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On the morning of June 25th, the National Assembly passed a Resolution approving the accession documents of the United Kingdom of Great Britain and Northern Ireland to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Originally signed in 2018, the CPTPP came into effect for Vietnam in early 2019. This agreement includes 11 member countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, Singapore, New Zealand, Peru, and Vietnam.
Negotiations between CPTPP countries and the UK concluded in March 2023, with the agreement signed in July 2023 for the UK’s membership in this trade bloc of 12 economies. Each CPTPP member state must sequentially approve related documents for formal recognition. With the Resolution passed, Vietnam’s National Assembly agrees to apply all provisions of the UK’s CPTPP accession documents, as outlined in Resolution No. 72/2018 of the National Assembly regarding the approval of the CPTPP agreement and its related documents for the UK.
The National Assembly has tasked the Government with reviewing relevant legal texts to promptly amend, supplement, or enact new regulations, ensuring legal system consistency and adherence to the commitments in the UK’s CPTPP accession documents. The Prime Minister is responsible for approving and directing relevant central and local agencies and organizations to implement the UK’s CPTPP accession plan.
Chairman of the Foreign Affairs Committee provided an explanation, noting that the Standing Committee of the National Assembly assessed the UK’s commitment to open its market to Vietnam higher than that of other CPTPP countries and even surpassing commitments under the UK-Vietnam Free Trade Agreement (UKVFTA) in some significant aspects for Vietnam.
Consequently, when UK joins the CPTPP, Vietnam’s industrial sectors is expected to be recognized by this country as operating under market economic conditions.
Vietnam’s approval during the 7th session places it among the first six CPTPP countries to approve the UK’s accession, demonstrating Vietnam’s proactive and responsible approach in promoting bilateral trade and investment relations with the United Kingdom.
The UK has explored the possibility of joining the CPTPP since 2018 to boost exports post-Brexit, formally applying for membership in 2021. The UK government estimates this agreement will help reduce import tariffs on automobiles, alcohol, and dairy products. Over the long term, the UK’s GDP is expected to increase by an additional £1.8 billion (USD 2.2 billion) annually.
The CPTPP serves as a supplementary agreement alongside the Free Trade Agreements (FTAs) the UK already has with most member countries. British businesses will gain additional trade clause options. Post-Brexit, the UK has concluded new trade agreements with Australia, New Zealand, and Japan.
To date, Singapore, Japan, and Chile have completed the approval procedures for the UK’s accession to the CPTPP. Other countries such as New Zealand, Brunei, Malaysia, and Peru are expected to finalize this process in the coming months.
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