The TPP deal embraces 12 countries. (Photo: Internet)
The U.S. will abolish 55.4% of import tariffs on Vietnamese farm produce, equivalent to 97.7% of imports from Vietnam, as soon as the Trans-Pacific Partnership (TPP) agreement comes into force, Vietnam’s Ministry of Finance said at a press meeting late on Monday.
Vietnam’s major staples such as rice, honey, coffee, tea, pepper, cashew, and veggies will be immediate beneficiaries.
From the 10th year onwards, the U.S. will eliminate as many as 97.4% of tariffs on Vietnamese produce. However, tariff-rate quota will be imposed on sugar and sugar-related products.
A large number of other Vietnamese exports to America will enjoy zero tariffs.
As many as 85.6% of tariffs on Vietnamese industrial products will be abolished. Meanwhile, tariffs on Vietnamese seafood products will be removed immediately or from the third year of the trade deal.
In addition, 85% of tariffs on Vietnamese footwear will be eliminated immediately, or 39.7% of Vietnamese footwear exports to the U.S, while 73.1% of tariffs on Vietnamese apparel products will be removed right after the deal takes effect.
Vietnam posted a trade surplus of $23.09 billion with the U.S. in the first nine months of this year, rising 29% from a year earlier. The Southeast Asian country shipped $28.2 billion worth of goods to the U.S. while importing $5.11 billion from that market.
U.S. Ambassador to Vietnam Ted Osius has recently said the world-class TPP will provide Vietnamese farm produce with wider access to export market and help boost the Vietnamese economy.