Trade Agreement Entered Into Force
As soon as NAFTA enters into force, 49% of EU export tariffs to Vietnam will be released, while the remaining exports will be phased out over a 10-year period (excluding some products). Products that will be duty-free from day one include exports of almost all machinery and appliances, chemicals, all textiles and half of EU pharmaceutical exports. As soon as the agreement comes into force, 85% of import duties will be removed, with the remainder abolished over a seven-year period. Textile products, clothing and footwear, which are currently Vietnam`s main imports, are examples of imports that will benefit from the agreement. These products will be tariff-free either immediately or after three years, while sensitive products will be liberalized after 7 years. Although many products imported from Vietnam already benefit from the Generalized Preference System (GSP), preferential treatment under the free trade agreement is often more advantageous. The GSP will remain in force for two years after the ENA comes into force, with only the CEFTA applicable. The free trade agreement between the United States and Singapore came into force on January 1, 2004. The agreement provided for the immediate abolition of all tariffs on U.S. products. Most U.S. tariffs on Singapore products were removed immediately after the agreement came into force and the remaining tariffs were removed over a period of 3 to 10 years.
European Commission President Ursula von der Leyen said: „The European economy needs every opportunity to restore its strength after the coronavirus crisis. Trade agreements, like those that are effective with Vietnam, offer our companies the opportunity to create new domestic markets and create jobs for Europeans. EVFTA is considered the most ambitious trade agreement ever concluded by the EU with a developing country, which eliminates 99% of tariffs. In addition, guarantees of respect for workers` rights, environmental protection and the Paris climate agreement will be guaranteed by strong, legally binding and enforceable provisions on sustainable development. What each partner country must do to comply with the agreement depends, beyond ratification, on its specific laws and regulations. Before the agreement comes into force, each country must be able to prove that it is fulfilling the obligations that come into force on the first day.