32 countries to remove China from preferential tariff treatment on Dec. 1
TAIPEI (Taiwan News) — China Customs says 32 countries will no longer provide preferential tariff treatment to the world’s largest exporter from Dec. 1, and an economic expert says labor-intensive businesses will bear the brunt of the development.
According to a statement recently issued by the General Administration of Customs of China (GACC), 32 countries will remove China from their trade preference lists of beneficiaries of duty-free tariff treatment of certain products, Hong Kong media reported. The GACC applauded the move as “a recognition from other advanced economies that China does not belong to the bracket of low-income and lower-middle-income countries anymore and that Chinese products are competitive enough in the market that (they need) no protections.”
“We are ‘graduating’ from the GSP (Generalized System of Preferences) program and are ’sort of’ moving towards becoming a mature economy,” it stated.
The preferences were given to China starting in 1978, and some 40 countries have granted or are still giving it duty-free treatment on certain exports. Starting Dec. 1, 27 EU nations, the United Kingdom, Canada, Turkey, Ukraine, and Liechtenstein will no longer grant China this treatment, leaving the nation eligible for GSP trade benefits from only three countries — Norway, New Zealand, and Australia.
Chunghwa Economy and Finance Association Deputy Secretary General Tseng Chih-Chao (曾志超) told RFA that the end of duty-free market access to China will leave little impact on its overall exports. Labor-intensive and low-margin businesses, however, will bear the brunt, and that might speed up the relocation of production from China to other developing countries as a result, he said.
Anti-dumping duties on polyester filament yarn originating from China, India, Indonesia, and Malaysia
On October 13, 2021, the Ministry of Industry and Trade issued Decision No. 2302/QD-BCT on the application of official anti-dumping measures (CBPG) to a number of polyester filament products originating from China, India, Indonesia and Malaysia. Accordingly, the Ministry of Industry and Trade continues to maintain the anti-dumping tax previously applied under Decision No. 2080/QD-BCT dated August 31, 2021 to apply temporary anti-dumping tax on some polyester filament products from the above countries.
The Ministry of Industry and Trade started investigating the case from April 2020 on the basis of the request of the domestic manufacturing industry submitted in November 2019. The investigation process of the case is carried out in accordance with the provisions of the Law. Management of foreign trade and related regulations as well as the Anti-Dumping Agreement of the World Trade Organization. In the context of the Covid-19 pandemic, in order to facilitate the relevant parties to prepare sufficient information and data as well as to clarify the impact of dumping on the operation of the domestic manufacturing industry, including downstream manufacturing industries, the Ministry of Industry and Trade has extended the time limit for investigating the case to October 6, 2021.
The results of the official investigation showed a sudden increase in the amount of investigated goods imported from China, India, Indonesia and Malaysia. In particular, in the context of Covid-19, polyester filament yarn imports in the first 6 months of 2021 reached nearly 258,000 tons, up 37% over the same period in 2020. Dumping imported goods was the main cause of causing great damage to the domestic industry.
The application of official anti-dumping measures will contribute to creating an equal competitive environment for domestic industries, enhancing the autonomy of input materials, thereby enhancing value – added and competitiveness of Vietnamese products and enterprises in the global value chain. In addition, Vietnam has joined many Free Trade Agreements (FTAs), creating favorable conditions for many economic sectors, including textiles, to expand export markets. However, in order to enjoy tariff preferences, the domestic manufacturing industry must meet strict rules of origin according to each FTA. Therefore, increasing the initiative in the production of raw materials, meeting the requirements of origin will help the textile industry to take advantage of the benefits from FTAs.
In the coming time, the Ministry of Industry and Trade will continue to coordinate with relevant ministries and related parties to monitor the impact of trade remedies, production situation, supply-demand, prices, etc. to ensure a fair competitive environment with equality and convenience for the manufacturing industry in accordance with regulations.
According
to the General Statistics Office of Vietnam, Vietnam made $ 13.18
billion in the first six months of the year thanks to exports of textile
and garment products. Meanwhile, data provided by the Bangladesh Export
Promotion Bureau shows that Bangladesh earned $ 11.92 billion from
exporting ready-to-wear products during the same period. However, both
countries suffered a decline in exports of this commodity because of the
pandemic.
Bangladeshi
garment exporters explain to a Bangladeshi daily newspaper – that the
Covid-19 pandemic has left them lagging behind Vietnam. Mohammad Hatem,
Vice President of Bangladesh Knitwear Manufacturers and Exporters
Association (BKMEA) told : “Bangladesh’s garment industry has plummeted
during March, April and May due to activity. production and supply chain
are interrupted by the ban being enforced to stop the spread of
coronavirus ”.
“Vietnam’s
production activities are not too disrupted because it has better
control the spread of Covid-19” – Mr. Hatem said. Bangladesh, the second
largest garment exporter after China, fell 20.14% to $ 2.25 billion in
March and 85.25% to $ 375 million in April, the biggest drop in history.
Exporter of this country. In May, apparel export earnings improved and
stood at $ 1.23 billion but still suffered a 62% decline. In June,
exports showed signs of recovery, to $ 2.24 billion.
According
to the General Statistics Office of Vietnam, Vietnam made $ 13.18
billion in the first six months of the year thanks to exports of textile
and garment products. Meanwhile, data provided by the Bangladesh Export
Promotion Bureau shows that Bangladesh earned $ 11.92 billion from
exporting ready-to-wear products during the same period. However, both
countries suffered a decline in exports of this commodity because of the
pandemic.
Bangladeshi
garment exporters explain to a Bangladeshi daily newspaper – that the
Covid-19 pandemic has left them lagging behind Vietnam. Mohammad Hatem,
Vice President of Bangladesh Knitwear Manufacturers and Exporters
Association (BKMEA) told : “Bangladesh’s garment industry has plummeted
during March, April and May due to activity. production and supply chain
are interrupted by the ban being enforced to stop the spread of
coronavirus ”.
“Vietnam’s
production activities are not too disrupted because it has better
control the spread of Covid-19” – Mr. Hatem said. Bangladesh, the second
largest garment exporter after China, fell 20.14% to $ 2.25 billion in
March and 85.25% to $ 375 million in April, the biggest drop in history.
Exporter of this country. In May, apparel export earnings improved and
stood at $ 1.23 billion but still suffered a 62% decline. In June,
exports showed signs of recovery, to $ 2.24 billion.
According
to the General Statistics Office of Vietnam, Vietnam made $ 13.18
billion in the first six months of the year thanks to exports of textile
and garment products. Meanwhile, data provided by the Bangladesh Export
Promotion Bureau shows that Bangladesh earned $ 11.92 billion from
exporting ready-to-wear products during the same period. However, both
countries suffered a decline in exports of this commodity because of the
pandemic.
Bangladeshi
garment exporters explain to a Bangladeshi daily newspaper – that the
Covid-19 pandemic has left them lagging behind Vietnam. Mohammad Hatem,
Vice President of Bangladesh Knitwear Manufacturers and Exporters
Association (BKMEA) told : “Bangladesh’s garment industry has plummeted
during March, April and May due to activity. production and supply chain
are interrupted by the ban being enforced to stop the spread of
coronavirus ”.
“Vietnam’s
production activities are not too disrupted because it has better
control the spread of Covid-19” – Mr. Hatem said. Bangladesh, the second
largest garment exporter after China, fell 20.14% to $ 2.25 billion in
March and 85.25% to $ 375 million in April, the biggest drop in history.
Exporter of this country. In May, apparel export earnings improved and
stood at $ 1.23 billion but still suffered a 62% decline. In June,
exports showed signs of recovery, to $ 2.24 billion.
Minister of
Industry and Trade Trần Tuấn Anh (fifth from left) on June 18 met with
representatives from several European business associations to discuss
measures to speed up the signing of the EU-Việt Nam Free Trade Agreement
(EVFTA) and the EU-Việt Nam Investment Promotion Agreement (EVIPA) as
part of his working visit to the EU and Belgium. VNA/VNS Photo
BRUSSELS The European Council announced on Tuesday that it has
approved the European Union – Việt Nam Free Trade Agreement (EVFTA) and
the EU – Việt Nam Investment Protection Agreement (EVIPA), and assigned
the EU to sign the deals with Việt Nam on June 30 in Hà Nội
The EVFTA and EVIPA are the most ambitious agreements concluded between the EU and a developing country.
Once the EVFTA takes effect, over 99 per cent of tariff on goods from
both sides will be lifted. Việt Nam will remove 65 per cent of import
tariff on goods from the EU. Remaining tariffs will be removed in the
next decade.
Besides offering significant economic opportunities, the trade
agreement ensures that trade, investment and sustainable development go
hand in hand, by setting the highest standards of labour, safety,
environmental and consumer protection.
Meanwhile, the EVITA will help enhance the EU’s investment in Việt Nam.
Việt Nam is the EU’s second largest trade partner in ASEAN with a trade value of nearly 50 billion euros (about US$56 billion).
The FTA was initiated in June 2012 and negotiations on the deal concluded in 2015.
After legal review, the EU proposed dividing the FTA into the EVFTA and EVIPA in September 2017.
After being signed, the two deals will be submitted to the European Parliament (EP) for consent.
The EVFTA is expected to be approved by the EP later this year or early 2020.
Meanwhile, it will take at least two years for the EVIPA to be ratified by the EP and member parliaments. VNS
European Parliament may ratify EVFTA in June or July
Updated at Thursday, 04 Apr 2019, 16:43
The Hanoitimes – Both the EU and Vietnam are
going towards the right direction, while a dialogue mechanism is
important for both parties to deal with issues of difference.
The signing and ratification of the EU –
Vietnam Free Trade Agreement (EVFTA) may take place in June or July,
after the European Parliament (EP) completes its elections and starts
the new tenure, according to Bernd Lange, chairman of the EP’s committee
on International Trade (INTA).
Overview of the meeting. Source: quochoi.vn
The delay was due to the EU having to focus on some pending issues,
including the Brexit, Lange said in a meeting with Vietnam’s National
Assembly Chairwoman Nguyen Thi Kim Ngan in Brussels on April 3.
Meanwhile, Lange said he fully supports the signing and ratification of the EVFTA.
Overall, both the EU and Vietnam are going towards the right
direction, while a dialogue mechanism is important for both parties to
deal with issues of disagreement.
At the meeting, Ngan said Vietnam is focusing on realizing its
commitments made in the deal, adding that the National Assembly has
legalized those commitments.
Ngan expected Lange’s support in making the EVFTA and the Investment
Protection Agreement (IPA) between Vietnam and EU at the top of the
agenda of the newly elected EP.
According to Ngan, as a member of the International Labor
Organization (ILO), Vietnam has been working on revising the Labor Code
for better protecting laborers’ interests and rights.
The revised Labor Code is schedule to be submitted to the National Assembly in May for review and admendment.
The National Assembly is willing to work with representatives of the
INTA and other EP agencies to narrow the differences and reach a mutual
perception, Ngan stated.
Vietnam has conducted a full spectrum lobbying plan to have the EVFTA
ratified as soon as possible after the United States withdrew from the
landmark Trans-Pacific Partnership deal in January 2017.
The EVFTA, if signed, would become the first trade deal between the
EU and a developing country in Asia. In addition to the deal, the EU
currently has two FTAs with Singapore – subject to approval, and Japan,
which came into force in early February.
Under the Vietnam’s EVFTA commitment, the country would remove 65% of
import tariffs for European goods right after the deal becomes
effective. The remaining would be gradually removed in the next 10
years.
In return, the EU is committed to removing 71% of import tariffs for
Vietnamese items, and the remaining in the next seven years.
Over the past ten years, trade turnover between the EU and Vietnam
has increased 10-fold to US$53 billion in 2018. The EU is currently
Vietnam’s third largest trading partner, while Vietnam is the bloc’s
19th largest partner in the world, and the second largest in Southeast
Asia, behind Singapore, according to the Vietnam Chamber of Commerce and
Industry (VCCI).
Bruno Angelet, Ambassador and head of the European Union Delegation
to Vietnam, told VIR that the European Council is now considering the
signing of the EU-Vietnam Free Trade Agreement (EVFTA), which will then
be submitted to the European Parliament for adoption.
In October 2018 the European Commission (EC) adopted the EVFTA and
the EU-Vietnam Investment Protection Agreement (IPA). The two texts
were then submitted to the European Council the following month for
official signature.
“Now in Brussels, member states in the council are reviewing the
agreement and we hope that by February or March 2019, they can endorse
the deal. I am sure the deal will be signed,” Angelet confirmed. “If
everything goes smoothly, EU Trade Commissioner Cecilia Malmström will
come to Vietnam for the signing.”
But Angelet noted that in May 2019, the European bloc will have an
election for a new parliament. “The latest time the EVFTA can be
ratified is in April. If the existing parliament cannot sign in April,
or maybe in May or June, then the next parliament will do so.”
In addition to considering the EVFTA signing, the EU will have to
push itself to adopt its bilateral FTA with Singapore signed in October
2018, its first FTA with an ASEAN nation.
Once the European Council agrees to sign, the next step will be European Parliament consent.
“In practice this means the parliament will have very little time for
deliberations before the end of its current term in April 2019, which
means ratification and entry into force of the EVFTA may have to wait
until autumn 2019, and the IPA will take longer due to the requirement
for member state ratification,” the parliament said on its website.
However, according to Vietnamese Deputy Minister of Foreign Affairs
Bui Thanh Son, the Vietnamese government will continue working with the
European Union to “sign and adopt the EVFTA as soon as is feasibly
possible, especially before May 2019 when the EU parliament election
take places.”
Great benefits
The EVFTA will eliminate virtually all tariffs on goods traded
between the two sides (see below). It also includes a strong,
legally-binding commitment to sustainable development, including the
respect of human rights, labor rights, environmental protection and the
fight against climate change, with an explicit reference to the Paris
Agreement.
According to the European Parliament, the EU hopes that the FTA with Vietnam will boost trade and investment.
“The FTA is also an important stepping stone to a wider EU-Southeast
Asia trade deal, something which the EU has been striving towards for
nearly a decade,” the parliament said. “Vietnam, a fast-growing and
competitive economy whose bilateral trade with the EU has quintupled
over the past 10 years, is equally keen on the deal, which could
potentially boost its GDP by 15 percent.”
“The trade and investment agreements with Vietnam are exemplary of
Europe’s trade policy. They bring unprecedented advantages and benefits
for European and Vietnamese companies, workers and consumers. They take
fully into account the economic differences between the two sides,” said
Jean-Claude Juncker, President of the EC.
In particular, according to the EC, the EVFTA will create parity for EU companies and innovative products.
“The EVFTA will level the playing field between state-owned
enterprises and private enterprises when state-owned enterprises are
engaged in commercial activities,” said an EC document on the EVFTA.
“There are also rules on transparency, and consultations on domestic
subsidies. These are the most ambitious rules that Vietnam has ever
agreed to in an international deal.”
On intellectual property rights, Vietnam has committed to a high
level of protection going beyond standards of the World Trade
Organization Trade-Related Aspects of Intellectual Property Rights
agreement. With this, EU innovations, artworks and brands will be better
protected against being unlawfully copied, including through stronger
enforcement provisions.
The EU pharmaceutical sector in particular will benefit from improved
protection of test data and from the possibility to get an extension of
the term of the patent up to two years if there are delays in marketing
authorization.
Vietnam has also taken on ambitious commitments concerning the
procurement of pharmaceutical products, for instance allowing companies
with European capital to import and sell medicines to distributors and
wholesalers within the country.
The CPTPP trade deal is set to become a reality with a sixth country, Australia, having lodged its ratification documents.
The deal will enter into force on
December 30, Trade Minister David Parker announced this morning after
receiving Australia’s paperwork triggering a 60-day countdown.
“This is a momentous day, not just for New Zealand…but for world trade,” Parker said.
The World Trade Organisation was in a parlous state at present and the alternatives were plurilateral agreements.
“The most important one on offer at
the moment is the CPTPP…It has benefits that will spread throughout the
economy to every person in New Zealand from the factory floor to the
farm owner, to all of the other service industries that rely upon our
export industries.”
The paperwork was handed over at the Beehive by Australian High Commissioner Ewen McDonald.
New Zealand is the depositary of the deal, which was launched in 2008.
McDonald said he acknowledged the leadership of New Zealand in the CPTPP together with Japan and Australia.
Now officially called the
Comprehensive and Progressive Agreement on Trans Pacific Partnership,
the other countries that have ratified are Japan, Canada, Mexico, and
New Zealand.
The countries yet to ratify are Chile, Malaysia, Peru, Vietnam and Brunei.
The deal will mark the first free
trade deal for New Zealand with Japan, the third largest economy in the
world, and Mexico and Canada.
The first round of tariff cuts for
New Zealand exporters will take effect on December 30 and because of the
timing, a second round will take place on January 1, 2019, Parker said.
“New Zealand’s ratification means
that from day one our businesses will be able to take advantage of
improved trading conditions and lower tariffs,” Parker said.
Following
years of protest and debate, six countries have ratified the CPTPP and
it will come into effect from December 30 this year. Photo / Lavinia
Bishop
“Economic modelling shows exports, the New Zealand standard of living, and wages, will increase as a consequence,” Parker said.
The CPTPP markets are collectively home to 480 million consumers and comprise 13.5 per cent of world GDP.
The United States led the TPP
negotiations under President Barack Obama but withdrew from the deal
after Donald Trump was sworn in as President in January 2017.
Negotiations among the remaining 11 countries were held throughout 2017 and a decision was made to continue without the US.
Labour opposed the TPP in Opposition but made enough changes after taking power to announce its support about a year ago.
It was renamed the CPTPP at the instigation of Canada.
Parker said the CPTPP was a “fantastic protection and advancement of New Zealand’s trading interests.”
“The protective benefits of this
agreement and the signal it send to the rest of the world that there is a
new rules-based order out there can buy into if they want is an
incredibly signal at this particular time.”
Parker said it was a high quality agreement and he upgraded his previous estimate of the pact from a seven out of 10.
“I reckon I’m up to an eight or
nine now because the relative degradation of other things means it is
just so much more important than it was.
“It is a high quality agreement and
if we were offered other agreement that were this high quality we would
be in them with a flash.”
Citing some specific benefits, Parker said fish exports to Mexico currently face 20 per cent tariffs.
Buttercup squash growers, mainly is Gisborne, would be saving $1.5 million a year in tariff reductions.
Tariffs on beef into Japan will reduce from 38 per cent to 9 per cent over a longer period of time.
Tariffs on wine into Canada will go immediately.
Horticultural exports, including carrot and radish seed, would have much lower tariffs.
Other countries that have expressed
an interest in joining the CPTPP include Colombia, Britain, South
Korea, Indonesia, Thailand and China.
TPP-CPTPP TIMELINE
1999
National trade minister Lockwood Smith clinches NZ-Singapore Closer
Economic Partnership (CEP). But Clinton’s US rejects invitation by NZ to
expand to five-party trade talks including Australia and Chile.
2001
New Zealand – Singapore Closer Economic Partnership (CEP) begins after new Labour passes related laws.
2005
Chile and Brunei join CEP making it the P4, also known as Trans Pacific
Strategic Economic Partnership – but it is minus an investment and
financial services chapter.
2007
July: Trade minister Phil Goff talks to US Trade Representative Susan
Schwab in Cairns about the US joining P4, which it scheduled to start
investment and financial services talks.
2008
September: US Trade Rep Schwab announces from New York US will enter
negotiations to become a full partner in the TPP (P4), under outgoing
President, George W Bush.
November: New Trade Minister Tim Groser announces at Apec in Peru that
Australia, Vietnam and Peru will join negotiations, yet to be started.
2009
February: New US President Barack Obama delays joining until his Administration assesses it.
November: United States Administration confirms it will join TPP talks.
2010
March: First round of TPP talks among eight countries begins in Melbourne
October: Malaysia joins TPP talks.
November: Japan announces it will consider joining TPP talks.
2011
March: Tsunami catastrophe delays Japan’s consideration.
November: Obama hosting Apec Hawaii holds TPP meeting and Honolulu Declaration agrees to comprehensive TPP.
2012
June: Mexico and Canada announce they will join TPP talks, making 11. Japan still considering.
2013
March: Japan under PM Shinzo Abe announces it will join TPP talks.
2015
October: TPP talks conclude in Atlanta, US.
2016
Countries begin domestic processes to ratify TPP but in the US,
presidential candidates Donald Trump and Hillary Clinton promise to
withdraw from the deal. Labour in NZ decides to oppose TPP.
2017
January: President Donald Trump withdraws from TPP.
November: TPP becomes CPTPP ahead of Apec summit in Vietnam and Labour
agrees to support it with modifications. Planned CPTPP signing by
leaders at Apec cancelled after no-show at meeting by Canada.
2018
March: CPTPP signed by ministers in Chile. Domestic ratification processes begin.
October: Sixth signatory, Australia, triggers entry into force of CPTPP on December 30.
According
to the General Statistics Office of Vietnam, Vietnam made $ 13.18
billion in the first six months of the year thanks to exports of textile
and garment products. Meanwhile, data provided by the Bangladesh Export
Promotion Bureau shows that Bangladesh earned $ 11.92 billion from
exporting ready-to-wear products during the same period. However, both
countries suffered a decline in exports of this commodity because of the
pandemic.
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