Vietnam and Mexico are members of a trade treaty named ‘Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) under which exports can be done without paying customs duties.
CPTPP is a trade bloc of countries representing 500 million people, with a combined GDP of about US $13.5 trillion, bringing new opportunities for trade and investment between the signatory countries. Vietnamese textile and apparel exporters have been urged to take advantage of CPTPP and increase exports to the Latin American country.
The latin country with a population of 12 crore, annually imports about $3 billion worth of textiles, garments, and footwear of all kinds, has now become Vietnam’s second-largest trading partner in Latin America, while Vietnam is Mexico’s eighth-largest trading partner in Asia.
Vietnam’s garment exports to CPTPP member markets such as Canada and Mexico are high, showing that businesses have effectively taken advantage of tariff incentives but there is potential for more.
The Ministry of Industry and Trade issued a circular on the amount of tariff quotas for textiles and garments exported to Mexico in 2023 under the CPTPP Agreement. According to the circular, 250,000 kg of yarn, 2.5 million pieces of knitted clothing, and 750,000 pieces of woven clothing can be exported duty-free to them in 2023 under the CPTPP Agreement 2023.
Experts urged the Vietnamese textile and garment sector to take part in various Latin American exhibitions to expand exports and increase the market share of Vietnamese goods in Mexico. They have also been advised to organize trade delegation meetings between Vietnamese exporters and Mexican importers.