The European Council on Monday ratified a free trade agreement with Vietnam that promises to reduce tariffs on Vietnamese shrimp from the current 12% to 20% rates to zero after seven years, Vietnam News reports.
Once ratified by the Vietnamese National Assembly in May, the EU Vietnam Free Trade Agreement (EVFTA) is expected to take effect at the beginning of the summer. As part of the deal, Vietnam will cut 65% off import taxes on EU commodities right away and the rest over a 10-year period. Also, the EU will cut more than 70% off Vietnam's commodities right after the deal takes effect with the rest removed over the next seven years.
The trade deal along with the EU-Vietnam Investment Protection Agreement was reportedly signed in Hanoi, Vietnam, in June 2019.
The value of Vietnam’s shrimp exports reached $3.36 billion in 2019, down 5.4% year on year. The trade deal is expected to bring advantages to Vietnam’s shrimp industry in the coming time.