Vietnam, UK conclude free trade agreement negotiations
VOV.VN - Minister of Industry and Trade of Vietnam Tran Tuan Anh and International Trade Secretary of the UK Liz Truss signed a document in Hanoi on Dec. 11, putting an end to negotiations of a free trade agreement between the two countries.
The deal, due to take effect on Jan. 1, 2021, locks in the benefits of the UK’s existing trading relationship with Vietnam through the EU-Vietnam FTA. Up to 99% of tariffs between the two countries will be eliminated by the time of full implementation. This will be a further boost to UK-Vietnam bilateral trade, which has tripled between 2010 and 2019 to £5.7 billion.
“The UK and Vietnam share a strategic commitment to global trade and the free flow of capital and investments. I’m delighted to finalise with Minister Tran Tuan Anh this bilateral Free Trade Agreement, which will provide vital continuity for our fast-growing and dynamic trading relationship,” Truss said at the signing ceremony.
According to the Secretary, the deal is an important step towards the UK’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) which the UK aims to formally apply for in early 2021.
“Accession will strengthen our relationship with Vietnam and enable us to form closer ties with 11 dynamic economies in the Indo-Pacific region, bringing more opportunities for the UK, its economy and people.”
The same day, both Vietnam and the UK issued a joint statement on the FTA, underlining businesses’ continued benefits from reduced tariffs on imports and exports, from increased access to services and from the protection of key British and Vietnamese products.
By the time of full implementation, Vietnam stands to benefit from tariff savings of £114 million on Vietnamese exports. For UK exports, this figure will be £36 million.
