Eurasian Economic Union -Entered into force an agreement on free trade zone between the Eurasian Economic Union and Vietnam

October 5 came into force an agreement on free trade zone between the Eurasian Economic Union and Vietnam.

The agreement we are talking primarily about the mutual abolition of trade tariffs. According to the document, the abolition of import duties Vietnamese side does not cover only 12% of the commodity nomenclature, the majority of which Union no export interest. Moreover, the agreement obliges Vietnam to cancel the suppliers of the Member States import duties by more than 59% of positions at once, and in respect of an additional 29% import duty rates will be reset during transition periods, which range from 5 to 10 years.

According to the agreement, Vietnam opens the market for many products of export interest of countries of the Union:

Agricultural sectors: beef, pork and poultry meat processed products, canned fish, seeds, flour, dairy products, cheese, vegetable oil, animal feed, alcoholic beverages;

The industrial sector: Precious stones, tires, asbestos, pipes, rolling, vehicles, mechanical equipment, electronic equipment, automobile parts, steel products, agricultural machinery, buses, cars, trucks, oil.

The agreement creates the conditions that, in the framework of a free trade zone trade increased and diversified.

"The agreement is beneficial to the parties and create favorable conditions for our importers, manufacturers using Vietnamese ingredients in the manufacture of their own products. The arithmetic mean rate of duty on imported from Vietnam to EAEC products will decrease in 2025 to 2%. Conditions of access of goods Union to the Vietnamese market are not worse than for other key partners in the Free Trade of Vietnam, which will allow manufacturers EAEC better compete in this market . At the same time Member States retain duties on the most sensitive products for our common market. The agreement does not require us to reduce the duties on meat, milk, tea, coffee, sugar, pipes, airplanes, cars, "- said the Minister of Trade of the Eurasian Economic Commission for Veronica Nikishin.

The agreement provided, and "safety" mechanisms against unfair competition and uncontrolled growth of imports. For a number of light industrial products and furniture provides a trigger mechanism to introduce tariff protection in the case of excess supply of certain volumes of Vietnam. And it provided an opportunity to apply bilateral safeguard measures (set fees at a level rate of the single customs tariff), if during the transition period due to increased free trade regime imports could harm the industry of the Member States. Today, already built a procedure in the Union, which will allow us to apply such "safety" mechanisms if necessary.

The document also recorded clear criteria for origin of the goods and their enforcement. To do this, create a complex administrative arrangements, information cooperation between the supervisory authorities of the countries of free trade zone, as well as verification procedures are introduced.

In addition, the agreement regulates the conditions for cooperation in the areas of protection of intellectual property rights, sustainable development, e-commerce, as well as in the field of public procurement; set common principles for the protection of competition.

The agreement applies to the terms of trade in services and investment cooperation. However, these provisions concern only the relations between Russia and Vietnam. Other countries of the Union may subsequently accede to these agreements.

According to expert estimates, the savings on fees for exporters of the Eurasian Economic Union could be around $ 40 million. In the first year of functioning of the agreement. At the end of the transitional periods the positive effects of the abolition of customs duties is expected to reach 55-60 million USD. Per year.