Vietnam, Mexico tap CPTPP trade potential

06:00 | 14/10/2021 Cooperation

(VEN) - Vietnam and Mexico have reaped positive bilateral trade results from the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). However, the presence of Vietnamese and Mexican goods in each other’s markets remains modest, requiring greater efforts to make the most of preferences offered by the trade deal.

Vietnamese trade surplus

Mexico currently is Vietnam’s second largest trading partner in Latin America and fourth in the American region. For its part, Vietnam is Mexico’s eighth largest trading partner in the Asia-Pacific.

Despite adverse impacts of the Covid-19 pandemic on the global economy, trade between Vietnam and Mexico reached US$3.68 billion in 2020, up 6.12 percent compared with 2019, including US$3.16 billion worth of Vietnam’s exports to Mexico, up 11.73 percent, and US$523 million worth of imports from this market, down 18.58 percent. Vietnam’s trade surplus with Mexico has been maintained over many years, and Mexico is one of the few markets with which Vietnam has annual trade surplus exceeding US$2 billion.

vietnam mexico tap cptpp trade potential

The third session of the Vietnam-Mexico Joint Committee for Economic, Trade and Investment Cooperation

In the first eight months of 2021, Vietnam’s bilateral trade with Mexico continued growing and reached US$3.24 billion, a year-on-year increase of 36.08 percent. This result turned Mexico into Vietnam’s second largest trading partner in Latin America and the fourth in the American region, after the US, Canada and Brazil. Vietnam’s exports to Mexico in the first eight months reached US$2.92 billion, up 43 percent compared with the same period last year.

At the third session of the Vietnam-Mexico Joint Committee for Economic, Trade and Investment Cooperation, Vietnamese Deputy Minister of Industry and Trade Do Thang Hai said, “The CPTPP will create new impetus for trade and investment cooperation between Vietnam and other CPTPP members, and Mexico in particular.” However, he added, Vietnamese goods still hold a modest market share in Mexico, 1.3 percent, affirming that there’s much room for Vietnam to increase exports to this market by utilizing CPTPP preferences.

New opportunities

Vietnam and Mexico established a joint committee for economic, trade and investment cooperation in 2017 and have maintained its effective operation since then.

Undersecretary for Foreign Trade in the Mexican Secretariat of Economy Luz Maria de Mora said, “Vietnam is a dynamic market offering opportunities for Mexican exports to access more than 98 million potential consumers. Mexico is also seeking access to potential markets for increased manufacturing capacity.” According to Mexico’s Institute for Global Economic Research, Mexico can connect manufacturing centers to help the two countries set up global value chains between North America and Southeast Asia.

Undersecretary Luz Maria de Mora said the CPTPP plays an important role for the Asia-Pacific, helping promote prosperity for the people in 11 member countries. He affirmed that the agreement had strengthened the relationship between Mexico and Vietnam, and that Mexico is seeking opportunities to export various products to Vietnam, such as machinery, mechanical equipment, aluminum and aluminum products, measuring devices, medical equipment, perfume, cosmetics, and rubber products.

Deputy Minister of Industry and Trade Do Thang Hai:

To make the most of CPTPP preferences, Vietnam and Mexico should diversify imports and exports and facilitate each other’s market opening efforts. Businesses should be provided with information about each other’s markets as well as support through trade and investment promotion activities.

Thu Thuy