EU and Vietnam Officially Sign FTA Deal

Trade & Policy

EU and Vietnam Officially Sign FTA Deal

After more than two and half years of talks and 14 rounds of negotiations, European Union and Vietnam have finally signed the Free Trade Agreement (FTA) on December 2^nd in Brussels, Belgium. The FTA will eliminate nearly all the tariffs between the two economies once implemented. Both the economies would have two years for preparations and complete all the necessary procedures and legal reforms, before it officially enters into force in 2018.

Vietnam exports textiles, footwear, electronics and agro-produce – including coffee, rice and seafood – to the EU, while importing high-tech products like electrical machinery and equipment, aircraft, vehicles and pharmaceuticals from the European partners.

This is the first time EU has signed a FTA with a developing country and the FTA will eliminate nearly 99% of tariffs on the goods exported between the two economies over a period of up to seven years. Vietnam will be eliminating the tariffs for EU for 10 years, which in fact is good opportunity for the Vietnamese exporters to create their own space in the European market.