TPP To Open The Vietnamese Market

Wednesday, April 27th, 2016 | 155 Views

With the Trans-Pacific Partnership (TPP) set to eliminate the country’s tariffs on imports, the emerging Vietnam market will soon be opened to all players for agricultural and dairy products.

The TPP is a free-trade agreement between 12 Pacific Rim countries (Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, US and Vietnam) that seeks to lower trade barriers and tariffs and enhance trade and investment among the partner countries.

The economic situation for many in Vietnam is improving today, and with this is an increase in demand for ingredient and other dairy products. These include skim milk powder, whey, formulas, and cheese.

However, the country’s current average tariff on agricultural and dairy products is about 15 to 20 percent, making it difficult for interested parties to make much headway in the local market.

The TPP therefore will open up the Vietnam market in due time, as under the free trade agreement, the country will need to gradually reduce and ultimately eliminate these tariffs. This will level the playing field for all who want a share, especially for TPP partner countries such as US.