The impact of TPP and RCEP on tea exports from Vietnam: the case of tariff elimination and pesticide policy cooperation

摘要

Regional trade agreements are the dominant arrangement for economic integration. What does a dual membership mean for countries participating in multiple regional negotiations? We address the question from the perspective of tea exporters in Vietnam, a member of both the Trans-Pacific Partnership (TPP) and the Regional Comprehensive Economic Partnership (RCEP). Focusing on the removal of tariffs and the cooperation on pesticide residue standards, we find that the TPP agreement will raise Vietnam's tea exports by about $4 million a year if TPP endorses Codex standards. However, Vietnamese tea exports will decline if TPP endorses American standards, unless sufficient technical assistance is provided. After the RCEP agreement takes effect, tea exporters from China and India will further penetrate the TPP markets by re-exporting from Vietnam.