Europe-Vietnam Free Trade Agreement (EVFTA) was ratified on June 8th,2020
On June 8th 2020, Socialist Republic of Vietnam officially ratified the EU-Vietnam Free Trade Agreement (EVFTA) with 100% approval of Vietnamese National Assembly and will soon go into effect in July 2020 tentatively.
EVFTA marked a turning-point in the EU’s longer-term goal of co-operation between EU and Vietnam trade deal. The agreement includes 17 chapters, two protocols and several attached memorandums, with main contents covering the following aspects: trade in goods; services, investment liberalization, e-commerce; Government procurement and Intellectual property right. The key aspect is the dismantling of customs barriers and the facilitation of European-Vietnamese trade relations which will eliminate 99 percent of tariffs on trading-goods from two sides. In the details:
The European Union (EU) will remove approximately 85.6% of tariff lines, equivalent to 70.3% of export turnover of Vietnam to EU; abolish import duties on 99.2% of tariff lines, equivalent to 99.7% of export turnover of Vietnam after 7 years from the entry into force. For about 0.3% remaining exports, the EU pledged to provide Vietnam with tariff quotas in the quota import tax to 0%
Vietnam has also committed eliminate 48.5% of tariff lines, equivalent to 64.5% of EU imports immediately after the agreement comes into force , after seven years, 91.8% of the tariff lines, equivalent to 97.1% of EU export revenue, will be removed and after 10 years is about 99% of tariff lines, equivalent to 99.8% of EU imports.
The Agreement will bring advantages to both European and Vietnamese enterprises immediately after coming into effect: Vietnam will cutting 65% of import tax on EU commodities and the EU will cut more than 70% of tariffs on Viet Nam’s commodities. The rest will be erased over a 10-year period and 7-year period respectively.
EVFTA will create abundant chances for Vietnamese development and be a leap to the economics and co-operation of Vietnam – EU.
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