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1. Overview of the Comprehensive and Progressive Agreement for TransPacific Partnership (CPTPP) 2. The situation of Vietnams wood and wood products export activities in the context of CPTPP 3. Opportunities and Challenges of CPTPP to Vietnam’s wood and wood product exports 4. Recommendations TransPacific Partnership Agreement had the participation of 4 countries, and later grew to 12 members by 2013. TPP was one of the most significant free trade agreements (FTAs) initiatives around the globe.
P R E S E N T A T I O N G R O U P OPPORTUNITIES AND CHALLENGES OF EXPORTING VIETNAM'S WOOD AND WOOD PRODUCTS TO CANADA IN THE CONTEXT OF CPTPP L e c t u r e r : V U H U Y E N P H U O N G ( P h D ) Content Overview of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) The situation of Vietnam's wood and wood products export activities in the context of CPTPP Opportunities and Challenges of CPTPP to Vietnam’s wood and wood product exports Recommendations Overview of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) • FORMATION HISTORY OF CPTPP BACKGROUND • Trans-Pacific Partnership Agreement had the participation of countries, and later grew to 12 members by 2013 • TPP was one of the most significant free trade agreements (FTAs) initiatives around the globe MARCH 8, 2018 SAN DIEGO, CHILE FROM TPP TO CPTPP • The withdrawal of the United States in 2017 • In November 2017, the 11 remaining countries agreed to change the name of the Agreement 11 MEMBERS 1.2 THE MAIN CONTENTS OF CPTPP 07 Articles and 01 Appendix • Stipulating the relationship between 12 countries • Handling other matters relating to the validity, withdrawal or accession to the CPTPP Agreement Generally preserves the contents of the TPP Agreement All core commitments outlined in the TPP Agreement are still upheld in the CPTPP Agreement Modifications CPTPP allows member countries to postpone the implementation of 20 sets of requirements 1.3 Commitment between Vietnam and Canada regarding wood and wood product exports 1.3.1 Tariff Preferences According to the CPTPP agreement, Canada has committed to allowing Vietnam to enjoy the following tariff rates for exports to Canada: For raw timber products For processed wood products 0% import duties 0-3% import duties 1.3 Commitment between Vietnam and Canada regarding wood and wood product exports 1.3.2 Rules of Origin Woods and wood products shall be treated as originating goods if: Wholly obtained Produced in Vietnam or a CPTPP country entirely from originating materials; Satisfying the applicable product-specific rules of origin (PSR) 1.3 Commitment between Vietnam and Canada regarding wood and wood product exports 1.3.3 Trade Remedies The Special Import Measures Act (SIMA) allows Canada to apply the following trade remedies: anti-dumping countervailing safeguards anti-circumvention taxes The situation of Vietnam's Wood and Wood products export activities in the context of CPTPP 2.1 Overview of Vietnam’s timber industry and timber’s export activities • Vietnam is one of the world’s largest exporters of timber and timber products • The growth rate of this commodity in Vietnam has increased steadily over the years in the past ten years Figure: Export turnover of Vietnam's wood and wood products in the period from 2009 to 2020 Despite challenges, Before CPTPP, Vietnam's exports of timber and wood products to Canada did show some minimal increases 2.3.2 After signing CPTPP • Tariffs: ⚬ Canada commits to eliminating import tariffs for 95% of tariff lines, equivalent to 78% of Vietnam's exports to Canada ⚬ Raw timber products (HS Code 44): 100% of Vietnam's export value will enjoy a 0% tariff rate ⚬ Processed wood products (HS Code 94): ranges from 0-3% 2.3.2 After signing CPTPP • In 2019: About 153 Million USD => noticeable rise of nearly 15 Million USD (10.7% increase compared to 2018) • 2019-2021: Robust growth ⚬ Despite the impact of the Covid-19 pandemic, 2021 ended at a pretty high number (Nearly 200 Million USD) ⚬ Wooden furniture accounted for the majority