UK to recognize Vietnam’s market economy

The U.K. is set to recognize that Vietnam’s industries are operating in a market economy and will not impose unfavorable rules should they be investigated under trade defense measures.

The Trade Remedies Authority of Vietnam said that the U.K. will announce the recognition after joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) last week.

If an export country is not regarded as a market economy, the import country can reference a third country market economy to determine the trade duties on the export country. This could lead to higher trade duties, the authority said.

When recognized as a market economy, Vietnamese goods will be treated fairer and exporters will gain more access to other markets, it added.

71 countries and territories now recognize Vietnam as a market economy.

The U.K. last week became the 12nd country to join the CPTPP, its biggest trade pact since its exit from the E.U.

Vietnam’s exports to the U.K. rose 9.5% to $5.2 billion last year.