The Ministry of Industry and Trade recently issued Decision 2536/QD-BCT on the amount of tariff quotas for textiles and garments exported to Mexico in 2023 under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
According to this decision, there will be:
- 250,000 kg of yarn
- 2,500,000 pieces of knitted clothes
- 750,000 pieces of woven clothes
- 50,000 pieces of baby diapers made from synthetic fibers and textiles exported to Mexico in 2023 under the CPTPP. The decision is effective until December 31, 2023.
The Import-Export Department (Ministry of Industry and Trade) stated that traders wishing to be granted export certificates for textiles and garments to Mexico to enjoy export tariff quotas under CPTPP in 2023 according to this Decision must comply with Circular No. 07/2019/TT-BCT dated April 19, 2019 of the Ministry of Industry and Trade regulating the export of textiles and garments to Mexico under CPTPP.
Traders exporting textiles and garments to Mexico under CPTPP (including traders exporting under tariff quotas and traders exporting without tariff quotas) must register information with the Ministry of Industry and Trade to implement the mechanism for monitoring textiles and garments exported to Mexico under CPTPP.
In the CPTPP Agreement, Mexico commits to eliminating 77% of tariff lines from January 14, 2018, equivalent to 36.5% of import turnover from Vietnam, and will eliminate tariffs on 98% of tariff lines in the 10th year from the entry into force of the agreement.
Vietnamese textiles and garments can take advantage of tax incentives in the CPTPP Agreement to boost exports to Mexico. In 2022, textile and garment exports to CPTPP markets reached nearly 6.5 billion USD, an increase of 29.6% compared to 2021, of which, exports to markets having an FTA with Vietnam for the first time such as Mexico and Canada grew at high levels, double digits.
The Ministry of Industry and Trade also said that 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 from new generation FTAs.