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TPP Trade Deal: Gains and challenges for Asia-Pacific countries

JaiMin

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The Trans-Pacific Partnership is the biggest trade agreement in history, reducing tariffs and other forms of protectionism in a dozen countries making up about 40 percent of the global economy with economic output of almost $30 trillion.

The White House estimates it will eliminate 18,000 tariffs on U.S.-manufactured goods, while giving everyone from Vietnamese shrimpers to New Zealand dairy farmers cheaper access to markets across the Pacific. Critics, particularly in the U.S., say it will kill American manufacturing jobs, reduce environmental standards and raise drug prices.

The deal sealed Monday in Atlanta came after more than five years of negotiations between the TPP nations -- the U.S., Canada, Japan, Australia, Brunei, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.


The agreement must still be ratified by lawmakers in the TPP nations before it can take effect and President Barack Obama is likely to face a fight to secure passage by the U.S. Congress.

Japan:
*Japanese car and auto-parts makers may be the biggest winners, as they get cheaper access to the U.S., the industry’s biggest export market
* Japan was forced to reduce some of the protections granted to its rice farmers, creating a non-tariff import quota of one percent of its total consumption
* Livestock farmers may be harder hit as tariffs on beef will be cut to 9 percent over 16 years from 38.5 percent, while pork tariffs will also be slashed

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Australia:
* The deal will remove about A$9 billion of import taxes from Australian trade, Prime Minister Malcolm Turnbull said
* Australia will gain access to the U.S. sugar market while Japan will
also reduce levies on the product and the cut in the beef tariff will help Australian ranchers
* Seafood and most horticulture products will see tariffs dropped, while preferential quota access will be created for grains, cereals and rice
* Australia and New Zealand successfully pressured the U.S. to compromise on the amount of time pharmaceutical companies would get protection for new biotech drugs, granting companies a minimum of five years rather than the 12 years of protection pushed by the U.S. That could lead to cheaper drug prices and more competition
* Reduced tariffs on everything from iron and steel products, to pharmaceuticals, machinery, paper and auto parts will help Australian manufacturers

New Zealand:
* Tariffs due to be eliminated on 93 percent of New Zealand’s trade with its TPP partners representing annual savings of about NZ$259 million ($168 million), Trade Minister Tim Groser said.
* The dairy industry, which accounts for about a quarter of exports, will see savings of about NZ$102 million a year. Some tariffs to remain in key markets such as the U.S., Japan, Canada and Mexico. Though New Zealand will get preferential access to new quotas, Canada only agreed to set foreign quotas for 3.3 percent of it dairy market over five years
* Tariffs on beef exports will be eliminated with the exception of Japan where they will drop to 9 percent from 38.5 percent, he said. Tariffs on all other exports including fruit, seafood, wine and sheep meat will be eliminated
* “While I am very disappointed that the deal falls far short of TPP’s original ambition to eliminate all tariffs, there will be some useful gains for New Zealand dairy exporters in key TPP markets such as the U.S., Canada and Japan,” John Wilson, chairman ofFonterra Cooperative Group Ltd., the world’s biggest dairy exporter, said in a statement.


Vietnam:
* Vietnam to be among the biggest winners, according to the Eurasia Group, with the agreement potentially boosting GDP by 11 percent by 2025, with exports growing 28 percent in the period as companies move factories to the low-wage country, the report said.
* Reduced import duties in the U.S. and Japan will benefit country’s apparel manufacturers, whose low labor costs have enabled them to grab business from China. Still, impact may be limited as Vietnam will still face strict rules-of-origin on materials.
* Fishing industry to benefit from elimination of import tax on shrimp, squid and tuna, now averaging 6.4%-7.2%
* Eliminating import taxes on pharmaceutical products from the current average of about 2.5% will lead to tougher competition between Vietnamese domestic companies and foreign companies. TPP will also increase patent protection, restricting Vietnam companies access to new products as well their ability to produce new drugs.

Malaysia:
* Malaysia’s state-owned enterprises may suffer from the deal which calls for equal access to government procurement
* Electronics, chemical products, palm oil and rubber exporters are among beneficiaries. Malaysia is the world’s second-biggest palm oil producer and one of the biggest growers of rubber


Source: TPP Trade Deal: Who Stands to Gain, Suffer in Asia-Pacific - Bloomberg Business


@Viet, @Viva_Viet , @Yorozuya , @Carlosa, @Rechoice, @Nihonjin1051 , @somsak, @biendong , @DaiViet , @Cossack25A1, @Zero_wing and all...

Preview and summary of 30 chapters include in the TPPs that in our news government sites: @Yorozuya

Chương 1 Các điều khoản ban đầu và định nghĩa chung
Chương 2 Thương mại hàng hóa
Chương 3 Dệt may
Chương 4 Quy tắc xuất xứ
Chương 5 Hải quan và thuận lợi hóa thương mại
Chương 6 Vệ sinh và kiểm dịch động thực vật
Chương 7 Hàng rào kỹ thuật đối với thương mại (TBT)
Chương 8 Phòng vệ thương mại
Chương 9 Đầu tư
Chương 10 Thương mại dịch vụ qua biên giới
Chương 11 Dịch vụ tài chính
Chương 12 Nhập cảnh tạm thời của khách kinh doanh
Chương 13 Viễn thông
Chương 14 Thương mại điện tử
Chương 15 Mua sắm chính phủ
Chương 16 Chính sách cạnh tranh
Chương 17 Doanh nghiệp nhà nước và hoạt đông độc quyền
Chương 18 Quyền sở hữu trí tuệ
Chương 19 Lao động
Chương 20 Môi trường
Chương 21 Hợp tác và Nâng cao năng lực
Chương 22 Cạnh tranh và Tạo thuận lợi kinh doanh
Chương 23 Phát triển
Chương 24 Doanh nghiệp vừa và nhỏ
Chương 25 Gắn kết môi trường chính sách
Chương 26 Minh bạch hóa và Chống tham nhũng
Chương 27 Các điều khoản về hành chính và thể chế
Chương 28 Giải quyết tranh chấp
Chương 29 Ngoại lệ
Chương 30 Các điều khoản cuối cùng

Source; Vì sao TPP được coi là hiệp định của thế kỷ 21 - VnExpress Kinh Doanh
 
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Please Viets. Do not try to "jerk off" or have wet dreams on the TPP. I know you Viets are too excited in bed about this new milestone of TPP. Please calm down.
 
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Please Viets. Do not try to "jerk off" or have wet dreams on the TPP. I know you Viets are too excited in bed about this new milestone of TPP. Please calm down.

They are not exciting about TPP, they are not main benefactors but companies and enterprises. The Viet excited is the winning of reformist faction in VCP government and the losing of pro-China conservative faction contribute to Vietnam economic lag. Escape China influence is every Viet's dream. No more trade deficit, no more bad/poison products, no more bullying. Truong Chinh and Nong Duc Manh were known for pro China.
 
Please Viets. Do not try to "jerk off" or have wet dreams on the TPP. I know you Viets are too excited in bed about this new milestone of TPP. Please calm down.

Why are you biased to your mother land, not to your fatherland ? don't forget that you've claimed that your father is Viet and your mother is Chinese ?

Truong Chinh and Nong Duc Manh were known for pro China.

Truong Chinh is dead,Nong Duc Manh is retired. useless people.
 
Why are you biased to your mother land, not to your fatherland ? don't forget that you've claimed that your father is Viet and your mother is Chinese ?



Truong Chinh is dead,Nong Duc Manh is retired. useless people.
The "motherland" (China) is much more important with alot more potential to affect the world than the "fatherland" (Vietnam) could. Vietnam is just too small for its eternal survival. You either expand your land territory like USA or Imperial Japan did or you merge with another country. Vietnam so far is still trying to follow behind somebody else's lead.
 
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The "motherland" (China) is much more important with alot more potential to affect the world than the "fatherland" (Vietnam) could. Vietnam is just too small for its eternal survival. You either expand your land territory like USA or Imperial Japan did or you merged with another country. Vietnam so far is still trying to follow behind somebody else's lead.

funny logic.

Joining to TPP is served for Vietnamese people interest. Simply put, the benefits of the TPP coming into effect outweigh the costs in a huge way. Particularly, the benefits for one country—Vietnam—are huge.

Trans-Pacific Partnership: Do it for Vietnam | The Diplomat
 
He may be chinese or may one of sample of pro chinese viet. During Le Duan on power, he bursted about 50,000 pro chinese in vcp. Some sources claimed 300,000 pro chinese were bursted.

I dont know how many pro chinese viet nguyen tan dung bursted on his term. If i am on power i will make sure zero percent pro chinese viet in vcp governtment. I dont like them even on virtual chat.

Anyway, we winning. The pro chinese will either have to convert or ride boat to china beg for citizenship and will be treated as jungle animal there (according to some chinese here said chinese sees viet as jungle animal.) their families girls we will export to korea as wives houses. As what is called tru di tam toc hehe :)

Bursted

Vietnamese journalist jailed on charge of spying for China | Media | The Guardian
 
TPP is a major step forward for VN. it´s more than economy.
 
He may be chinese or may one of sample of pro chinese viet. During Le Duan on power, he bursted about 50,000 pro chinese in vcp. Some sources claimed 300,000 pro chinese were bursted.

I dont know how many pro chinese viet nguyen tan dung bursted on his term. If i am on power i will make sure zero percent pro chinese viet in vcp governtment. I dont like them even on virtual chat.

Anyway, we winning. The pro chinese will either have to convert or ride boat to china beg for citizenship and will be treated as jungle animal there (according to some chinese here said chinese sees viet as jungle animal.) their families girls we will export to korea as wives houses. As what is called tru di tam toc hehe :)

Bursted

Vietnamese journalist jailed on charge of spying for China | Media | The Guardian
Lol I like the part of exporting chinese girls to korea ha ha ha...funny ...best joke of the day.

Reedited, I just notice you mean viet girls of pro china faction. Bad joke.
 
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@JaiMin thanks bro for the links.

Malaysia No 2 beneficiary from TPP after Vietnam, says Credit Suisse | New Straits Times | Malaysia General Business Sports and Lifestyle News

Malaysia No 2 beneficiary from TPP after Vietnam, says Credit Suisse

BY RUPA DAMODARAN

KUALA LUMPUR: Malaysia will follow Vietnam as a close second in terms of biggest long-term beneficiaries from the recently concluded Trans Pacific Partnership says Credit Suisse. Vietnam could see a 10 per cent boost to GDP by 2025, while Malaysia could see a 5 per cent boost while Singapore is likely to be a relatively smaller beneficiary. The TPP covers 12 countries - Australia, Brunei, Japan, Malaysia, New Zealand, Singapore, Vietnam, the US, Canada, Mexico, Peru and Chile. Economist Michael Wan from the Singapore-based research house, expects the manufacturing sector to be the biggest beneficiary in Vietnam and Malaysia. While there could be a slight negative impact on non-TPP Asian countries, the benefits could be sizeable if these countries eventually join the TPP, with GDP boosts ranging from 2 per cent to 7 per cent. "The impact on non-TPP Asian countries is likely to be slightly negative due to diversion of trade flows and FDI,"he said, adding that the negative impact should generally be quite small and limited as a share of their GDP. For instance, Thailand is forecast to see just 0.4 percentage points GDP shaved off by 2025, and China 0.2 percentage points during the same period. The Philippines could see a 6.4 per cent boost to GDP by 2025 and Thailand could see a 7.6 per cent boost to GDP should they join. Based on a Peterson Institute study, sectors which could gain the most include Vietnam's textiles, apparel and footwear, electronics, and construction, Malaysia's electronics, apparel and footwear and Singapore's machinery and transport-related sectors. Fitch Ratings said while the TPP will be a significant contributor to economic integration over the long term, it is unlikely to be a game changer for the economic prospects in the short term. "Should the TPP be ratified, the most significant consequence will be in setting the rules and guidelines under which economic integration deepens around much of the Pacific Rim. "This will, in turn, set a powerful precedent for other global trade and investment protocols." While the TPP would likely be positive to varying degrees for those within the pact, it may divert trade and investment from non-participating countries. The net impact on global activity may be small as increased trade within the TPP is offset by trade diverted from countries outside the bloc. One study estimated a gain in global GDP of about 0.3 per cent relative to a baseline without the deal by 2025. Within APAC, China, Thailand, Philippines, Korea and Indonesia are notable non-participants for now. "Countries such as Thailand and Indonesia, which have been looking to boost foreign investment and exports, may come under pressure to join TPP should FDI and trade flows from Japan and the US shift to member countries such as Vietnam and Malaysia."

Selanjutnya di : Malaysia No 2 beneficiary from TPP after Vietnam, says Credit Suisse | New Straits Times | Malaysia General Business Sports and Lifestyle News
 
TPP will bring more benefits than problems to Vietnam: trade minister | Business | Thanh Nien Daily

TPP will bring more benefits than problems to Vietnam: trade minister
Thanh Nien News

While the freshly-inked Trans-Pacific Partnership (TPP) has stirred controversy, the Vietnamese government believes it would do more good than harm in both economic and social terms.
“Most of other TPP nations do not compete directly with us, except in a few farming sectors,” Vu Huy Hoang, Minister of Industry and Trade told Vietnamese media after talks were wrapped up on October 5.
“Major markets such as the US, Japan and Canada will eliminate import tariffs, which will give a major boost for our exports. Key sectors including garment, textile, footwear and seafood are very likely to grow in terms of turnover,” he said.
Hoang expected the country’s garment and textile industry to attract investment in material production projects, thanks to huge exports.
A rule of origin under the deal states that apparel exports within the trade zone must use raw materials, from the yarn forward, either made locally or imported from other TPP members.
Hoang said this rule would increase the use of local materials and help Vietnam add value to the production chain, which would allow the textile and garment sector to "grow sustainably."
At the moment, Vietnam mostly cuts and sews yarn, fabrics or fibers imported from China.
As the TPP nations make up about 40 percent of the global economy, the agreement is expected to create new supply chains and Vietnam would have many opportunities to join these chains, Hoang said.
Many tech giants such as Samsung, Intel, Microsoft and LG have invested in Vietnam, turning the country into an important place in the production chain for hi-tech items including computer microprocessor and smartphone.
“Following the TPP, this trend may grow and help our country develop the electronics and hi-tech sector. This is a great opportunity to move Vietnam’s economy to a higher level in the next five to 10 years,” said Hoang.
The 12-member trade pact is forecast to add US$23.5 billion to Vietnam’s GDP in 2020 and $33.5 billion in 2025. It would also increase the country’s exports by $68 billion in 2025.
As Vietnam’s export and import markets currently depend too much on Eastern Asian markets including China and South Korea, the TPP, along with other deals with the European Union and the Eurasian Economic Union, would give Vietnam an opportunity to have a more "balanced" market strategy, the trade minister said.
Hoang said the commitments in the TPP would force Vietnam to cut red tape, review policies to make them more transparent and less surprising, thus improving the country’s business climate and helping it attract more foreign and local investment.
“So, we believe that foreign investment will rise, not only in sectors producing products for export but also in other ones including finance, banking, and real estate, after the deal is signed,” he said.
The intensification of intellectual property right protection under the pact could also help the country lure more investment in intellectually-intensive areas like pharmaceuticals, according to Hoang.
Husbandry to be hit
But the trade minister warned that the livestock industry would face the biggest challenge under the TPP as its competitiveness is now low.
Van Duc Muoi, gerenal director of Vissan, a leading meat processor, agreed.
“Eighty five percent of livestock is now being bred on small-sized farms and only 15 percent is bred on large-scale farms,” said Muoi.
He said though Vietnam has the world’s third largest number of female pigs with 4.5 million ones, its pork output ranks 15th-16th.
“Low productivity makes Vietnamese pork prices higher than other countries’, so it will be difficult for local pork to compete with foreign one following the TPP,” said Muoi.
Muoi said the deal would force the livestock industry to change and fix its weaknesses, otherwise it will not survive.
The trade minister is well aware of this.
Vietnam would have to restructure its agricultural sector by applying high technology and switching to large-scale farms for cultivation and livestock breeding to reduce production costs and easily control quality and hygiene, Hoang said.
He said the TPP would also benefit Vietnam in social terms with more jobs to be created and employees’ income to be raised, thus reducing poverty.
After the conclusion of the TPP talks, the participating nations would review legal procedures to prepare for the official signing and submit to concerned agencies for approval, Hoang said, adding that the processes often take at least 18 months.
 
So some more details are slowly getting revealed: This article shows that Vietnam does seem to have won some favorable exemptions, as predicted by the prophet @NiceGuy.

Vietnam to keep coal, crude export taxes under TPP, some state firms exempt| Reuters

@Viva_Viet @JaiMin, can you copy and paste the whole article here and make some comments?

I have to get back to doing some school work.

FYI @Nihonjin1051, @tranquilium

That makes more sense. As the new observed, Vietnam kept its taxes on coal and petro export. It is reasonable to argue that if Vietnam can negotiate these, then Japan would have kept its barrier in agriculture sector. By the same train of thought, US would have kept a large percentage of its current trade tariff as well.

Look, I was among the group of people expressing surprise that a TPP deal involving "total lift of tariff among signing nations" can happen at all, let alone this quickly. From this news, we can surmises that what really happened is that some of the more ambitious aspect of TPP (like integrating the supply chain from the signing nations) is curbed in favor of the current status quo. I have no doubt that some agreements are reached, but judging from the speed of negotiation, I would say the majority of the status quo is likely preserved.

Now we just need to wait for announcement regarding to the following sectors:

1. Automobile sector agreement between Japan and US.
2. IP deal

The Chinese users can relax and watch the show now. Now we know that not much here is actually China's concern. To elaborate, the Chinese political concern for TPP is that if countries like Vietnam and Japan agree to a full tariff lift, due to having a more skewed industrial and economic structure, this two nations will become increasing dependent on US, which is against Chinese interest in the pacific area. However, as long as Vietnam and Japan do not surrender their core interests, then TPP will be another economic agreement and nothing special.
 
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