Press Release (ePRNews.com) - SINGAPORE - Nov 25, 2016 - Vietnam has decided to put aside the ratification of the US-backed Trans-Pacific Partnership (TPP) trade accord following the recent political changes in the United States.
The TPP, that is a signature economic policy President Barack Obama, now looks increasingly uncertain with a Republican-dominated Congress and an incoming president that already declared the project a “disaster”.
The Vietnamese prime minister announced this on Thursday 17, citing the trade deal’s future uncertainty under the incoming US President Donald Trump.
“The United States had announced it is suspending the submission of TPP to the parliament so there are not sufficient conditions for Vietnam to submit its proposal for ratification,” said Prime Minister Nguyen Xuan Phuc speaking to the National Assembly.
The TPP project would give a big boost to Vietnam’s export and manufacturing industry, that is currently receiving a record high FDI injections due to the country’s relative stability, cheap labour and numerous trade agreements.
“We already have signed 12 free trade agreements, so joining the TPP is good, but without joining TPP we will still continue to further the economic integration under programs we have joined,” added Prime Minister Nguyen.
Although the TPP involves 12 member countries, according to the agreement’s stipulations, the deal can only be adopted if the United States is a part of it since the country’s economy represents at least 70% of the combined GDP of the member states.
Vietnam however looks to continue to maintain good relations with the United States as much as it does all other countries globally.
“We are ready to cooperate with the United States for co-development on the principle of respecting independence, territorial sovereignty, causing no harms to each other. In that spirit, I believe the Vietnam-US ties will be better in the coming time.”
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