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    The TPP Agreement Is Not Dead. Vietnam'S Garment Industry Is A Big Winner. The United States Is Likely To Return To TPP.

    2019/1/7 14:49:00 35

    TPPAgreementClothing IndustryWinnerMaybeTPP

    Japanese media said that the p Pacific Partnership Agreement (TPP), which took part in 11 countries, including Japan, came into force in December 30, 2018, occupying 13% of the global gross domestic product (GDP), and the new economic circle with over 500 million population is coming into being.

    The TPP agreement is still intact, and Japan is actively looking for it.

    According to Kyodo News reported on December 30, 2018, with the expansion of global protectionism, Japan strives to establish a free trade area.

    The tariff of over 95% varieties of agricultural products and industrial products in the region will be removed in the future.

    The economic partnership agreement between Japan and the EU will also take effect in February 2019, and Japan's trade strategy will usher in a new phase.

    For Japan, the entry into force of TPP will drive exports of automobiles and other industrial products, and it is also expected to achieve a downward trend in food prices.

    But the inflow of cheap agricultural products centered on beef and pork will test Japan's domestic agriculture.

    In addition to the support measures of the Japanese government, farmers also need to strengthen their competitiveness and expand overseas markets.

    Japan, Mexico, Singapore, Canada, New Zealand and Australia approved the entry into force of TPP in December 30, 2018. In addition to revoking and reducing tariffs on industrial and agricultural products, the 6 countries will also initiate common rules on Trade and investment.

    The rest of the world is also pushing ahead with the formalities.

    In the future, TPP will strive to expand participating countries and enhance the sense of existence around the world.

    Thailand and the United Kingdom are considering joining.

    After the entry into force of TPP, more than 95% of all varieties in Japan, including industrial products and agricultural products, will be withdrawn from customs duties.

    The 5 sensitive areas of rice, wheat, beef, pork, dairy products and sugar crops are excluded from the tariff revocation.

    Countries other than Japan will withdraw tariffs on more than 99% of all varieties in the future.

    Japan and the United States will start bilateral negotiations on Tariffs in 2019, and beef and pork and automobiles will become the main topics.

    In 2017, US TPP crops could not enjoy the benefits of tariff reductions in the region, and were inferior to European products.

    The report says that the United States is willing to negotiate as soon as possible because of the industry groups in the United States.

    Japan intends to evoke anxiety in the United States and take advantage of the negotiating table. It will also urge the United States to return to TPP.

    The "TPP11" agreement has entered into force.

    Shigeki Minmitsu, Minister of economic regeneration of Japan, announced at a press conference after the cabinet meeting in December 28, 2018 that the 11 Ministerial Conference of TPP will be held in Tokyo in January 19, 2019.

    The conference plans to discuss the procedures of new countries.

    "We will send a strong message to the world about the importance of the free trade system," Mao said.

    TPP entered into force in 6 countries such as Japan and Australia, which had completed domestic formalities in the 11 countries in December 30, 2018.

    The remaining 5 countries are also promoting the formalities, and Vietnam will ratification in January 14, 2019.

    The list of candidates for the new accession includes Thailand and the United Kingdom.

    The Tokyo conference will be the first ministerial conference since the entry into force of the TPP.

    The participating countries are called the "TPP committee". The chairperson is Japan, and Prime Minister Abe Shinzo is going to attend.

    The commemorative ceremony to invite relevant personages from the economic circles will also be held in January 19th.

    According to "Japan economic news" reported on December 30, 2018, "no American version of TPP" (also known as "TPP11") came into effect on the 30 day.

    This means that a huge trade circle, which accounts for nearly 40% of the world's gross domestic product (GDP), is officially launched.

    If we can prevent the spread of trade protectionism, "TPP11" will become the touchstone.

    After the "TPP11" is officially launched, 10 countries, except Japan, will eventually abolish almost all tariffs.

    Japan will eventually abolish tariffs on 100% of industrial products and 82.3% of agricultural and forestry products.

    According to the agreement on economic partnership between Japan and the EU, Japan will exempt 94% of its products from tariffs, and the EU will exempt 99% of its products from tariffs.

    The effect of exemption from tariff is enormous.

    According to Takahashi Junki, a senior researcher at the Japan Institute of international trade and investment, the tariff of Japanese exports will only be reduced by $2 billion in the first year, and the tariffs in Japan from other 10 countries will also be reduced by about US $1 billion in the first year. Only 5 countries such as Canada and Australia will be exemption.

    The garment and fabric processing industry will be further pferred.

    The business community has seen business opportunities after the birth of the new trade circle.

    Japan's tariffs on passenger cars for Canada dropped from 6.1% to 5.5% in December 30th, and will fall to zero tariffs in stages.

    In 2007, the agreement on economic partnership between Chile and Chile came into effect, and the popularity of Chilean wine in Japan rose. By 2015, Japan imported more wine from Chile than France.

    Wine imported from Japan in 2007 was almost the same as that produced in Chile, but by 2017, the gap between them has been 8 times.

    Imagine that after the expansion of the free trade circle, the competitiveness of American beef will also decline correspondingly.

    Reported that in the field of clothing, not only clothing manufacturers, fabrics and other raw materials manufacturers will also move to Vietnam and other places of the trend of growing.

    If the United States joins TPP, the total amount of GDP in the TPP economic circle will account for 60% of the total GDP in the world.

    However, in 2017, President Trump announced the withdrawal from the TPP negotiations.

    Following Japan's lead, 11 countries agreed on TPP to form a "TPP11" framework.

    At present, Thailand, Indonesia and the United Kingdom are also considering joining TPP.

    Once the world sees that the free trade zone can really speed up economic growth, TPP membership is bound to increase.

    The agreement on economic partnership between Japan and Singapore entered into force in 2002, and has been in history for 16 years.

    The Japanese government reckon that the "TPP11" and the Japan Europe Economic Partnership Agreement may promote the efficiency of Japan's GDP, the former being 7 trillion and 800 billion yen (about 70 billion 700 million US dollars), the latter being 5 trillion and 200 billion yen (about 47 billion 100 million US dollars).

    Shigeki Minmitsu, Minister of economic regeneration of Japan, stressed that the start of the new trade circle will bring new engines of growth to the Japanese economy.

    Short commentary: neither arrogant nor arrogant.

    Although the Chinese will say that without China's TPP, it is impossible to dominate the world.

    You know, it is precisely because of China's accession to the WTO in 1999 that it quickly became an important pole in the world.

    Japan, Vietnam and other countries have been doing things around China and have to guard against it. Our country can only enter the world with greater courage, reform and opening up, bigger pattern and mind, and accelerate the strategy of "one belt and one road" to break through tight encirclement and remain invincible.

    However, the absolute strength of China's textile and apparel industry chain is not a small Vietnam can challenge lightly.

    Not arrogant or arrogant, China refuels!

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