▲ Vietnam-EFTA FTA Signing Ceremony
Vietnam and the European Free Trade Association (EFTA) have signed a free trade agreement (FTA) 14 years after launching their first official negotiations.
The Vietnamese Ministry of Industry and Trade announced that it signed the FTA with EFTA in the capital city of Hanoi today (October 18).
The signing ceremony was witnessed by To Lam, General Secretary of the Communist Party of Vietnam and State President. Vietnamese Minister of Industry and Trade Le Manh Hung and Swiss President Guy Parmelin, along with representatives from other EFTA member states, also attended.
EFTA member states consist of four countries that are not members of the European Union (EU): Switzerland, Norway, Iceland, and Liechtenstein.
Once the agreement takes effect, EFTA member countries will eliminate import tariffs on Vietnamese industrial products and seafood, while Vietnam will gradually reduce or eliminate tariffs on most products imported from EFTA member states over the next 11 years.
Certain EFTA agricultural products, including cheese, coffee, and chocolate, will also be able to be exported to the Vietnamese market tariff-free in the future.
The Vietnamese Ministry of Industry and Trade stated that it mainly exports seafood, footwear, textiles, machinery and equipment, and electronic products and components to EFTA member states, while importing industrial machinery and equipment, chemical products, pharmaceuticals, and raw materials for production.
In a separate statement released on the same day, the Norwegian government explained that once the agreement takes effect, about half of its exports to Vietnam will be exempt from tariffs, and more than 98% will receive the same benefits within the next 7 years.
AFP reported that Vietnam and EFTA concluded the FTA as a measure to seek market diversification amid disruptions to global trade caused by U.S. tariff measures.
Experts also evaluated that the agreement reflects both sides' determination to lower their reliance on major trading partners.
The trade volume between Vietnam and EFTA member states stands at an annual average of 2 billion dollars (approximately 2.675 trillion won).
The population of EFTA member countries is around 13 million, and their combined gross domestic product (GDP) reaches 1 trillion dollars (approx. 1,337 trillion won).
It is the 9th largest merchandise trading group and the 5th largest services trading group in the world.
Vietnam and EFTA officially launched FTA negotiations in 2012.
The negotiations, which had stalled since 2018, resumed in September of last year and were concluded in July of this year.
(Photo: AP, Yonhap News)
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