A Sanitary and phytosanitary (SPS)

Technical barriers to trade (TBT)

B
C Pre-shipment inspection and other formalities (automatic import licensing)
D Contingent trade-protective measures (anti-subsidy, anti-dumping,
safeguard)
E Non-automatic licensing, quotas, prohibition, and quality-control measures
other than for SPS and TBT reasons
F Price control measures, including additional taxes and charges
G Finance measures
H Measures affecting competition
I Trade-related investment measures
J Distribution restrictions
K Restrictions on post-sale service
L Subsidies and other forms of support
M Government procurement restrictions
N Intellectual property
O Rule of origin
P Export-related measures

1. Trade summary
VN Trade Policy Review (subsheet 1)

2. Tariff 9.6% (2022)

a. Agricultural and Non-agricultural products: VN Trade Policy Review
(subsheet 2)
Agri: 17.1
Non-agri: 8.4
 b. Tariff trend: stable

201
0 9.8
201
5 9.5
201
8 9.5
201
9 9.6
202
0 9.5
202
1 9.6
202
2 9.6

2010-15: decreased:
 Trade Liberalization
 comply with WTO rules.
 Free Trade Agreements
 Attracting Foreign Investment:
 Export-Oriented Growth:
 Economic Growth and Rising Income:
2015-2022: fluctuated but increased 0.1% overall
  Generate gov revenue
 Protect domestic industries from foreign competition

c. How have tariff rates recently increased/reduced?

Vietnam's Special Preferential Tariff to implement Free Trade Agreements (FTAs)
with some countries applied from 2018:

 Some commodities keep unchanged for five years (2018 - 2022) such as
alcohol, beer, gasoline, cars, sugar, meat by-products, cement, etc.
 In fact, from 2015,
 ASEAN - Japan tax rate (AJCEP): about 0% from 2018. Some import
tax rate of 5% in 2018 will be reduced to 0% from 2019, not waiting
until 2022.
 ASEAN - India tax rate (AIFTA):
fresh goods of animals: 1% to 3% in 2018 → 0% from 2019.
Animal meat, 3% in 2018 → 0% from 2019; the 15% in 2018 → 10% to 9%
in 2019 - 2021 and 0% in 2022.
 VKFTA tariff (Vietnam - South Korea),
meat from 10% to 20% (in 2018) → 0% by 2022.
fish tax 7.5% to 15% → 0% by 2022.

3. Non-tariff measures VN Trade Policy Review (subsheet 3)

 Top NTMs: sps, tbt, export-related

Altogether, SPS and TBT measures already make up 3/4 of NTMs in Viet Nam;
export-related measures rank third with 16.6 %. (Source:
https://www.eria.org/RPR_FY2015_No.1_Chapter_12.pdf)
 Import quotas on agricultural products: Vietnam has import quotas on a
number of agricultural products, including rice, pork, and poultry.
  TBTs on food safety:
 SPSs on agricultural products
Này là nước khác áp dụng lên VN (đọc cho dui có gì lấy ra chém đượt gì thì
chém┌( ಠ_ಠ)┘):
- mainly Ntms affected: (TBT and SPS), and measures (group D): anti-
subsidy, anti-dumping and safeguards.
- Vietnam's main export commodity groups most affected by NTMs:
agricultural products, minerals and manufacturing industry groups.
4. trade policy review vietnam.pdf(with highlight & notes)

1. US
1. TARIFF (total - non agri - agri)
2012011 2012016 2012019 2022020 2022021 2022022 2022023
3.5 3.5 3.5 3.5 3.4 3.4 (3.1-3.3 3.3 (3.1-3.4 3.4 (3.1-3.4 3.4 (3.2- 3.3 3.3
(3.3-4.9) (3.2-5.2)5.3) 4.7) 5.1) 5.2) (3.1-5.1)
In overall, there are only minor changes in the simple average MFN applied tariff rate
of the US during the time period.
 2011-2016: fluctuated between 3.4 and 3.5
Changes in the composition of US imports:
Changes in the global economy: The global economy experienced a recession in 2008-
2009.
 2016-2019 decreased
Implementation of the Trade in Services Agreement (TiSA) → reduced some tariffs
Renegotiation of the North American Free Trade Agreement (NAFTA)
Continued implementation of the WTO Trade Facilitation Agreement (TFA) → easier
and cheaper for businesses to trade goods with the US
 2019-2020 decrease
The Phase One Economic and Trade Agreement with China
The US-Mexico-Canada Agreement (USMCA)9
The expiration of some tariffs on Chinese goods
 2020-2021 increased by 0,1:
COVID-19 pandemic disruptions to global supply chains
→ promote domestic trade
→ increase gov revenue
 2021-2023 decrease by 0,1
 Trade agreement
Unilateral tariff reductions
Technological advances: → easier and cheaper to produce goods in multiple countries

2. NON-TARIFF MEASURES
US top 10 most imposed NTMs

Top NTMs: TBT, export-related measures

Top 3: Labeling requirements, Product quality and TBT regulations on production
processes with the coverage ratio of 22-42%.
The impact on other countries can be both positive and negative.
 positive
→ improve the quality and safety of products exported to the United States.
→ promote innovation and technological advancement.
 negative
→ increase the costs of production and make it more difficult for producers
in other countries to compete in the US market.
→ changes in production processes that may not be suitable for the needs of
producers in other countries.

For Vietnam:
 SPS: seafood, agricultural products and food; aquacultural products (exceeding
the permissible import quality thresholds for fishery items, especially shrimp and
pangasius) due to high presence of antibiotics and contaminated with germs and
chemical poisonous
 TBT: products most subject to are seafood, agricultural products and textile
 Contingent Trade-protective Measures: honey, tires, and canned shrimp faced
anti dumping/Countervailing duties measures. Copper pipes and concrete bars:
8.05% provisional anti-dumping duty. steel: anti-dumping taxes up to 200% and
countervailing duties over 256%.
 Intellectual property: Vietnam is on the U.S. watch list for IPR-related
infringement, anti-counterfeiting, and illicit goods.
 Trade policy review
 The United States has a large economy that is highly integrated with the rest of the
world. However, the COVID-19 pandemic caused a contraction of 3.4% in 2020.
But in 2021, the economy bounced back with the help of government support and
relaxed monetary conditions, resulting in a real GDP growth rate of 5.7%.
 Tariffs on agricultural products averaged 9.2%, more than double the average for
non-agricultural products (4.0%). → protect its domestic agricultural industry →
negative impact on developing countries
 High tariffs in the dairy and tobacco sectors.
 U.S. continued to apply NTMs: the Merchandise Processing Fee (MPF), COBRA
fees, the Harbor Maintenance Tax (HMT), and excise taxes on imports → more
difficult and expensive to export their goods to the U.S. → negative impact on
developing countries.
 The US government implements import prohibitions, restrictions, and licensing
requirements for products that could harm human health or the environment, or
that are essential to national security.
 The United States is an active user of anti-dumping (AD) duties and CVD duties,
especially on iron and steel products.
 The two safeguard measures (on crystalline silicon photovoltaic cells, and large
residential washers) in force before 2018 were renewed during the period under
review, but no new measures were applied.
 The key feature of US export controls:
 guided by national security and the pursuit of foreign policy objectives
→ restrict the export of goods and technologies that could harm the US or its allies
→ support regimes
 apply to a wide range of items, including defense articles, dual-use goods and
technologies, and certain nuclear, chemical, and biological weapons and related
technologies.
 apply to countries subject to economic sanctions by the United States
⇒ complex and evolving system to protect US national security and foreign policy
interests.

3. COMPARISON
Vietnam US
Tariff Higher (to protect Lower (Developed countries
domestic economies) often have lower tariffs because
The simple average they typically have more
MFN applied tariff is diverse and advanced
 9.6 (2022) economies)
The simple average MFN applied
tariff is 3.4 (2022)
FTA VN has signed 16 FTAs The United States has
and still in negotiation comprehensive FTAs in force
with 3 more FTAs with 20 countries and in
negotiation with UK
NTM Top 3: SPS, TBT, Top: TBT, export-related
Export-related
Partners China, US, Japan, South Canada, Mexico, China, UK,
Korea, Taiwan, Japan, South Korea, Germany,...
Thailand,...

3. EU
1. TARIFF:

YEAR TARIFF ANALYSIS

2010 Reasons for remaining stable for over a decade:
1. Trade Policy Stability: Frequent changes in tariffs can
create uncertainty for both domestic and foreign businesses,
2016 which can be detrimental to trade.
2. International Trade Agreements: The EU is a party to
2019 numerous international trade agreements, both bilaterally and
multilaterally. Changing tariffs unilaterally could violate
2020 these agreements and lead to trade disputes.
2021 5.1% 3. Economic Considerations: The EU carefully considers
the potential economic impacts of tariff changes. Tariff
2022 adjustments can affect various industries and may have
unintended consequences. Stability in tariff rates helps
balance the interests of different sectors of the economy.
4. Political Factors: The EU is a complex political entity
with multiple member states, and any changes to tariffs
require consensus among its member states. Political
negotiations and decision-making processes can slow down
tariff adjustments.
1.1. Tariff on imports: Nhìn chung, chính phủ EU áp dụng mức thuế suất thấp
đối với cả hai loại hàng hóa, hầu hết đc miễn thuế.

a. Agricultural Products
=> EVFTA: đa số những mặt hàng agriculture chủ lực của VN như rice, coffee,...
được freely import vô EU với hạn ngạch nhất định => tạo điều kiện cho VN xuất
khẩu
b. Non-agricultural products: tariff khá cao (từ 0-83%) (vì EU nó phát triển
mạnh về mấy mặt hàng này nên hạn chế nhập khẩu mặt hàng như trên để
protect domestic firms nhằm boost revenue)
b. Others:
 August 2020, approximately 84% of EU imports from Vietnam enter duty-
free. Sectors that benefit from this include: pharmaceuticals and most
petrochemicals (phased out after 3 years).
 The EU will phase out nearly all the remaining customs duties by November
2030. However, The EU will continue to apply tariffs on a few products
including on some fish products (tilapia, skipjack tuna).

2. NON-TARIFF MEASURES:

2.1. Technical barriers to trade (TBT) textiles, animals, fruits and vegetables,
chemicals, food, leather or living skin, shoes, plastics, rubber, fuels, etc.

2.2. Sanitary and phytosanitary measures (SPS)

ĐỌC THÊM: Top 10 NTMs ở EU

The NTM ratio is highest for labelling requirements (B310)(nearly 73%),
inspection (B840), certification requirements (B830) and product quality or
performance requirements (B700). The lowest NTM ratios for importers are
packaging requirements (B330) and restricted use of certain substances (B220). =>

NHÓM B LÀ NHÓM NTM TECHNICAL BARRIERS TO TRADE 😀

2.1. For developing countries:

 The EU has strict SPS requirements for imported agricultural products.
 For Vietnam:
 The EU imposes NTMs on the potential agricultural products exports of
Vietnam: Edible vegetables and certain roots and tubers (HS07), Edible
fruit and nuts; peel of citrus fruit or melons (HS08), and Coffee, tea,
maté and spices (HS09) (three main groups of agricultural products
exported to the EU, accounting for more than 96% of Vietnam's total
agricultural exports to this market in the 2001- 2020 period)

2.2. For developed countries:

 In 2019, the EU imposed a new SPS measure on imported beef from the
United States. The US beef industry argued that this measure was
discriminatory and unnecessary, and it led to a trade dispute between the EU
and the US.
3. COMPARISON WITH VIETNAM'S TRADE POLICY:
a. Agricultural Products
Agri products thì sẽ được eliminate tariff trong vòng 5-7 năm nữa, → EU có thể
mở rộgn thị trường và cạnh tranh với thị trường rượu, nguyên liệu ở VN nhiều
hơn.

b. Non-Agricultural Products
 Đa số các sản phẩm non-agri sẽ được gỡ bỏ tariff trong vòng 7-10 năm tới,
→ mở rộng cho nền công nghiệp của EU đến Việt Nam (công nghiệp
devices và cars, cars components nữa) -> việc này tạo điều kiện cho VN tiếp
cận với thị trường công nghiệp rộng rãi hơn.
 Còn mấy sản phẩm liên quan đến sinh, hoá học thì sẽ chiếm đến 70-80%
được eliminate tariff

EU'S NTMs vs VIETNAM'S NTMs

Transparency and predictability
The EU is more transparent about its NTMs than Vietnam. The EU publishes
information about its NTMs in a central repository, and it also provides businesses
with opportunities to comment on proposed NTMs.

 Import quotas: The EU does not have import quotas on agricultural products.
Vietnam, on the other hand, has import quotas on a number of agricultural
products, including rice, pork, and poultry.
 Tariff rate quotas (TRQs): The EU has TRQs on a number of products, but
the TRQs are relatively generous. Vietnam, on the other hand, has TRQs on
a number of products, and the TRQs can be more restrictive.
 TBTs and SPSs: The EUs are generally based on international standards.
Vietnams, on the other hand, can be more restrictive and can be based on
Vietnamese national standards.
EU'S TRADE POLICY vs VIETNAM'S TRADE POLICY
EU's trade policy is generally more liberal and open, while Vietnam's trade policy
is more protectionist.
→ EU: open and competitive economies in the world.
→ Vietnam's more protectionist trade policy has slowed its economic growth and
development.
IN COMPARISON WITH VIETNAM'S TRADE POLICY:

VIETNAM EU
TARIFF  9.6% (2021) -  5.1% (2021) -
simple average simple average
MFN applied MFN applied
 relatively high Tariffs imposed by EU nhìn
tariffs on imported chung đều thấp hơn Việt Nam.
agricultural ( Việt Nam nước developing
products (17.1%). nên nó phải tăng tariff để
This is because protect infant industry. EU là
Vietnam is a major một liên minh nước developed
agricultural nên reduce tariff để giúp các
producer, and the industry bên ngoài vào tạo
government wants to competition nhiều hơn. )
protect domestic
farmers from
competition from
 cheaper imported
goods.

NTMs Sps, tbt, export- tbt

related
FTA  16 FTAs  >30 (including
 Vietnam's FTAs Vietnam)
tend to be less  The EU's FTAs are
comprehensive than more comprehensive
the EU's FTAs. and in-depth than
( may not include Vietnam's FTAs →
provisions on other the EU and its
issues, such as labor partners make more
rights and equal concessions.
environmental
protection.)
PREFERENTIAL Vietnam has PTAs in The EU has PTAs in
TARIFFS place with over 50 place with over 70
countries. countries.

Trade policy Review of EU:

 EU has offered over 70 PTAs for different nations in the world. As concerns
regional and bilateral agreements, the European Union had, as of December
2022, the largest network of RTAs in the world with 44 agreements in place.
 Applied MFN tariffs have not changed significantly, and rates of duty
remain substantially the same; the simple average tariff was 5.1%, but the
agricultural sector continued to have rates on average three times higher
compared to non-agricultural goods.
 The EU's tariff structure is based on the Harmonized System (HS), which is
used by over 200 countries and territories, and it is the basis for the EU 's
Common Customs Tariff (CCT).
 The EU economy had many years of stability and growth prior to the
pandemic, when GDP growth averaged 2.1%; however, since then, there has
been increased volatility and uncertainty and real GDP declined by 5.7% in
2020. In 2021, a strong recovery occurred with GDP growth reaching 5.4%.
Despite another shock in early 2022 due to the war in Ukraine, GDP growth
remained strong.
  external trade, eu remained the world's top trader, with EUR 6.28 trillion
traded in goods and services in 2021. International trade = 21.5% of EU
GDP. The trade surplus in goods in 2021 to EUR 56.8 billion on account of
a significant increase in the value of imports largely due to higher cost of
energy imports.
 The multilateral trading system remains an integral component of EU trade
policy, and the reform of the WTO is one of the European Union's priority
actions.
 foreign investment, in October 2020, the European Union implemented a
common framework, which was adopted in 2019, for the screening of FDI
for reasons of security and public order.
 The European Union also continues to facilitate trade with developing
countries mainly through its GSP scheme, which has three components (i.e.
standard GSP, the GSP+, and the Everything but Arms (EBA) arrangement)
and covers 66 economies as of December 2022.
 The European Union continued to be a significant user of anti-dumping
measures and countervailing measures (eu refers to as anti-subsidy
measures) and was an increasing target for these measures from third
markets during the review period.
 Several measures on exports continued to be maintained by the European
Union, mainly due to various international conventions. At the EU level,
subsidies are mostly granted to agriculture and regional development and are
mainly financed by shared management funds, whose composition was
amended for the budget period 2021-27.
 Intellectual property rights (IPRs) remained important to the EU
economy, both in terms of employment and contribution to GDP.
 NTMs (SPS, TBT) are still improved and strengthened their functions
 In agriculture, the previous Common Agricultural Policy (CAP) continued to
be applied on a transitional basis, this policy brings together the agricultural
and rural development policies of the European Union, strengthening the
focus on measures addressing climate and environmental concerns.


Đọc thêm (có cái để chém trong bài)

*NTMs impact on Vietnam's agriculture

 In Vietnam, research by Nguyen Viet Khoi et al (2014) shows that the

impact of NTMs on exporting agricultural products includes both negative
and positive effects. The negative impact is reflected in the point where
environmental standards have become a challenge for Vietnamese
 agricultural products when based on common ground, Vietnamese
agricultural products have not yet met those technical standards. But also,
thanks to strong signals from the market, in the long term, the ability of
exporters to meet technical standards will allow Vietnamese agricultural
products to increase in value, thereby encouraging growers and businesses.
Agricultural agriculture changes perspective, development strategy, and
even technological innovation in order to increase the value of exported
agricultural products.
 Vietnam's export standards can be improved for Vietnam in the face of
NTMs, promoting aspects of production: R&D, packaging, sales, etc.
Vietnam has formed large specialized farming areas to produce agricultural
export products. Many agricultural products, notably coffee, tea, and some
fruits of Vietnam, have been produced and processed according to standard
processes to meet the requirements of NTMs applied by EU countries.
Therefore, the EU's application of more NTMs creates an incentive for
export enterprises to improve production technology, giving Vietnam's
agricultural products an advantage over competitors.
In 2018, the EU:
 held the second-largest share of global exports and imports of goods
 exported goods equivalent to 15.5% of the world total
 imported primary products, raw materials and energy, along with capital
equipment, chemicals and consumer goods

4. JAPAN
1. Tariff measures
Japan has shifted towards trade liberty since the 1980s, joining international
agreements like the WTO and reducing tariffs to promote liberalization and open
trade. In 2022, Japan's scheduled tariffs on all products are 3.9% (ITA, 2022),
enhancing trade flows and market access. Agriculture, a highly focused area, has
been contested in international trade negotiations, but some success has been
achieved through trade agreements, with exclusions and protective measures.
Product groups Final bound duties MFN applied duties
average duty-free in % average duty-free in %
Animal 13.7 45.7 10.5 45.6
products
Dairy 85.5 0 81.6 0
Sugar 30.6 7.3 23.8 5.1
Fish 4.9 4.9 5.7 3.0
Metals 1.0 69.9 0.9 70.6
 Clothing 9.2 0 8.9 2.1

Japan has implemented tariff cuts → balance industry protection, economic

growth, and international collaboration.
→ remove tariff obstacles, encourage digital trade, and ensure fair trade in
developing industries, benefiting Vietnam's exporters.
 Significant period for Japan’s economy:
2011: 3.8% → A slight increase following the year 2010, due to the effect of the
2008 recession ⇒ protecting domestic industries.
2013: 2.3% → The lowest tariff rate in the history of the nation. Many factors
came into play for this scenario, however the 2 main reasons were
 The Trans-Pacific Partnership (TPP) negotiations.
 The Economic Partnership Agreement (EPA) with the European Union
(EU).
2016: 3.5 %: → After the TPP negotiations fell out, the Japanese government
made its target to raise the tariff rate up again to the rate of 3.5%. In addition to
that, the political pressures from domestic agricultural interests and great concerns
about food security
2019 → 2020: 4.3% -> 4.4%
 implementation of the Comprehensive and Progressive Agreement for
Trans-Pacific Partnership (CPTPP) at the start of 2019
 implementation of the Japan-EU Economic Partnership Agreement (JEEPA)
 unilateral tariff reductions
 COVID-19 pandemic → Japanese government might have wanted to make
international trade access easier).
 Japan’s simple average and trade weighted average MFN tariff rate:

2. Non-tariff measures
Japan's trade policy includes non-tariff barriers to protect domestic businesses and
ensure product safety, but they also pose risks like trade distortion and decreased
market access, leading to disputes, high compliance costs, and potential product
adjustments, impairing competitiveness.

Impact of Japan’s NTM on international trade:

Technical barriers:
 Consumers may gradually switch their preferences and purchase behavior
from imported rather than domestic products, which is a long-lasting attempt
for domestic producers to achieve.
 decrease in Korean automobile exports to Japan, and increased the cost of
exporting automobile products to this country
Export subsidies
 non-subsidizing economies: positively affect consumers due to the price
effects, but negatively affect Japanese producers. However, actions taken to
offset import competition may decrease the price of exporting products from
other countries to Japan.
 pose a great threat to agricultural production and trading activities →
overproduction and food loss and waste.
Price control:
 discourage investment in certain sectors → shortages of goods and services.
Ex: government's setting of maximum prices for certain medical services →
control healthcare costs for consumers >< discouraged doctors from
providing certain services.
Sanitary and phytosanitary:
 Chinese tea, its price as well as export values have declined
 decreases beef export values to Japan. I
 affect India’s pattern of trade and its values by increasing the costs of
imports or prohibiting exports if exported products do not comply with strict
quality standards or multi-layered specifications.
3. Tariff and non-tariff treatment of Japan towards Vietnam
Tariffs
Under the VJEPA, Japan committed to eliminate tariffs on 96.45% of the total
tariff lines for Vietnamese goods by 2026. As of 2023: 90.64% of tariff lines for
Vietnamese goods, including all agricultural products and most industrial goods.
Non-tariff measures
 simplified and harmonized its technical standards and regulations with
international standards.
 increased its technical assistance to Vietnam to help Vietnamese businesses
comply with Japanese standards.

4. Comparison
Characteristic Japan Vietnam
Trade policy
Open and free trade Export-oriented
stance
Free trade Member of 16 FTAs, Member of 16 FTAs, including
agreements including the CPTPP and the the CPTPP and the EU-Vietnam
(FTAs) EU-Japan EPA FTA
Average tariff rate of 3.9%
→ Lower than Vietnam, Average tariff rate of 9.6%
Tariffs
common and usual for most (2021)
developed countries.
Top 3: sps, tbt, export-related
Top 3: tbt, price control,
Vietnam has been actively
Non-tariff export-related
decreasing its amount of
measures on the route of increasing
NTMs→ better promoting
its NTMs
international trade.
Main trading United States, China, South United States, China, South
partners Korea, European Union Korea, Japan

This is for reference only (I am advising you guys to only read and understand
BUT NOT memorize this )
Real Life
NTM Type Japan Vietnam
Example
Technical Japan has a number Vietnam also has a A foreign exporter
Barriers to of TBTs in place, number of TBTs in of agricultural
Trade (TBTs) including place, but they are products to Japan
 may need to take
generally less additional steps to
stringent than those in ensure that their
regulations on food
Japan. For example, products meet
safety, product
Vietnam does not have Japan's strict TBTs.
standards, and
any specific This could include
labeling
regulations on the use testing their
requirements →
of pesticides in products for
make it difficult for
agricultural products. pesticide residues
foreign exporters to
This makes it easier for and obtaining
sell their products in
foreign exporters to certification from a
Japan.
sell their products in Japanese
Vietnam. government
agency.
A foreign exporter
of meat and dairy
Vietnam also has a products to Japan
number of SPS may need to take
Japan has a number
measures in place, but additional steps to
of SPS measures in
they are generally less ensure that their
Sanitary and place to protect
stringent than those in products meet
Phytosanitary human health and
Japan. For example, Japan's strict SPS
Measures animal and plant
Vietnam does not have measures. This
(SPS) life.
any specific could include
→ Higher level of
regulations on the use obtaining
SPS
of hormones in certification from a
livestock production. Japanese
government
agency.
Rules of Japan has a number Vietnam also has a A foreign exporter
Origin of ROOs in place number of ROOs in of goods to Japan
(ROOs) that determine place, but they are may need to ensure
whether a product generally less that their products
qualifies for stringent than those in meet Japan's ROOs
preferential tariff Japan. For example, in order to qualify
treatment under a under the for preferential
free trade Comprehensive and tariff treatment.
agreement. For Progressive Agreement This could involve
example, under the for Trans-Pacific sourcing some of
 Japan-EU Economic
Partnership Partnership (CPTPP), a
Agreement product must have at
(JEEPA), a product least 40% of its value
must have at least originating in a the inputs for their
50% of its value CPTPP member products from
originating in country in order to Japan.
Japan or the EU in qualify for
order to qualify for preferential tariff
preferential tariff treatment.
treatment.
Japan has a number Vietnam also has a
of NTBs in place, number of NTBs in
including place, but they are
government generally less A foreign exporter
procurement stringent than those in of goods to Japan
policies, investment Japan. For example, may need to ta ke
restrictions, and Vietnam does not have additional steps to
Non-Tariff
customs procedures. any specific overcome Japan's
Barriers
For example, the government NTBs. This could
(NTBs)
Japanese procurement policies involve partnering
government has a that favor Vietnamese with a Japanese
policy of favoring suppliers. This makes company or
Japanese suppliers in it easier for foreign investing in Japan.
government exporters to win
procurement government contracts
contracts. in Vietnam.

Summary of Japan’s Trade Policy Review

 Japan offers preferential tariff treatment to 131 developing economies under
its GSP scheme
 Japan grants at least MFN treatment to all WTO Members with exception to
the Russian Federation and a few other countries and territories
 Japan's MFN applied tariff structure remains complex. W ith a total of 272
tariff rates, there are 136 different ad valorem rates, 75 different specific
rates, 29 different alternate rates, and 24 differe
 Japan does not levy any export taxes, nor does it maintain any export quotas
or operate export subsidy programmes
  Japan took measures regarding regulations on vehicle safety and
environmental protection
 Intellectual Property continues to be of vital importance to the Japanese
economy
 Japan has a substantial trade deficit in agricultural goods, with imports
of USD 74.8 billion and exports of USD 9.2 billion in 2021.

6. CHINA
1. Tariff Measures
 Total: 7.5 (2021)
Ag: 13.8
Non-ag: 6.5
 Historical Perspective: Since its accession to the World Trade
Organization (WTO) in 2001, China has progressively reduced its tariff
levels from >40% to averagely around 10% on industrial goods.

From 2010 to 2022, China has undergone several changes in its

tariff rate structure as part of its ongoing economic reform and
opening-up policies, as well as in response to global economic
and trade dynamics.
Main reason for the decreasing trend of tariff rate of China:
 Trade War Adjustments: in response to the U.S.-China trade
tensions, China adjusted tariff rates on a variety of U.S. goods,
implementing additional tariffs on some products while reducing
tariffs on others as part of the phase-one trade deal.
 Other reason: COVID-19 Pandemic Response, Bilateral and
Multilateral Negotiations, Global Trade Integration
2. Non-Tariff Measures
link
a) Sanitary and Phytosanitary Measures (SPS):
agricultural products, including food and beverages, and can be particularly
stringent, involving detailed inspections, testing, and certification
requirements.
b) Technical barriers to trade
Global Competitiveness: TBTs are crucial in maintaining competitive edges
by ensuring that imports meet stringent quality and safety standards, which
align with domestic products' specifications.
Innovation and Technology Protection: With rapid advancements in
technology and innovation, TBTs are pivotal in protecting domestic
technological developments and intellectual properties
Public Health Concerns: Given the ongoing implications of the COVID-19
pandemic, heightened emphasis on health and safety standards for imported
goods, especially consumables, is a priority to safeguard public health.
c) Export-related measures:
Because of Covid 19 → Supply Chain and Trade Flow Management: Amidst
global supply chain disruptions and fluctuating demand, export-related
measures enable China to manage the availability and flow of critical goods,
raw materials, and commodities to stabilize domestic industries and
international trade relationships.

3. Trade policy review

3. 1. Adjustments to Tariff Levels:
Main Point: In 2021, China could have made adjustments to its tariff levels on
a range of goods, potentially including reductions in certain tariffs to promote
imports and adjustments in response to international trade tensions and
agreements.
Impact: Changes in China’s tariff levels would impact the competitiveness of
foreign goods in the Chinese market, affecting trade flows and economic
interests of its trading partners. Countries benefiting from reduced tariffs
would likely see enhanced market access and trade opportunities.
3. 2. Enhanced Regulatory Measures and Standards:
Main Point: China has been known for continuously enhancing and enforcing
its regulatory measures and standards, include stringent quality, safety, and
environmental standards, impacting a broad spectrum of industries.
Impact: This could lead to increased costs and challenges for exporters but
also drive improvements in product quality and safety.
3. 3 Sanitary and Phytosanitary (SPS) Measures:
Impact: These measures could restrict market access for agricultural and food
products from other countries, impacting the trade opportunities for exporters
of these goods. The impact could be particularly significant for countries
highly dependent on agricultural exports to China.
4. Comparison with Vietnam
Differences:

CHINA VIETNAM
Tariffs (Generally higher) (Generally lower)
In 2022, China’s average applied In 2022, Vietnam's average
tariff rate was 7.5%. applied tariff rate was
=> Imported goods are generally 9.6%.
more expensive in China. =>imported goods are
China has higher tariffs on generally more expensive in
agricultural products than Vietnam. Vietnam.
(As Vietnam generally pursues Vietnam has higher tariffs
more liberalized trade in agricultural on certain electronic
products due to our export-oriented products (e.g.
agricultural sector) Telecommunications and
Information Technology)
than China .
NTMs (More restrictive) (Less restrictive)
China tends to have more extensive Vietnam is more likely to
and rigorous non-tariff measures use NTMs to promote
due to its larger and more diverse economic development and
economy and its greater emphasis to attract foreign
on protecting domestic industries investment.
and consumers. (e.g.
Telecommunications and
Information Technology)
 Vietnam’s strategy focused on integrating its economy into the
global trade ecosystem can make it relatively easier for foreign
businesses to enter compared to China.
(More) (Less)
China’s FTAs encompass major Vietnam’s approach to
economies and trading partners, FTAs is characterized by its
reflecting its significant influence in efforts to diversify its
global trade dynamics. economic relations and
Free Trade enhance its export-oriented
Agreement growth model.
While China, given its larger economy and global influence, might
have more extensive and influential FTAs, Vietnam has been
noteworthy for securing significant agreements, considering its
size and economic status

Measures for Vietnam: China has a number of trade policy measures in place that
specifically affect Vietnam. These measures include:
 Preferential Rates: Under the framework of the ASEAN-China Free Trade
Area (ACFTA), certain Vietnamese products may enjoy preferential tariff
rates, promoting trade between the two countries.
 Import Duties: Vietnam, like other trading partners, is subject to China’s
import duties on various goods, which can affect the competitiveness of
Vietnamese products in the Chinese market..
 Sanitary and Phytosanitary Measures: Vietnam’s agricultural and seafood
exports to China are often subject to stringent sanitary and phytosanitary
measures, affecting market access.
The specific impacts of these measures on Vietnam depend on the ongoing
dynamics of the bilateral relationship, negotiations, and agreements between the
two countries, and changes in domestic policies in both nations. China's overall
trade policy has also had a positive impact on trade with Vietnam.

7. INDIA
Tariff Rates:
2010 12.6 -> In order to boost trade, India reduced their tariffs in 2010.
2016 13.4 -> decreased: pressure from trading partners, boost economic
growth, and the desire to protect domestic industries. => Overall, India's
 tariff trend in 2016 was positive
2019 17.6 -> India's tariff trend in 2019 increased, due to
 Trade war between the US and China
 promoting domestic manufacturing and reducing India's reliance on
imports.
2020 15 -> India's overall tariff trend in 2020 decreased. There are a few
reasons for this:
 boost trade and investment.
 The COVID-19 pandemic has led to a decrease in demand for
goods=> putting downward pressure on prices.
 There has been a global trend towards lower tariffs in recent years.

2021 18.3 -> increased due to

 COVID-19 pandemic. => protect domestic industries
=> negative impact. Consumers have had to pay higher prices for
imported goods, and businesses have had to pay higher input costs;
making it more difficult for Indian businesses to compete in the global
market
2022 18.1 -> India's tariff trend in 2022 decreased. This was due to a number
of factors, including
 Trade liberalization, Regional trade agreements, and Free trade
agreements
India tariff rates have increased overall for a number of reasons,
including:
 Increased protectionism; Anti-dumping duties, Safeguard
duties

Non- tariff measures:

India Vietnam
Technical barriers -Develop its own - More likely to accept
to trade (TBTs) technical standards international standards as a
- Implement new TBTs basis for its TBTs.
without prior consultation - Vietnam is more likely to
- More complex and consult with stakeholders
restrictive TBT regime before implementing new
 than Vietnam. TBTs.
- India has a more
stringent approach to
TBTs for certain
products, such as
agricultural, medical
devices, and cosmetics
Sanitary and Higher level of SPS. Less stringent SPSs than those
Phytosanitary Ex:the ban on the import in India.
Measures (SPS) of certain fruits and India and Vietnam have been
vegetables, from certain working to reduce the impact
countries. => prevent the of their SPS => reduce testing
introduction of pests and and certification requirements.
diseases into India
Price-control Minimum support Vietnam does not have any
measures, prices (MSPs) protect price-control measures in
including farmers from low prices place. The Vietnamese
additional taxes Controlled prices: government believes that free
and charges ensure goods are markets are the best way to
affordable for consumers. allocate resources and to
Additional taxes and ensure economic growth
charges: petroleum,
alcoholic beverages =>
raise revenue and to
discourage consumption
of these goods.

Comparison with Vietnam Trade Policy

Differences:
INDIA VIETNAM
Tariffs (Generally higher) (Generally lower)
In 2022, India's average applied In 2022, Vietnam's average
tariff rate was 18.1%. applied tariff rate was
=> Imported goods are generally 5.9%.
more expensive in India. =>imported goods are
India has higher tariffs on generally more expensive
 agricultural products than in Vietnam.
Vietnam. Vietnam has higher tariffs
on certain electronic
products than India.
NTMs (More restrictive) (Less restrictive)
India is more likely to use NTMs Vietnam use NTMs to
as a form of trade protectionism promote economic
than Vietnam is. development and to attract
Import quotas: wider range of foreign investment.
products than Vietnam does. Import quotas
Import licensing requirements: Import licensing
more stringent import licensing requirements
requirements Price controls
Price controls: India imposes ⇒ fewer products
price controls on a wider range of
products than Vietnam does.
Free Trade (Fewer) (More)
Agreement India's FTAs are generally less 16
comprehensive than Vietnam's
FTAs. 14
Preferential India has PTAs in place with over Vietnam has PTAs in place
tariffs 100 countries. with over 50 countries.
Similarities:
NTMs:
 Use NTMs to protect domestic industries, consumers, and the environment.
 Wide range of NTMs in place, covering a variety of sectors.
 Most common NTMs include TBT, SPS measures, import quotas, and
import licensing requirements.
Tariffs:
 Have tariffs in place to protect domestic industries.
 Have tariffs on agricultural goods.
 Preferential tariffs with other countries.
 Free trade agreements (FTAs) with other countries.
Measures for Vietnam:
India has a number of trade policy measures in place that specifically affect
Vietnam. These measures include:
  Preferential tariffs: India offers preferential tariffs on a number of
Vietnamese goods under the India-ASEAN Free Trade Agreement (AIFTA).
These preferential tariffs have made Vietnamese goods more competitive in
the Indian market.
 Market access concessions: India has also granted a number of market
access concessions to Vietnam under the AIFTA. For example, India has
removed import quotas on a number of Vietnamese goods and has
streamlined customs procedures.
 Technical assistance and capacity building: India provides technical
assistance and capacity building to Vietnam in a number of areas related to
trade, such as trade policy formulation, trade promotion, and customs
administration.
 Joint ventures and investment: India encourages joint ventures and
investment between Indian and Vietnamese companies. This cooperation can
help to boost trade and investment between the two countries.
Trade Policy review (read only)
Tariffs:
- India's tariffs have a significant impact on global trade. India is the world's
seventh-largest importer and exporter of goods, and its tariffs can have a major
impact on the prices of goods traded around the world.
Example: India's tariffs on agricultural products have been blamed for
contributing to higher food prices in developing countries. India's tariffs on
manufactured goods have also been criticized for making it more difficult for
developing countries to export their products to India.
- The Indian government has defended its tariffs, arguing that they are necessary
to protect domestic industries from foreign competition. However, the government
has also acknowledged that some of its tariffs may be too high, and it has
committed to reducing tariffs on a number of goods.
- In 2022, the Indian government announced a reduction in tariffs on a number of
goods, including medical devices, agricultural products, and electronic products.
This was the first major reduction in tariffs in India in many years.
- The reduction in tariffs is a positive development for global trade. It will make it
easier for Indian consumers and businesses to access imported goods, and it will
also make Indian exports more competitive in foreign markets.

NTMs:
- The WTO review found that these NTMs can have a negative impact on foreign
exporters in a number of ways. For example, they can make it more difficult for
foreign exporters to enter the Indian market and they can also increase the costs of
exporting to India.
- The WTO review also found that India's NTMs can have a disproportionate
impact on developing countries. This is because developing countries often have
more difficulty complying with India's NTMs than developed countries.
- India has taken some steps to reduce the impact of its NTMs on world trade in
recent years.
Example: India has harmonized some of its technical standards with international
standards. However, more needs to be done to reduce the burden of NTMs on
foreign exporters.

- The reduction of NTMs in India would be a positive development for world trade.
It would make it easier for foreign exporters to access the Indian market and it
would also make Indian exports more competitive in foreign markets.

8. THAILAND
1. TARIFF
1. Simple Average MFN Applied Tariff (Total)
2010 2015 2019 2020 2021 2022
9.9 (22.8 - 11.0 (31.0 - 10.2 (29.0 - 10.2 (29.3 - 11.5 (31.2 - 9.7 (26.6 -
8.0) 7.7) 7.2) 7.1) 8.4) 7.1)
 2010 → 2019: fluctuated (from 2010 to 2015: increase, from 2015 to
2019: decrease).
o 2012 - 2015: recovering from The Great Recession (2007-2009)
o 2015 - 2019: Some more trade agreements came into effect, domestic
economic reform.
 2019 & 2020 remain stable - Global economic slowdown due to
COVID-19 pandemic
 2021 increase - Rebound in global economic activity
 2022 decrease - Inflation in Thailand increased significantly in 2021 &
2022 & RCEP came into effect
→ Thailand was reducing its tariffs on a wide range of goods & eliminating
tariffs on most goods traded between ASEAN member countries →
becoming more open to imports.

b. Simple Average MFN Applied Tariff (Ag & Non-Ag)

 Tariff for Ag > Non-Ag: Tariffs for Ag are ≈3 times higher than Tariff
for Non-Ag over the years.
 o Food security & Job protection: Thailand: major agricultural producer
& exporter → Gov maintains tariffs on agricultural imports to protect
domestic producers, local farmers from cheap imported agricultural
products & ensure food security.
 Extreme levels of MFN tariffs are imposed on maize, meats, fresh fruits
and vegetables, fresh cheese, and pulses such as dry peas, lentils, and
chickpeas.
o Domestic policy: The Thai government also maintains tariffs on
agricultural imports to support domestic agricultural policies, such as
price subsidies for farmers.
o Industrialization: Gov aims to promote industrialization → incentives
to manufacturers, such as tax exemptions & lower tariffs. Non-
agricultural goods are often subject to lower tariffs to encourage
industrial growth and increase the country's economic
competitiveness.
2. NON-TARIFF
a. Top 10 NTMs
 Top 3:
 Sanitary and Phytosanitary (SPS)
o SPS accounted for the biggest part of import-related NTMs (38,12% -
1,256 NTMs) (Table 4)
o Top 4 sectors with highest NTMs coverage ratio: Animal (95.37%),
Plastic or Rubber (78.26%), Vegetable (75.97%), and Food Products
(59.24% → Thailand’s NTMs were enacted to ensure public health
and the environment.
 Technological Barriers to Trade (TBT)
o Similar to the SPS measures, the primary sectors are all related to the
environment and health.
 Export-Related Measure
o Accounting for nearly 14% of total NTMs in Thailand in 2018.
Various fields were affected by export-related NTMs: for instance,
Stone and Glass, Food Products, Plastic or Rubber, Animal,...
b. Top NTMs impacts on Vietnam (mainly restrict on agricultural
products)
 Increased costs for Vietnamese businesses exporting to Thailand :
Vietnamese businesses exporting to Thailand may need to incur
additional costs to comply with Thailand's TBT, traceability, and
labeling requirements.
  Increased delays for Vietnamese businesses exporting to Thailand:
implementing traceability and labeling systems can also be complex and
time-consuming
 Reduced competitiveness of Vietnamese products in the Thai market
 Reduced market access for Vietnamese businesses

 Need to obtain a Good Manufacturing Practice (GMP) certificate from the

Thai Food and Drug Administration (TFDA) in order to continue exporting
to Thailand → time-consuming & expensive.
 A Vietnamese seafood company need to implement a traceability system that
tracks the seafood from the point of harvest to the point of sale → Complex
& expensive to implement.
 Label its products with specific information, such as the fiber content and
the country of origin may need to be displayed in Thai language.
* Although the number of NTMs in force in Thailand is higher than in other
ASEAN countries and continues to rise, most of the NTMs are technical measures
to ensure safety for all.

3. TRADE POLICY: THAILAND VS. VIET NAM

THAILAND VIETNAM
Trade policy Generally open and free export-oriented
stance trade-oriented.
FTA 14 FTAs (13 effective, 16 FTAs (15 effective),
ineffective one is RCEP), including RCEP, CPTPP,
most of them are AJCEP
multilateral
Tariffs Applies a combination of Has a tariff system that includes
(Rate: Quite the specific & ad valorem ordinary import duties,
same in 2022, tariffs, with higher rates preferential import duties, &
relatively low) on certain agricultural special preferential import
& manufacturing duties. Tariffs have been
products. significantly reduced,
especially on goods from
countries with which Vietnam
has FTAs
NTMs (Few) mandatory product (More) Vietnam has been
(both focus on standards, licenses & actively decreasing its amount
agriculture, food, quota → Has recently of NTMs→ better promoting
pharmaceuticals) focused on these to make international trade.
trade more efficient
Main trading China, Japan, US, other US, China, EU, South Korea,
partners ASEAN members other ASEAN members

4. NTMs applied to developing countries:

 Thailand offers preferential tariffs and other trade-related
incentives to developing countries. Thailand also provides technical
assistance and capacity-building support to developing countries to
help them meet Thai NTMs.
 Thailand requires importers of certain agricultural products to obtain
sustainability certification from accredited bodies.
 Number of NTMs to help it adapt to the impacts of climate change
and to reduce its greenhouse gas emissions.
 NTMs for education and skills development: Thailand applies a
number of NTMs to support the development of human resources in
developing countries. For example, Thailand offers scholarships to
students from developing countries to study in Thailand.
5. NTMs applied to developed countries:
 Thailand offers tax breaks and other incentives to foreign
companies that invest in research and development in Thailand.
 Thailand applies a number of NTMs to create a more favorable
business environment for foreign companies. For example, Thailand
offers one-stop shops and other services to streamline the foreign
investment process.
 Thailand applies a number of NTMs to promote tourism development.
For example, Thailand offers visa-on-arrival to citizens of many
countries.
 Thailand applies a number of NTMs to facilitate people-to-people
exchanges. For example, Thailand offers scholarships to students
from developed countries to study in Thailand.
 TRADE POLICY REVIEW (read only - mainly trading sector)
a. Economic Downturn In 2019, the Thai economy entered a downturn
due to the global economic slowdown and trade tensions.
b. Impact of COVID-19
 The Thai economy has been severely impacted by the COVID-19
pandemic.
 Global trade contraction has affected merchandise exports and
disrupted supply chains.
 The tourism sector has suffered a deep contraction due to travel bans
and restrictions.
 Private investment and consumption have contracted due to weak
demand and economic uncertainty.
c. Commitment to Multilateral Trading System
 Thailand remains committed to the multilateral trading system and
actively engages in WTO activities.
 It also pursues economic integration within ASEAN and through
regional trade agreements.
d. Customs and Tariffs
 Thailand has improved its customs regime and implemented the WTO
Trade Facilitation Agreement.
 Average MFN tariff has increased, and the tariff structure remains
complex.
 Certain goods are subject to prohibitions, licensing requirements, and
export duties.
e. Export Facilitation Schemes
 Thailand operates several schemes to facilitate exports, such as bonded
warehouses, duty drawback, tax and duty compensation, customs free
zones, and incentives.
 The Department of International Trade Promotion offers services to
promote Thai entrepreneurs' exports of goods and services.
f. Investment Incentives
 Thailand maintains various tax and non-tax investment incentives
schemes, including those provided by the Board of Investment and
special economic zones.
 Incentive packages have been introduced to promote activities under
the Eastern Economic Corridor Act and attract foreign businesses to
relocate to Thailand.
g. Standards and Technical Regulations
 Thailand has amended the Industrial Products Standards Act to
enforce mandatory standards through ministerial regulations.
 Thailand has developed new standards, with a significant share of
national standards being identical or similar to international
standards.
h. Trade Competition and Intellectual Property
  Thailand has enacted a Trade Competition Act to cover state
organizations and strengthen the competition authority's powers.
 Thailand has implemented reforms to its intellectual property system to
boost performance in science, technology, and innovation.
i. Agricultural Trade and Fishing Industry
 Thailand is a net exporter of agricultural commodities and has trade
protection measures in place, including higher tariffs on agricultural
products.
 Thailand has adopted measures to tackle illegal fishing and introduced
amendments to the Petroleum Act and the Fisheries Act.
j. Tourism as the main foreign exchange earner
 In 2019, travel services generated USD 60.5 billion, or 73.8% of total
services exports.
 The tourism sector has been adversely impacted by the COVID-19
travel restrictions.

9. AUSTRALIA
1. Tariffs and changes in TM

 2010: Simple av final bound: 10.0 / Simple MFN applied: 2.8

 The simple average bound tariff is 10.7% for non-agricultural products,
(high bound rates for clothing), and significantly lower bound tariffs on
agricultural products.
 Australia's average applied MFN tariff declined from 2010 to 2022,
due to:
 Australia trade liberalisation
 reflecting its participation in the ITA expansion (lquan
technological products) in 2016
 unilateral tariff cuts (cái này là Australia nó tự tiến hành từ 1986 -
2016 luôn) trên nhiều lĩnh vực. In 2015 có thêm: textiles, clothing
and footwear articles.
 CPTPP in 2018
 Other multilateral & regional agreements: ASEAN, Malay, Korea,
Japan, China
  The current average applied tariff is lower for agricultural products
than for other goods.
 The MFN tariff structure is very simple, as almost all goods face a
tariff rate of either zero or 5% ad valorem.
 Australia is active in enacting anti-dumping measures.
 Australia applies economic sanctions that affect transactions with
certain countries or entities. (On 19 May 2023, the Australian
Government (Government) announced plans to impose a ban on the
export of all machinery and related parts to Russia and areas of Ukraine
temporarily under Russian control.)

2. Non-tariff measures
Australia is a big producer – and exporter – of agricultural goods and, whilst many
of the NTMs doubtless exist for SPS and food safety reasons, they also tend to
serve the interests of domestic producers.
 Top 3 NTMs:
 TBT (54,56%): the most common types of NTMs are product standard
requirements for TBT reasons (B7), testing (B82), and labelling
requirements (B31). ⇒ labelling requirements in Australia là quan trọng gần
như bậc nhất (là main NTM)
 SPS (15,39%): The entry into force of the Biosecurity Act constitutes a
major recent development in the area of sanitary and phytosanitary
measures (SPS) in Australia.
o The Imported Food Control Act was amended → improved
monitoring and management of new food safety risks. The revised
Act increases importers' accountability for the safety and the source of
their food.
 Export-related measures (24,67%) With respect to exports, the most
common types of NTMs are licensing or permit requirements to export
(P13) export technical measures not elsewhere specified (P69) , and export
taxes and charges (P5). Mặt hàng agricultural xuất khẩu nhiều nhất là meat
(14.7%)

3. Comparison with Vietnam Trade Policy

Vietnam Australia
Tariff rates The simple average applied MFN The current average
 tariff was higher for agricultural applied tariff is lower
products and lower for other for agricultural products
products. Tariff rate quotas regulate than for other goods.
imports of eggs, sugar cane,
tobacco, and salt.

Trade Both nations participate in ITA. VN has 16 FTAs, while Aus has
Agreements 18 FTAs. VN and Aus both participate in AANZFTA, CPTPP
and the RCEP.
Trade Policy export-oriented advocate for an open
Stance international economy
Main trading China, US, Korea, Japan China, Japan, South
partners Korea, India
Top 3 NTMs Top 3: sps, tbt, export-related  TBT
More non-tariff measures, such as  SPS
technical standards and import  Export-related
quotas → Vietnam has been actively measures
decreasing its amount of NTMs in Mainly TBTs, notice là
order to promote international TBTs ở Úc cao hơn so với
trade better. các nước khác (đọc thêm
ở phần NTMs ở trên)

4. Trade policy review (executive hơn cả executive summary)

 The deficit in trade in services also declined due to a sustained increase in
travel receipts, tourism and education-related exports. About 62% of
Australia's imports are sourced in Asian countries.
 Australia seeks trade agreements that improve market access and
investment opportunities, and stimulate the competitiveness of Australian
firms. During the period under review, important new RTAs entered into
force, namely the (CPTPP) and free trade agreements (FTAs) with Japan
and China. In addition, agreements with Hong Kong, China; Peru; and
Indonesia, as well as the Pacific Agreement on Closer Economic Relations
Plus (Pacer Plus), were signed but are not yet in force. Further FTAs are
under negotiation with the European Union, the Gulf Cooperation Council,
and India. Australia is participating in the efforts to form the Pacific
 Alliance Free Trade Agreement and the Regional Comprehensive Economic
Partnership.
 The MFN tariff structure is very simple, as almost all goods face a tariff rate
of either zero or 5% ad valorem.
 Australia is an active user of anti-dumping and countervailing measures by
international comparison.
 Australia considers intellectual property (IP) integral to its international
trade policy and of increasing importance to the economy
 Agriculture makes a significant contribution to the economy, and
represents around 14% of total merchandise exports. Support to the sector
is limited, as Australia does not provide market price support.
 Manufacturing, which accounts for nearly 6% of GDP and 7.4% of
employment, experienced declining competitiveness due to high costs for
energy and other inputs, and tighter credit conditions.
 Tourism is a sector of growing economic importance, and source of
employment, particularly in regional Australia.

10. CANADA
 Tariff
 The 2022 simple average MFN applied tariff is 3.8% (14.6% for
agriculture and 2.0% for non-agriculture).
Simple
average
Year MFN Analysis
applied
tariff (%)
Due to the effect of the global financial crisis of 2008-
2011 4.5 2009, the Canada Government raised the tariff rate in order
to protect domestic industries.
The reduction suggests a move towards more liberal
trade policies Canada's participation in trade agreements
2016 4.1 like NAFTA enhances trade and economic growth by
making imported goods more affordable for consumers and
promoting exports.
2019 3.9 - The change in tariff rate over this period was
relatively small.
2020 3.9
 2021 4.0

2022 3.8 - Some factors:

 Trade agreements: Canada implemented a number of
trade agreements during this period, including
(CETA), the (CPTPP), and the Canada-United States-
Mexico Agreement (CUSMA)=> lower tariff rates for
a variety of goods and services.
 Domestic economic conditions: The Canadian

 Non-tariff measures (NTMs)

o Top 3 NTMs of Canada and their impacts on Vietnam’s exports

to Canada:
Technical barriers to trade (TBTs)
 The Canadian Standards Association (CSA) and Health Canada are some of
the authorities responsible for implementing and maintaining these
standards.
 Canada has a number of TBTs in place, such as:
 Food safety standards
 Environmental standards
 Impacts on Vietnam:
 Increased compliance costs
 Market access barriers
Price-control measures, including additional taxes and charges
 Canada employs price-control measures to manage the pricing of certain
goods, primarily in sectors like agriculture and healthcare. These measures
can include import duties, excise taxes, and price controls on specific
products.
 Impacts on Vietnam:
  Price increases: increase the overall cost of Vietnamese goods in
Canada, potentially making them less attractive to price-sensitive
consumers.
 Profit margins: Vietnamese exporters may experience reduced profit
margins due to increased taxation, especially if they cannot pass these
additional costs on to consumers.
 Consumer demand: Higher prices may lead to decreased demand for
certain Vietnamese products
Export-related measures
 Canada enforces various measures related to the export of goods. These
measures are designed to control the flow of certain goods out of the
country, often for reasons of national security, foreign policy, or
international obligations.
 Export permits and licenses may be required for specific items, such as
military equipment or controlled technologies. The Export Control List
(ECL), administered by Global Affairs Canada, outlines items subject to
export controls.
 Impacts on Vietnam:
 Market Access Restrictions
 Administrative Burdens
 Subsidy Scrutiny

 Compare with Vietnam’s trade policy
Characteristics CANADA VIETNAM
Tariff rates Lower Higher
The simple average MFN applied The simple average MFN
tariff is 3.8% (2022) applied tariff is 9.6%
(2022)
FTAs Canada has 15 FTAs with 51 Viet Nam has already
different countries => Canadian signed 15 FTAs and is
exporters have access to a wider negotiating on other 4 trade
range of markets than deals. Vietnam has placed a
Vietnamese exporters. strong emphasis on
regional economic
integration, particularly
within the Asia-Pacific
region, e.g. CPTPP,
ATIGA)
 NTMs Canada has a number of NTMs Vietnam also has a number
in place, including TBTs, price- of NTMs in place.
control measures, and export- However, Vietnam's NTMs
related measures. are generally more
restrictive than Canada's
NTMs.
Main United States (77% of total China, US, Republic of
trading Canadian exports), China, UK, Korea, Japan, Thailand
partners Japan
 Canada’s trade policy review (2019): Link
 Tariff rate quotas (TRQs) are applied on 159 tariff lines, including dairy
products, poultry and egg products, beef and veal, and certain wheat and
barley products. Some 99.7% of tariff lines are bound; the exceptions
comprise products such as gas, petroleum, electrical energy, and vessels. A
wide range of tariff and tax exemptions are provided under specific
regulations.
 The simple average tariff for FTA partners is slightly over 3.0% (e.g. 3.7%
for CPTPP partners, 3.3% for the EU and Ukraine).
 The simple average preferential rates for agri products remain high mainly
due to exceptions from preferences for certain agri products such as dairy
produce, and meat and fish products. On the other hand, tariffs on non-agri
products are nearly all zero.
 Canada continues to be active user of trade remedies.
 Regarding the application of SPSs, the Safe Food for Canadians Act (SFCA)
and the Safe Food for Canadians Regulations (SFCR) came into effect on
15/01/2019, representing the most important revision of food safety
regulations in 25 years.