Once the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP, formerly TPP) and the European Union-Vietnam Free Trade Agreement (EVFTA) take effect, Vietnam’s farmed shrimp products will become much more competitive on international markets.

Vương Đức Anh, from Vietnam’s Ministry of Industry and Trade’s Department of Export-Import, said the CPTPP and EVFTA were designed to reduce tariffs.  Under EVFTA, Vietnam’s shrimp will have zero tariffs for a maximum of seven years.  While under CPTPP, Canada and Peru will cut Vietnam’s tariffs to zero.

Anh said the signing of the EVFTA and CPTPP will help shrimp processors expand markets, especially new markets like Canada, Peru and Mexico, given that Vietnam’s biggest rivals—Thailand and China—have yet to sign free trade agreements with the European Union and have yet to join the CPTPP.

In terms of shrimp exports, Vietnam ranks second globally with a market share of 14 percent, behind India’s 15 percent.  When EVFTA and CPTPPP are approved, Vietnam will enjoy a reduction in import duties on raw shrimp and export duties on processed shrimp to EU and CPTPP.  Meanwhile, India is not a member of the CPTPP, and free trade negotiations between India and the European Union are being suspended.  This is seen as an opportunity for Vietnam’s shrimp exports to compete with India’s.

Vietnam’s shrimp exporters pay average tariffs of 6-20 percent for exports to the European Union.  Under CPTPP protocols, tariffs range from 2 to 10 percent.