Trade Agreements between Canada and Vietnam

Trade Agreements Between Canada and Vietnam: A Comprehensive Guide

Canada and Vietnam have enjoyed trade relations for many years. However, with the signing of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in 2018, the relationship between the two countries has become even stronger. This article will provide a comprehensive guide to the trade agreements between Canada and Vietnam.

The CPTPP

The CPTPP is a trade agreement signed by Canada and 10 other countries in the Pacific region, including Vietnam. The goal of the CPTPP is to increase trade between member countries by reducing tariffs and removing trade barriers.

For Canada, the CPTPP is an opportunity to expand its market access in the Asia-Pacific region. Vietnam, on the other hand, is the fastest-growing economy in Southeast Asia and is seen as a gateway to other countries in the region.

Under the CPTPP, Canada has committed to eliminating tariffs on 98% of its exports to Vietnam, including fish and seafood, agricultural products, and forestry products. In addition, Vietnam has agreed to eliminate tariffs on 94% of its exports to Canada, including garments, textiles, and footwear.

The CPTPP also includes provisions on intellectual property, labor, and the environment. These provisions are designed to ensure that trade between member countries is fair and sustainable.

The Canada-Vietnam Free Trade Agreement

In addition to the CPTPP, Canada and Vietnam have also signed a bilateral Free Trade Agreement (FTA). The Canada-Vietnam FTA was signed in 2014 and came into effect in 2015.

Under the FTA, Canada and Vietnam have committed to eliminating tariffs on a wide range of goods and services. The FTA also includes provisions on investment, intellectual property, and government procurement.

One of the key benefits of the Canada-Vietnam FTA is that it provides a predictable and stable framework for trade between the two countries. This stability is particularly important for businesses that rely on long-term investments and relationships.

The Canada-Vietnam Relationship

Canada and Vietnam have a long history of trade and cultural exchange. In recent years, the relationship between the two countries has grown stronger, particularly in the areas of trade and investment.

Vietnam is currently Canada`s largest trading partner in Southeast Asia, with bilateral trade reaching nearly $7.9 billion in 2019. Canadian companies are active in a wide range of sectors in Vietnam, including infrastructure, energy, and agriculture.

The signing of the CPTPP and the Canada-Vietnam FTA is expected to further enhance the trade relationship between Canada and Vietnam. With the removal of trade barriers and the increased predictability of the trade framework, businesses in both countries are expected to benefit from increased trade and investment.

Conclusion

The trade agreements between Canada and Vietnam are designed to increase trade and investment between the two countries. By reducing tariffs and removing trade barriers, these agreements provide a stable and predictable framework for businesses to operate within.

The CPTPP and the Canada-Vietnam FTA are expected to result in increased trade between Canada and Vietnam, benefiting businesses in both countries. With Vietnam`s growing economy and Canada`s desire to expand its market access in the Asia-Pacific region, the future of the Canada-Vietnam trade relationship looks bright.

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