The Brexit transition period will end on December 31, 2020, and the Vietnam-EU Free Trade Agreement (EVFTA) that came into effect on August 1 this year will no longer apply to the UK. In order to maintain bilateral economic and trade relations, Vietnam completed negotiations on a bilateral free trade agreement (FTA) with the United Kingdom on the 11th.
The UK officially left the EU in January this year, but it is still in a transition period since then. The UK continues to participate in the EU single market and customs union. However, the Brexit transition period will end on December 31, when the UK will no longer enjoy the tariff preferences in the EVFTA.
Based on reports from the Vietnam Labor News and the Vietnam Government Network Electronic News, Vietnam and the United Kingdom completed negotiations on the Vietnam-UK Free Trade Agreement (UKVFTA) today, and a negotiation completion ceremony was held in Hanoi, the capital of Vietnam, in the afternoon.
Vietnam’s Minister of Industry and Commerce Tran Tuan Anh said that the UK is Vietnam’s third largest trading partner in Europe. According to data from the General Administration of Customs of Vietnam, total trade between Vietnam and the UK reached US$6.6 billion in 2019, of which Vietnam’s exports to the UK reached US$5.8 billion and imports reached US$857 million.
The Ministry of Industry and Commerce of Vietnam pointed out that the UK is about to bid farewell to the EU. The EVFTA that took effect on August 1 will no longer apply to the UK after December 31. Bilateral trade demand between Vietnam and the UK is strong, and both sides hope that the UKVFTA will be completed as soon as possible. Promote economic recovery after the new coronavirus epidemic.
Reports indicate that after 6 formal working meetings and multiple technical meetings, Vietnam and the UK have officially completed the UKVFTA negotiation outline today, taking an important step towards the formal signing of an agreement between the two countries in the future.
It is reported that the biggest opportunity and benefit that UKVFTA brings to Vietnam is to promote the export of Vietnam’s key products. The export industries that benefit Vietnam the most are aquatic products, rice, textiles, wood, vegetables, footwear, etc. According to the tax reduction schedule, 99% of import and export tariffs between the two countries will eventually be eliminated.
UK International Trade Secretary Truss said that the UK and Vietnam have a common strategic commitment to global trade and capital transactions and investment liberalization. In the context that the UK will formally apply to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in early 2021, reaching the UKVFTA is an important step.
Truss said: Joining the CPTPP will increasingly strengthen the relationship between the UK and Vietnam, and at the same time create conditions for us to strengthen our relationship with 11 dynamic economies in the Indo-Pacific region, bringing benefits to the UK, economic development and people. Come more opportunities.
Reports say that in addition to promoting Vietnam’s exports, improving the investment environment and expanding commodity supply opportunities, UKVFTA also puts pressure on Vietnam’s domestic market, such as textiles, which will face challenges. In addition, the UK’s technical trade barriers are quite strict, causing Vietnamese companies to worry about complying with wages, labor safety and health, and environmental protection regulations.
