Mexico commits to open its market to Vietnamese seafood which will enjoy the least amount of customs duties as compared to other members of CPTPP.
The period of elimination and removal of tariffs
In particular, Mexico divides Vietnamese seafood into two groups and commits the elimination and removal of tariffs as below:
Close to 41% of Vietnamese seafood products (106/255) will be duty free at entry into force. The elimination and removal of tariffs will be carried out after 3 or 16 years at the entry to force in accordance with some tariffs. In particular:
Remove duties of 106/255 Vietnamese seafood Products after the treaty becomes effective.
Eliminate and remove 17/255 duties (imposed on frozen fish, frozen tilapia fillet, cod, pollack, flounder, herring, and tuna after 3 years.
Eliminate and remove 17/255 duties (imposed on rainbow trout, tilapia, carp, catfish, pollack, horse mackerel, blue cod, ray, and crab after 5 years.
Eliminate and remove 87/255 duties within 10 years.
Eliminate and remove 6/255 duties within 12 years.
Eliminate and remove 4/255 duties within 13 years.
Eliminate and remove 5/255 duties (imposed on rock lobster of all kinds, unsmoked marine shrimp, lobster, stored shrimp) after 15 years.
Eliminate and remove 13/255 duties (imposed on unsmoked shrimp, canned herring, stored eel) after 16 years.
Before CPTPP, Vietnam and Mexico didn’t enter any free trade agreement, that’s why Vietnamese seafood products going into Mexico have been imposed the same MFN with other WTO’s members.
The MFN tariff that Mexico imposed on imported seafood products is high. In particular, the average MFN tariff was given in 2018 as below:
13,51% on fresh seafood (Chapter 3).
18% on aquatic products HS. 16.04, 16.05.
Thus, CPTPP is expected to bring a great deal of tariff benefits to Vietnamese seafood products entering this market.