Question:
What are the similarities and differences regarding labor issues in both the CPTPP and EVFTA agreements?
Answer:
Both agreements do not create new obligations but merely reaffirm the labor standards of the International Labour Organization (ILO). However, unlike the CPTPP, the EVFTA does not include a dispute settlement mechanism or trade sanctions in the event that the parties violate their labor commitments.
Question:
How do the EVFTA and CPTPP differ in terms of government procurement?
Answer:
In the field of government procurement, the EVFTA and CPTPP mainly differ in terms of the scope of commitments. In the CPTPP, Vietnam commits to opening government procurement for 21 central ministries and sectors but does not commit to open procurement for local government agencies and state-owned enterprises. However, in the EVFTA, Vietnam commits to open government procurement for both central and local government agencies, including 21 central ministries and sectors, certain units under the Ministry of National Defense (except for goods and services serving national security and defense objectives), two localities, namely Hanoi and Ho Chi Minh City, and some specific entities such as the Vietnam Electricity Group, Vietnam Railways, 34 hospitals under the Ministry of Health, Hanoi National University, Ho Chi Minh City National University, and several central institutes.
Question:
Compare Vietnam’s commitments to eliminate tariffs in the EVFTA and CPTPP.
Answer:
| Under the EVFTA Agreement | Under the CPTPP Agreement |
| Vietnam commits to eliminate tariffs immediately upon the agreement’s entry into force for 48.5% of tariff lines (accounting for 64.5% of import value). Subsequently, after 7 years, 91.8% of tariff lines, equivalent to 97.1% of the import value from the EU, will have their tariffs removed by Vietnam. After 10 years, the tariff elimination rate reaches approximately 98.3% of tariff lines (99.8% of import value). For the remaining 1.7% of tariff lines from the EU, Vietnam will implement a longer tariff elimination schedule of over 10 years or apply TRQ commitments under the WTO or not commit to tariff elimination. | Vietnam commits to eliminate tariffs for 66% of tariff lines immediately upon the agreement’s entry into force and 86.5% of tariff lines within 3 years from the agreement’s effective date. The remaining items have tariff reduction schedules mainly ranging from 5 to 10 years. For some particularly sensitive items, Vietnam requires a tariff reduction schedule longer than 10 years or applies tariff rate quotas (TRQ). |
In summary, for both agreements, Vietnam has a tariff elimination schedule of around 10 years for approximately 99% of tariff lines from partner countries. For sensitive items, Vietnam retains a relatively long tariff elimination schedule (over 10 years), applies TRQ, or does not commit to tariff elimination.
