EVFTA will enlarge the access of EU food and beverage products to Vietnam. (Photo: www.conventuslaw.com)
ropean Union (EU) and Vietnam on 2 December finalized talks for a free trade agreement (FTA
) that will give greater access to EU exports of wine, spirits, meat and dairy products to Vietnam, where the consumerism and the middle class are on the rise.
Under the FTA, tariffs on European beef exports to Vietnam will be abolished in the next three years while tariffs on dairy exports will be removed in a five-year roadmap. Tariffs on chicken will be given duty free access to the Vietnamese market within 10 years, while wines, spirits, frozen pork and food preparations will enjoy full access within seven years, according to www.farmersjournal.ie.
Up to 99% of tariffs on goods from/to economies will be removed. Vietnam will liberalize 65% of import duties on EU exports to Vietnam at entry into force, with the remainder of duties being gradually eliminated over a 10-year period. Meanwhile, the EU duties will be eliminated over a 7-year timeline.
The trade pact is expected to enter into force by the end of 2017 or early 2018 after respective legislative bodies of Vietnam and 28 EU countries ratify it.
“Vietnam is a vibrant economy of more than 90 million consumers with a growing middle class and a young and dynamic workforce. Its market has great potential and offers numerous opportunities for the EU’s agricultural, industrial and services exports,” said EU Trade Commissioner Cecilia Malmström.
“It [the FTA] opens the door of Vietnam to the EU’s agricultural, industrial and services sectors while also helping Vietnam’s further integration into the global economy,” said Pham Hong Hai, CEO of HSBC