Vietnam Eaeu Fta Agreement

The agreement with Singapore was the third document of its kind signed by the Eurasian Union with third countries. Distributors must ensure that they do not exceed the trigger levels set out in the agreement; Otherwise, they could face the most preferred national tax rates, not the entry tax rates, as provided by the free trade agreement. In order to reduce trade violations, the Vietnamese government must ensure that traders are well informed and aware of these measures. In addition, some governments need to encourage free trade agreement and investment to increase the participation of private companies. Dezan Shira Associates provides business intelligence, due diligence, legal, tax and advisory services throughout Vietnam and Asia. We have branches in Hanoi and Ho Chi Minh City as well as throughout China, Southeast Asia, India and Russia. For investment assistance in Vietnam, please contact us at the or visit us at The issue of establishing a free trade agreement with China has been under discussion for many years, since 2006, when Beijing first proposed it to the CSS. The EAEU has taken a cautious stance, as „the main risk is that China`s economic power will make China the main beneficiary of the tariff reduction; That is why we want to see first how a non-preferential agreement will work. Negotiations are underway for free trade agreements with several states. Serbia will be the next country to sign a free trade agreement with the EAEU (the free trade agreement was signed on October 25, 2019 – Ed.). Serbia`s Deputy Prime Minister and Trade, Tourism and Telecommunications Minister Rasim Ljajia said the EAEU-Serbia free trade agreement would be signed in Moscow at the end of October 2019. In May 2019, the Higher Council gave the EAEU a mandate to sign the agreement. The agreement takes due account of the experience gained in working on documents already signed and also covers potential business risks. During the negotiations, special attention was paid to products sensitive to the EAEU market.

EAEU Trade Minister Veronika Nikishina stressed that products such as „beef, cheese, spirits, baby food, dairy products, cars, planes – all this will be excluded from the agreement, we will not lower tariffs on these products.“ Discussions with Israel are progressing more slowly. The first round of negotiations took place at the end of 2018. It focused on trade defence measures, rules on the origin of goods, customs cooperation, dispute resolution, technical barriers to trade, health and plant health standards, public procurement and trade issues. The main problem is to reconcile the positions of the parties. Political differences with Tehran, which has already reached an agreement with the Eurasian Union, have not significantly influenced the course of the talks. Vietnam was the first nation to conclude a free trade agreement with the EAEU. Under the tariff plan, Vietnam`s average tariffs on EAEU products will fall from 10% to 1%, while the EAEU average will rise from 9.7% to 2% by 2025. The agreement on trade and economic cooperation between the Eurasian Economic Union and the People`s Republic of China was signed on 17 May 2018 and will enter into force at the end of October 2019. It is not a free trade agreement, but it does define a uniform format of trade cooperation between the EAEU and China.