Cuts will create favorable conditions for businesses on both sides to access markets for goods and services.
After the EU - Vietnam Free Trade Agreement (EVFTA) is formally signed 99 per cent of tariff lines will be eliminated according to ten-year schedule for Vietnam and a seven-year schedule for the EU, Head of the EU Delegation to Vietnam Mr. Franz Jessen told a press conference on August 5.
Mr. Jessen spoke of the significance and importance of the agreement, which will promote bilateral trade relations to new heights and enhance two-way trade turnover many-fold compared with the $28 billion recorded in 2014. The removal of 99 per cent of tariff lines will create opportunities for access to new markets in services and investment.
The agreement is a major step towards a bilateral agreement between the EU and ASEAN, he added, and will be second between the EU and a member of ASEAN, following the FTA signed with Singapore in 2014.
He also acknowledged Vietnam’s efforts in negotiating the FTA.
In a telephone conversation with Minister of Industry and Trade Vu Huy Hoang, EU Trade Commissioner Cecilia Malmstrom said that the finely balanced agreement will boost trade with one of Asia’s most dynamic economies. “It sets a new, better and modern model for FTAs between the EU and developing countries and establishes a good standard for the trade relationship between the EU and Southeast Asia as a whole,” she said.
Once the agreement comes into being, she added, it will bring significant opportunities for businesses on both sides through enhancing market access for goods and services.