UK commits to cut 94.4% of tax line for Vietnam after CPTPP takes effect on its territory

The UK is set to cut 94.4 % of tax lines for Vietnam once the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) takes effect on its territory, according to Minister of Industry and Trade Nguyen Hong Dien.

Reporting to the National Assembly (NA) on June 8, Mr. Dien said many key export farm produce of Vietnam such as rice, seafood and cassava powder will be eligible to lower tax rates compared to the UK’s commitments in the UK-Vietnam Free Trade Agreements (UKVFTA).

For example, the UK commits to gradually increase the import quota of Vietnamese rice from 3,300 tons in the first year the CPTPP takes effect in the UK to 17,500 tons from 2030 with the tax rate of 0%, almost doubling the rice quota applicable to other CPTPP signatories

Tuna, another key export product of Vietnam, will also be exempted from tax since the effective date of the UK's CPTPP membership.

He also reported that the UK has officially recognized Vietnam’s market economy status, creating favorable conditions for the exports of Vietnamese products to the country.

The UK officially submitted its application to join the CPTPP on February 1, 2021, after it concluded negotiations with all CPTPP member countries to join the CPTPP on 31 March 2023 and signed the Protocol of Accession on 16 July 2023. Entry into force of the agreement will take place once the UK and CPTPP Parties have finished their legislative processes.

The National Assembly of Vietnam is expected to consider and decide on the ratification of the document on the UK's accession to the CPTPP at the ongoing seventh session, which opened on May 20. .