Exporters of four types of Vietnamese fruit will enjoy zero tariffs on shipments to Peru immediately after the Trans-Pacific Partnership (TPP) accord takes effect, a Peruvian diplomat said on Tuesday.
Vietnamese cashews, longan fruits, litchis and dragon fruits are subject to a nine percent import duty in the Latin American country, and this additional cost will be removed following the ratification of the TPP, Peruvian Charge d'Affaires Luis Tsuboyama told a forum in Hanoi.
Peru is one of three Latin countries, besides Chile and Mexico, that are party to the ambitious 12-nation trade agreement that also includes Australia, Brunei, Canada, Japan, Malaysia, New Zealand, Singapore, the U.S., and Vietnam.
The trade accord will bring huge opportunities for Vietnamese produce to penetrate the Peruvian market, according to the diplomat.
He said fruits, however, will have to pass new plant quarantine standards the Latin country is expected to put in place by next year, to be eligible for export, Tsuboyama noted.
As for Vietnamese footwear products, Peru will only levy a zero tariff on sports shoes, and keep the 17 percent on other product lines.
All tariffs, however, will be lifted in 16 years from the effective date of the TPP, as agreed upon in the trade accord.
The TPP deal, reached on October 5 after marathon talks between the 12 party countries, aims to liberalize commerce in 40 percent of the world's economy, according to Reuters.
The party countries are expected to officially sign the deal no later than the end of the first quarter of next year, after which their legislatures will begin the ratification process.
Vietnam's lawmaking National Assembly could start considering the pact in mid-2016, according to The Saigon Times Online.
The TPP will enable Peru to access five new markets, including Vietnam, Tsuboyama said, adding this is one of the most important benefits his country will gain from the trade deal.
Vietnam is committed to eliminating 66 percent of its tariff lines for Peru goods, with duties slapped on salmon, mackerel, tuna and fish oil to be zeroed immediately after the TPP is in place.
As much as 98 percent of the Peru’s export value will benefit from the tariff eliminations.
On the other hand, Peru will erase 80.7 percent of tariff lines for Vietnamese imports immediately after the TPP takes effect, and increase the proportion to 99.4 percent from the 17th year.
With the door set to open wider, it is advised that Vietnam not view Peru as the final destination to sell its goods to, but the gateway to the vast Latin American market, Tsuboyama said.