Opportunities and challenges from tariff reduction commitments within RCEP for trade in some of PVN’s products

Abstract

The Regional Comprehensive Economic Partnership (RCEP) was signed on 15 November 2020, after eight years of negotiation. This is the world's largest free trade agreement (FTA) with the participation of 10 ASEAN member countries and 5 other countries including Australia, China, Japan, South Korea and New Zealand. By the end of the roadmap, which lasts 15 to 20 years, Vietnam will eliminate tariffs on about 85.6% - 89.6% tariff lines for partner countries, while the partner countries will eliminate tariffs for Vietnam in the range of 90.7% - 92%. The article compares Vietnam’s import taxes with those of other RCEP member countries on imports from Vietnam, and with the tariffs in other FTAs that Vietnam has participated in directly or through ASEAN, with regard to key products of the Vietnam Oil and Gas Group (PVN) and its subsidiaries including petroleum, LPG, PP, Urea, NPK, fibre and yarns. Furthermore, the paper identifies opportunities and challenges for import and export of these products after Vietnam’s joining RCEP.