The European Union (EU) will remove 85.6% of tariff lines for Vietnam’s goods exports immediately after a bilateral free trade agreement (FTA) between the two sides comes into force.
The percentage of duty exemptions is equivalent to 70.3% of Vietnam’s exports to the EU, according to the inter-sectorial steering committee for international economic integration. Vietnam and the EU have achieved more results for trade in goods than other sectors.
Last week, Vietnam and the EU said they had reached an agreement in principle on the FTA. Days after, the committee said the EU would remove 99.2% of tariff lines, or 99.7% of Vietnam’s goods shipped to that market seven years after the trade accord takes effect.
Concerning major export products like apparel, footwear and seafood (except for canned tuna and fish balls), the EU will lift all import taxes for Vietnam in seven years after the agreement takes effect. With canned tuna, the EU agrees to give Vietnam an import quota.
Vietnam’s husked, unhusked and fragrant rice under the quota allocated by the EU will enjoy zero tax. Besides, the import tax charged on broken rice will be cut gradually and products made of rice will be brought down to 0% over a period of seven years.
Processed vegetables, fruits and fruit juice, bags, suitcases, plastic products, ceramics and honey will be subject to import tax exemptions right after the agreement takes effect.
Meanwhile, Vietnam is committed to lowering duties on autos and motorcycles imported from the EU to 0% in 9-10 years. The tax reduction road map for motorcycles with engine capacities of over 150 cubic meters will last seven years.
Vietnam will lift taxes on imports of wines, brandies, beer, pork and chicken products from the EU over a maximum of ten years.
Vietnam and the EU have reached agreement on issues concerning customs procedures, trade safeguard and export-import facilitation.
Regarding services and investment, both parties have pledged to create a favorable environment and facilitate operations of companies with commitments higher than those for the global trade club WTO.
Vietnam will provide favorable conditions for EU firms to further tap potential in finance, telecom, transport and distribution sectors.
Both sides have agreed contents equivalent to the WTO’s agreement on government procurement. The EU will provide technical assistance for Vietnam to fulfill obligations related to online bidding, and establishment of an online portal for bidding information.
Vietnam reserves the right to save a proportion of bidding packages for local contractors, goods, services and laborers in a limited period of time.
Vietnam will protect 160 geographical indications of the EU while the EU will do the same for Vietnam’s 39 geographical indications concerning farm produce and food.
(Source: VietNamNet Bridge)