The European Commission on 1 February 2016 published the text of a free trade agreement between the EU and Vietnam. The free trade agreement is expected to enter into force by the end of 2017 or in early 2018.
The free trade agreement will reduce trade barriers for goods and services, provide controls for the protection of intellectual property, and facilitate a mutual economic relationship for the participating countries. The greater part (99%) of goods covered under the free trade agreement will benefit from a full reduction in customs duties.
Following the conclusion of the negotiating process in December 2015, the text of the free trade agreement will now be subject to legal review and will—after translation into all EU languages—be presented to the Council and the European Parliament for ratification.
Until the free trade agreement enters into force, imports from Vietnam will most likely continue to benefit from preferential status under the EU generalized system of preferences (GSP).
Read a February 2016 report prepared by the KPMG member firm in the Netherlands: Free Trade Agreement between the EU and Vietnam
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