Challenges from RCEP for Vietnam's exports to the New Zealand market
- The increasing competition pressure with other RCEP members
In addition to the expected opportunities, RCEP also poses certain challenges for Vietnam, especially from the perspective of competitive pressure in the New Zealand market. Because RCEP opens up opportunities to access the New Zealand market with preferential tariffs/rules of origin for all member countries, not just Vietnam. This means that Vietnam's export goods in the New Zealand market will face fiercer competition from many rivals in the RCEP region, especially countries with similar export product structures and direct competition with Vietnam.
- Other regular challenges
In addition to the challenges associated with RCEP, Vietnam's exports to New Zealand also face many other regular challenges, especially non-tariff measures (Non-Tariff Measures - NTMs).
"Non-tariff measures" are measures other than tariffs that countries apply to goods moving across borders. In theory, these measures are used for each country's legitimate management goals (protecting human health and life, food safety and hygiene, protecting the environment, etc.). However, in many cases, NTMs can be abused as a form of restricting imports.
New Zealand's NTMs applied to imported goods in general (not just goods from Vietnam) are not related to RCEP. However, the need to eliminate tariffs as committed and more favorable rules of origin may be the driving force for increasing NTM to "compensate", causing Vietnamese exports to face more stringent requirements and demands from the New Zealand market.
Source: Center for WTO and International Trade
