VN-EEU FTA to come into force since October 5

VGP – The The Viet Nam-Eurasia Economic Union Free Trade Agreement (VN-EAEU FTA) will take effect on October 5, 20t16, according to the Ministry of Industry and Trade (MoIT).

August 19, 2016 3:06 PM GMT+7

The FTA between Viet Nam and the Eurasia Economic Union (the Russian Federation, Belarus, Kazakhstan, Armenia, and Kyrgyzstan was kick-started in March 2013. After eight official rounds of negotiations and many mid-term meetings, the agreement was signed on May 29, 2015 in Burabay, Kazakhstan.

The Vietnamese Ministry of Foreign Affairs has recently issued a statement announcing that the two sides have completed procedures and the agreement will come into force from October 5, 2016.

Once the FTA takes effect, the two sides would set up a joint committee, a committee on goods trade, and a subcommittee on origin regulations for the effective implementation and supervision of the agreement.

The FTA reduces tariffs on 90% of all goods traded between Viet Nam and the EEU nations and is expected to boost trade between Viet Nam and the EEU to US$10 billion within the next five years.

The implementation of the FTA is expected to save EEU exporters US$40-60 million, and Vietnamese exporters US$5-10 million in its first year. The agreement will enter into force within 60 days of being ratified./.

By Kim Anh