A view of a National Assembly meeting. (Source: Vietnam News Agency)
Vietnam and 11 other countries finalized the TPP negotiations in Atlanta on October 5, paving the way for the U.S.-lead deal to be signed in January 2016, but the agreement will not be effective until the parliament of each member nation approves it.
Under the Vietnamese legislation, the government can sign international accords after having collected opinions from other organisms. As such, the government will submit the TPP to the state president and the National Assembly decides whether to ratify it after the president forwards it.
Sharing the same view, Bao Viet Securities Company said in a macro report released on October 8 that the TPP can hardly be endorsed by parliaments of the 12 member countries by the second quarter of 2016.
“The TPP is a mega-regional accord encompassing 40% of global GDP and providing for significant liberalization. Covering trade-related aspects of industry, agriculture, services and investment, as well as environmental and labor issues, the accord will open markets and provide an enhanced rules-based framework for the conduct of trade, reducing red tape and uncertainty. It is a living accord able to handle new issues and open to new members. But first, it must be ratified by the 12”, HSBC said in a flash report.
Vietnam is reckoned to be the greatest beneficiary from TPP. Its exports will be 28.4% higher in by 2025 than without TPP, and Vietnam’s GDP would be 10.5% higher, according to economic models.