Vietnam shelves TPP ratification after US election

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new-hcm-statueVietnam will back off from ratifying the Trans-Pacific Partnership (TPP) agreement due to political changes ahead in the US, but wants to maintain “good relations with Washington,” Prime Minister Nguyen Xuan Phuc said on November 17.

Initially, Vietnam’s legislature was almost certain to ratify the 12-nation TPP trade accord agreed on last year but had deferred it until after the US presidential election. The TPP was seen as a big boon for Vietnam’s exports and manufacturing economy, which has been receiving record foreign investment in the past due to its booming economy, cheap labour and relative stability.

But Republican Donald Trump’s victory and his protectionist agenda on the campaign trail has unnerved Asian economies. In fact, the entire TPP looks increasingly uncertain with a Republican Congress and an incoming president who had called the agreement a “disaster”.

“The United States has announced it suspends the submission of TPP to the parliament so there are not sufficient conditions for Vietnam to submit its proposal for ratification,” Prime Minister Nguyen Xuan Phuc told the National Assembly.

He, however, said that with or without the TPP, Vietnam was committed to further opening up its economy to the world. He raised his forecast of Vietnam’s annual export growth this year to eight per cent.

“We already signed 12 free trade agreements, so joining the TPP would have been good, but without joining TPP we will still continue to further the economic integration under programmes we have joined,” he said, adding that “the party, the state are implementing a policy aimed at diversification and multilateral ties, considering all countries as friends.”

 

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Reading Time: 1 minute

Vietnam will back off from ratifying the Trans-Pacific Partnership (TPP) agreement due to political changes ahead in the US, but wants to maintain “good relations with Washington,” Prime Minister Nguyen Xuan Phuc said on November 17.

Reading Time: 1 minute

new-hcm-statueVietnam will back off from ratifying the Trans-Pacific Partnership (TPP) agreement due to political changes ahead in the US, but wants to maintain “good relations with Washington,” Prime Minister Nguyen Xuan Phuc said on November 17.

Initially, Vietnam’s legislature was almost certain to ratify the 12-nation TPP trade accord agreed on last year but had deferred it until after the US presidential election. The TPP was seen as a big boon for Vietnam’s exports and manufacturing economy, which has been receiving record foreign investment in the past due to its booming economy, cheap labour and relative stability.

But Republican Donald Trump’s victory and his protectionist agenda on the campaign trail has unnerved Asian economies. In fact, the entire TPP looks increasingly uncertain with a Republican Congress and an incoming president who had called the agreement a “disaster”.

“The United States has announced it suspends the submission of TPP to the parliament so there are not sufficient conditions for Vietnam to submit its proposal for ratification,” Prime Minister Nguyen Xuan Phuc told the National Assembly.

He, however, said that with or without the TPP, Vietnam was committed to further opening up its economy to the world. He raised his forecast of Vietnam’s annual export growth this year to eight per cent.

“We already signed 12 free trade agreements, so joining the TPP would have been good, but without joining TPP we will still continue to further the economic integration under programmes we have joined,” he said, adding that “the party, the state are implementing a policy aimed at diversification and multilateral ties, considering all countries as friends.”

 

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