, as well as the elimination of tariffs for Canada in major export zones. Agricultural products, such as beef products, will reduce tariffs by 34% in seven years, accompanied by pork products that will benefit from the elimination of tariffs of up to 31% in nine years. Select a country to find market information and contact a sales representative for the export of advice and contacts. The conditions set out in the CPTPP create a trading framework for better market access between Member States. Once the agreement is ratified, the elimination of tariffs abroad will have the potential to boost Canada`s activities abroad if applied strategically. Canada`s recent trade with Vietnam is significantly lower than Vietnam`s major trading partners, China and South Korea. Canada accounts for only 0.2 per cent, or US$395 million, of Vietnam`s imports, while China accounts for 31 per cent or $US 60 billion of Vietnam`s imports and South Korea 17 per cent, or $US 32.6 billion of Vietnam`s imports. Take your business to the next step. Explore ways to expand your presence in Vietnam with the help of our Trade Commissioner (TCS) service and find out more information about the trade relations between the two countries, market facts and other information.

A projected $4.2 billion boost to Canada`s long-term economy is the expected result. When the current agreement enters into force, Canada will be the only G7 nation to have access to free trade in North America, Europe and the Asia-Pacific region. Vietnam has been Canada`s largest trading partner in the ASEAN region since 2015. In 2018, bilateral merchandise trade between Canada and Vietnam reached $US 6.46 billion, up from $US 6.1 billion in 2017. In 2018, Canada`s merchandise exports to Vietnam amounted to approximately $US 1 billion. Canada`s merchandise imports from Vietnam totaled more than $5.39 billion. Vietnam is Canada`s largest trading partner in ASEAN. Despite the establishment of diplomatic relations in 1973, relations between the two countries have only recently intensified. As one of the largest free trade agreements in the world, businessmen in Canada will find more transparency in emerging countries, as well as a wider range of competitive investment and trade options in the Asia-Pacific region. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a free trade agreement between Canada and ten other countries in the Asia-Pacific region: Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

Once fully implemented, the 11 countries will form a trading bloc representing 495 million consumers and 13.5% of global GDP and providing Canada with privileged access to key markets in Asia and Latin America. While the potential for increased Canadian trade and investment in Vietnam is strong, Canada expects a weak base. For more information, see Trade and Investment Agreements. If you have any questions or comments about the CPTPP, please contact Global Affairs Canada at: Summary of Tariff Reductions and Benefits of the CPTPP for Canadian Industry. Canada has been Vietnam`s development partner for more than 25 years. Since 1990, Canada has provided more than $1.5 billion in development assistance through all channels to support Vietnam`s development and poverty reduction efforts, which are closely aligned with Vietnam`s strategic priorities. Canada and Vietnam have a relationship of trust in development cooperation, which has yielded good results in the fight against poverty and has strengthened intermediary relations. Given that Vietnam is already Canada`s largest trading partner in the region, the CPTPP has changed the scope of Canada-Vietnam relations, particularly for Canadian companies willing to participate in Vietnam`s current growth course. . . .

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