Tuna loin processing plant. (Photo: Stockfile)
Tuna industry does not see the benefit of being part of the CPTPP
Thursday, June 13, 2019, 17:50 (GMT + 9)
Of the seven countries that have ratified the CPTPP agreement (Comprehensive and Progressive Agreement for Trans-Pacific Partnership
), Japan, Canada and Mexico are the three markets that are currently in the top 10 of the largest tuna import market in Vietnam, while the rest are small importers of Vietnamese tuna. According to Vietnam Customs statistics, the total export value of Vietnamese tuna to CPTPP countries represented 12 percent of the total export value of Vietnamese tuna in 2018.
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), also known as TPP11 or TPP-11, is a trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.(Wikipedia)
The countries that participate in the CPTPP have agreed to completely eliminate import tariffs on 97% to 100% import tariff lines for products originating in Vietnam, according to the commitment of each country. Taxes on almost all exports from Vietnam, including seafood to other CPTPP countries, will be completely eliminated when the Agreement enters into force or according to the roadmap. Specifically, Vietnamese tuna products exported to CPTPP countries are the following:
- Australia: The tax applied on tuna products will be reduced to 0% as soon as the agreement enters into force (basic tax rate of 0%, except for pickled and processed tuna HS160414 from 5% to 0%)
- Canada: The tax imposed on tuna products will be of 0% as soon as the agreement enters into force (the basic capital tax is 0%)
- Chile: Taxes on tuna products will be reduced from 6% to 0% as soon as the agreement enters into force.
- Mexico: The tax applied on loins/frozen tuna products from Vietnam with code HS0304 will be reduced according to the 3-year program, from the base rate of 20% to 0%. In addition, taxes on processed tuna products in boxes with SA 16 code will be reduced according to a 16-year program: they will be maintained at a base rate of 20% from the first year to the fifth year and will be completely eliminated for 11 years from the sixth year; these products will be tax-free as of January 1 of year 16.
- New Zealand: the tax applied on tuna products will be reduced to 0% immediately.
- Japan: Taxes on fresh, frozen and canned tuna products (except bigeye tuna) in fresh, frozen and canned tuna fillets (except tuna / cod HS030487) will be reduced to 0% as soon as the agreement is effective. Particularly for bigeye, the tax rate of 3.5% will be gradually reduced in the 11-year period from the date of entry into force of this Agreement for Japan, and will be eliminated from April 1 of the eleventh year. For tuna / tuna steak products with code HS030487 the tax rate of 3.5% will be reduced annually during a period of 8 years from the date of entry into force of this Agreement for Japan, and such products will be exempted from taxes since April 1, 8th year.
Tuna processing line (Photo: stockfile)
Thus, in general, when the CPTPP enters into force, the export products of tuna from Vietnam to Japan, Mexico and Chile have many opportunities. However, the market is open but competitive. If the companies are not active, they can not take advantage. In addition, markets such as Japan and Mexico are also countries where the fishing and tuna industry is highly developed, the market share of Vietnames tuna products will not large
Source: Nguyen Ha/VASEP