(vasep.com.vn) The Trans-Pacific Partnership (TPP) is currently being negotiated between 12 countries in which the U.S. and Japan are leading importers of Vietnam seafood, making up 40 percent of Vietnam's total seafood export value.
In 2013, the U.S, the largest importer of Vietnam seafood, imported US$1.5 billion of Vietnam seafood, making up 22.6 percent of the country's total seafood exports. Import duty imposed by the U.S. on Vietnam seafood imported into the market is relatively low. The duty rate on live fish is 0.3 percent and 4.7 percent for processed seafood. Thus, preferences from TPP on Vietnam seafood exporters to the U.S. are not much.
However, TPP creates a lot of advantages to Vietnam seafood exporters to Japan because TPP helps reduce import duty imposed by Japan on Vietnam seafood products imported into the market. Despite FTA signed between Vietnam and Japan, Vietnam seafood exporters to Japan are suffering higher import duties compared to other suppliers to Japan. For instance, import duty imposed on Vietnam tuna to Japan is in the range of 6.4 – 7.2 percent while the duty on tuna imported from Thailand and Philippines to the market is zero percent.
Besides, TPP will support Vietnam seafood enterprises in importing raw material for processing. In recent years, due to lack of raw fish, Vietnam seafood enterprises must import raw material from other countries. However, they face high import duty: 15 percent with live fish and 30 percent with processed seafood. When TPP takes into effect, it will help Vietnam seafood exporters pay lower import duty to import raw material for processing and reexporting.