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Vietnam officially signed FTA with Asian Economic Union – Europe
04/06/2015

Evening of 29/5, at Kazakhsatn, Prime Minister Nguyen Tan Dung on behalf of the Government of Vietnam has officially signed a free trade agreement (FTA) between Vietnam and the member countries of Economic Alliance Asia – Europe ( EEU), which include Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan.

Initiated from May 3/2013, after about two years of negotiations and after completion of internal approval procedures, the parties have signed FTAs with comprehensive scope, high level of commitment and guarantee benefit balance, taking into account the specific conditions of each party.

Agreement includes chapters on trade in goods, rules of origin, trade remedies, trade in services, investment, intellectual property, measures for food safety and quarantine Animals (SPS), Technical Barriers to Trade (TBT), electronic technology in commercial, competition, legal and institutional.

Regarding commodities, Asian Economic Union – Europe for Vietnam incentives and create more opportunities for important export commodity and Vietnam have basic benefits such as agricultural and industrial goods such as textiles footwear, furniture and some processed products.

An important part of this agreement is the Union would apply the tax rate of 0% for all seafood products in Vietnam soon as the agreement takes effect.

Along with the elimination of tariffs, the two sides will actively implement programs of SPS, including the contents of equivalence for the treatment or management systems in related fields, mutual recognition on the concept of adaptation to regional conditions and use of audit results, information of major international organizations; promoting cooperation and implementing initiatives and trade facilitation, technical assistance and establishing effective mechanisms for consultation between the two parties.

Vietnam side agreed to open the market for the Union roadmap for some livestock products, some industrial commodities including machinery, equipment, vehicles …

These goods are generally not compete with Vietnam goods which in return contribute to further diversification of the domestic consumer market.

As for agricultural commodities, but commodities are considered eligible for the Union priority and has been Vietnam agreed to open immediately, such as milk and dairy products, some cereals products. .., but in the present context, agricultural production because of the service you are primarily domestic needs and not focusing on agricultural exports, to predict the first 5 years of implementation of the agreement, agriculture Vietnam will now not significantly affected by the import of agricultural products from the Union.

Overall, the two sides are expected for each level of market opening in goods accounted for about 90% of tariff lines, equivalent to over 90% of bilateral trade.

According to the initial assessment of the Union, after the agreement takes effect, exports and imports both sides will reach 10-12 billion USD in 2020 (in 2014 reached about $ 4 billion).

According to estimates of Vietnam, exports from Vietnam to the Union will increase by 18-20% annually.

The content of intellectual property, competition, sustainable development … of the agreement largely cooperative and not exceed Vietnam’s commitments in the WTO and in the FTA signed or under negotiation , creating the framework for the two sides may consider further cooperation when appropriate.

EEU is a population of over 175 million people with a GDP of US $ 2,500 billion.

In the next phase, when making EEUV-FTA agreement with the Union to eliminate tariffs immediately on several groups of key export commodities have large turnover of Vietnam to the Union, such as textiles, footwear, agricultural, fisheries, electronics … will facilitate Vietnam businesses expand markets, while contributing significantly increase export turnover of Vietnam to this market.

Speaking after the signing ceremony, Prime Minister Nguyen Tan Dung said: “The agreements signed today give Vietnam the honor to become the first international partner to sign free trade agreements with the Union. The agreement also represents the strategic vision of the Union to develop cooperation with the Asia – Pacific dynamism, a driver of global economic growth. “

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