ISLAMABAD: Pakistan has decided to grant Vietnam full market status as part of its strategy to develop better economic and trade relations in the ASEAN region, official sources told Business Recorder. Vietnam is one of the important members of ASEAN and an emerging economy in the Asia and Pacific region after China.
The sources said Ministry of Commerce is interacting with Vietnam through the forum of Joint Commission on Trade (JTC) to explore avenues of economic and trade cooperation. During the inaugural session of Pakistan-Vietnam JTC held at Hanoi, Vietnam, on July 28, 2011, the Government of Vietnam requested Pakistan for the grant of market economy status. Vietnam has also sent its request to the Ministry of Commerce through diplomatic channels.
According to sources Vietnam is considered as an economy in transition, which means that Vietnam is in the process of moving from a centrally planned to market economy model. For economies in transition, Pakistan applies more rigorous procedures for determining the normal value of goods while investigating anti-dumping and safeguard measures. However, according to the accession Protocol of Vietnam for the WTO, approved by the General Council of the WTO on November 7, 2006, the WTO members will consider Vietnam as an economy in transition till December 31, 2018.
The sources said the request of Vietnam for the grant of status of full market economy was circulated to the National Tariff Commission (NTC), Ministry of Industry, Ministry of Production and Ministry of Foreign Affairs. The stakeholder ministries/organisations support the grant of full market economy status to Vietnam.
"In our 'Look East Policy' we are striving to seek better economic and trade relations in the ASEAN region. The grant of market economy status to Vietnam will not have a direct impact on Pakistan's exports; but this concession could be leveraged for initiating negotiations for a Preferential Trade Agreement (PTA) and even more importantly, for forging closer economic and trade relationship with the ASEAN community," said an official of Commerce Ministry on condition of anonymity.
So far 23 members of the WTO including India, Australia, Korea and South Africa have granted market economy status to Vietnam. As the GoP approves the proposal formally, a Memorandum of Understanding (MoU) recognising Vietnam as market economy will be signed by Pakistan at a date and venue to be agreed through diplomatic channels. The sources said Ministry of Law, Justice and Parliamentary has already vetted the MoU.