09:16 | 17/02/2016 Trade
Swift ratification of the Trans Pacific Partnership (TPP) will help create new export opportunities for agriculture and enhance the industry’s contribution to the national economy, says the Ministry of Agriculture and Rural Development (MARD).
After the TPP’s signing, MARD Deputy Minister Ha Cong Tuan said the trade deal has the potential to create long term benefits for Vietnamese farmers, particularly in markets like the US, Canada, Mexico and Peru.
Deputy Minister Tuan said MARD recognized the TPP signing achievement but stressed it was now “critical the next steps be taken post-haste” and the agreement ratified by each Pacific Rim nation.
When the agreement is ratified and given effect, it will help Vietnam reduce dependence on certain markets, such as the Chinese market, and become more flexible in its import-export activities.
Secondly, we are confident the agreement will provide expanded markets for Vietnam’s key farm produce exports by allowing them to be more price competitive in major national and regional markets around the globe.
There is no guarantee, but we are hopeful the trade pact will in turn help attract badly needed investment in the industry to facilitate installation of modern machinery, equipment and technologies into the antiquated systems that are now all too common.
Tuan stressed the signing of the TPP is a milestone for Vietnamese agriculture and a comprehensive and liberalizing agreement for the Vietnamese community.
Nguyen Do Anh Tuan, director of the Institute of Policy and Strategy for Agriculture and Rural Development agrees with the assertion Vietnam will gain some competitive advantages in agriculture from the TPP.
However, there is little doubt that agriculture won’t be able to compete, at least initially with other nations said Tuan, specifically mentioning the inability to compete with the US and Canada (pork and chicken) and with, Australia and New Zealand (beef and milk products).
Lastly, Dr Nguyen Ngoc Tien from Quy Nhon University emphasized the need for agriculture to improve the quality of farm produce to meet the strict requirements of major markets such as the US and Japan.