Eaeu Vietnam Free Trade Agreement

The free trade agreement signed more than a year and a half ago between Vietnam and the Eurasian Economic Union (UN-EAEU Free Trade Agreement) has led to a rapid growth in bilateral trade between Vietnam and EAEU. The free trade agreement opened a market of 183 million people for a total GDP of $2.2 trillion for Vietnamese businesses. According to Nikishina, EAEU`s trade with Vietnam has increased by 40% since the agreement came into force. «Some feared that our exports would remain the same, that we would not be able to take advantage of the opening of the Vietnamese market; Some feared that we would only open our market in Vietnam. These fears proved to be unfounded: our exports increased by 40%, while imports from Vietnam increased by 34%. By 2025, duty-free imports of Vietnamese products will account for 90% of EAEU`s common tariff lines. Negotiations are under way for free trade agreements with several states. Serbia will be the next country to sign a free trade agreement with the EAEU (the free trade agreement was signed on October 25, 2019 – Ed.). Serbia`s Deputy Prime Minister and Trade, Tourism and Telecommunications Minister Rasim Ljajia said the EAEU-Serbia free trade agreement would be signed in Moscow at the end of October 2019. In May 2019, the Higher Council gave the EAEU a mandate to sign the agreement. «The EAEU is an emerging tax-exempt zone that will have a significant impact on Chinese and Asian trade with the West,» says Chris Devonshire-Ellis of Dezan Shira Associates. «China is also in the process of concluding a free trade agreement with the EAEU, and India, Singapore and many other Asian countries have also accelerated the EAEU free trade agreement. Given that Russia and Belarus border the EU, the impact of duty-free goods arriving at Europe`s borders will provide considerable opportunities for both large and small traders and service providers such as reconditioning, inventory, sales and logistics, which specialise in Euro-Asian trade and services.

«We are pleased to announce that all ratification procedures have been completed and that the free trade agreement between the Eurasian Economic Union and Vietnam will enter into force on 5 October,» said Veronika Nikishina, EEC Minister for Trade. «As of October 5, a large part of the goods our countries are doing will have lowered tariffs.» The agreement takes due account of the experience gained in working on documents already signed and also covers potential business risks. During the negotiations, special attention was paid to products sensitive to the EAEU market. EAEU Trade Minister Veronika Nikishina stressed that products such as «beef, cheese, spirits, baby food, dairy products, cars, planes – all this will be excluded from the agreement, we will not lower tariffs on these products.» The agreement takes due account of the experience gained in working on documents already signed and also covers potential business risks.

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