Peru’s official ratification of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) this week is expected to boost trade between Viet Nam and the South American nation.

Under the agreement, Peru has committed to removing up to 81 per cent of taxes immediately after the CPTPP comes into force, and 99.4 per cent of taxes by the 17th year after the deal takes effect.

Trade between Viet Nam and Peru increased from US$284.96 million in 2014 to $422.73 million in 2019.

Last year, however, there was a sizable drop to $391.17 million due to the impact of the COVID-19 pandemic. That said, bilateral trade grew strongly in the first half of this year to reach $278.27 million, up 78.7 per cent year-on-year.

During this period Viet Nam’s exports to Peru hit $242.49 million, representing a rise of 103.6 per cent.

Peru has been viewed as a potential market for a number of Vietnamese firms.

Viet Nam’s major exports to Peru include phones and electronic components, computers and electronics, footwear, clinker and cement, garments-textiles and aquatic products. Meanwhile, Peru ships fish powder, antimony and minerals to the Southeast Asian nation.

Notably, exterior wood and agricultural products like cashew nut, tea, pepper, fruit and vegetables, and certain coffee products will enjoy a zero per cent tariff after the deal comes into force, while garments-textiles and footwear are subject to a zero per cent tariff in the 16th year.

The ministry suggested local firms make the most of the opportunities presented by the CPTPP to step up exports to Peru.

Peru signed the CPTPP in March 2018, becoming the eighth member country to sign the deal. It will officially take effect in Peru 60 days after the country completes the registration of the ratification with New Zealand, the depository for the TPP. — VNS