Vietnam and European Union sign free-trade agreement

The deal will see the EU lift 85 per cent of its tariffs on Vietnamese goods, while Vietnam will lift 49 per cent of its import duties on EU exports, with other easing of tariffs to take place over the next decade

The agreement is expected to accelerate greater trade volume and create vast opportunities for businesses and consumers on both sides

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European Commissioner for Trade Cecilia Malmstrom, Romania’s Business, Trade and Enterpreneurship Minister Stefan Radu Oprea and Vietnam’s Industry and Trade Minister Tran Tuan Anh. Photo: Reuters

Published: 9:09pm, 30 Jun 2019Updated: 9:09pm, 30 Jun 2019

Vietnam and the European Union signed a free-trade agreement on Sunday, opening opportunities to further boost trade between the euro bloc and one of Southeast Asia’s biggest manufacturing nations.

The agreement, which was signed by European Commissioner for Trade Cecilia Malmstrom and Vietnamese Trade Minister Tran Tuan Anh in Hanoi, will eliminate almost all tariffs for goods traded between Vietnam and the EU’s 28 member countries.

“It is a special day for relations between the EU and Vietnam. The agreement has opened a new horizon for the development of both sides,” Vietnamese Prime Minister Nguyen Xuan Phuc said after he witnessed the signing.

Once the deal takes effect, the EU will lift 85 per cent of its tariffs on Vietnamese goods, gradually cutting the rest over the following seven years.

Meanwhile, Vietnam will lift 49 per cent of its import duties on EU exports when the agreement is started. The rest will be phased out over 10 years.

Vietnam, with a population of 95 million, is one of the world’s fastest-growing economies, and the agreement is expected to accelerate greater trade volume and create vast opportunities for businesses and consumers on both sides.