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Vietnam and Uk Free Trade Agreement

When the UK-Vietnam Free Trade Agreement (UKVFTA) came into force on May 1, Vietnam issued several regulations to implement the free trade agreement. Investors need to be aware of the implementing regulations in order to reap the benefits of merchandise trade between the two countries and reduce costs. In addition, Vietnam pledged to support the UK`s accession to the Comprehensive and Trans-Pacific Partnership (CPTPP). The CPTPP consists of 11 countries and would require the consent of all member states for the UK to join the trade pact. Nevertheless, this is a significant gain for the Uk; its allies such as Australia, Canada and New Zealand are also signatories, increasing its chances of joining the free trade agreement. The free trade agreement was signed by the ambassadors of the two countries in London and paved the way for continued and increased trade between the two countries. The UKVFTA entered into force on 1 May 2021. While the UKVFTA is expected to enter into force on 1 January 2021, it is unclear when the free trade agreement will be signed. Vietnam also said it will apply the EVFTA agreement to the UK until a bilateral pact is ready. Nevertheless, the trade deal is expected to be similar to the EVFTA. Published title: Free Trade Agreement between the United Kingdom of Great Britain and Northern Ireland and the Socialist Republic of Vietnam.

After Brexit, the UK negotiated a free trade agreement with the Vietnamese government in order to benefit from similar or better trade conditions than under the EVFTA. In this update, you can read about some notable points. The UKVFTA will enter into force on 1 May 2021. Since leaving the EU in January, Britain has gone on its own and negotiated new trade deals with countries to replace those negotiated by the bloc. The UK and Vietnam developed their relationship into a strategic partnership in 2010, with trade on an upward trend ever since. The UKVFTA aims to replicate the benefits of the EU-Vietnam Free Trade Agreement as the UK leaves the EU. This agreement will help countries maintain preferential trade conditions and economic benefits through market opening commitments already included in the EVFTA. With the exchange of official notes confirming the completion of the internal procedures of both parties, the UKVFTA will officially enter into force from 1 May 2021. The bilateral free trade agreement will strengthen Vietnam-UK relations in the areas of trade liberalization, legal regulation and alignment with global standards. Britain and Vietnam signed a free trade agreement on Tuesday, Vietnam`s Ministry of Commerce said, days before Britain completes its transition from the European Union. The free trade agreement guarantees access to progressive tariff reductions between the UK and Vietnam.

The deal guarantees the 65% of all tariffs that have already been abolished on trade between the UK and Vietnam. This amount will be increased to 99% of customs duties after six years. This includes the removal of tariffs for UK exporters of machinery, mechanical equipment and pharmaceuticals. The free trade agreement`s preferential tariffs offer Vietnam the same opportunity to increase exports of key products such as phones and components, clothing, footwear and fish to the UK. Vietnam will continue to benefit from duty-free tariff quotas for its 14 products, including rice, with improved market access. Customs duties applicable to bilateral trade in goods between the UK and Vietnam will continue to apply as adopted in the EVFTA. However, in some cases, non-preferential applied tariff rates may actually be lower due to changes to the UK`s most-favoured-nation tariff regime after withdrawal from the European Union (EU). After an economic partnership agreement with Japan and a trade agreement with Singapore, Vietnam was the UK`s third largest trade agreement in Asia. For the UK, the deal offers significant potential for export expansion to Vietnam, one of the world`s fastest-growing emerging economies. The UKVFTA aims to replicate the benefits of the EU-Vietnam Free Trade Agreement (EVFTA)1 as the UK has left the EU.

Under the UKVFTA, trade between the 2 countries will continue to enjoy preferential treatment, including the elimination of virtually all tariffs once the agreement is fully implemented. From 1 January 2021 to mid-May 2021, ukVFTA preferences will be applied retroactively to goods imported into Vietnam from the UK. Cooperative trade has existed since the 2 countries entered into a strategic partnership in 2010. In recent years, the UK has been Vietnam`s 3rd largest trading partner in Europe after Germany and the Netherlands. Vietnam mainly exports clothing and textiles, footwear, wood and wooden furniture and seafood to the UK, while importing pharmaceuticals, machinery and equipment from the UK. The free trade agreement is important because the UK left the EU after 31 December 2020. The UK has been busy negotiating renewal trade agreements to replace EU-negotiated trade agreements so that it can continue to benefit from preferential trade agreements from 1 January 2021. The UKVFTA aims to strengthen the existing relations between the 2 nations. In fact, 65% of all tariffs on trade between the UK and Vietnam have already been abolished. In the first 6 years after the entry into force of the UKVFTA, the UK will abolish tariffs on 99.2% of tariff headings related to Vietnamese imports.

This is higher than what is lower than the EVFTA (70.3%). Vietnam pledges to abolish 48.5% of tariffs, which is equivalent to other EU countries under the EVFTA. It also serves as a springboard for the UK`s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a priority for the UK. Vietnam supports and welcomes the UK`s application for membership in the CPTPP. This will bring us closer to the CPTPP`s vision of advancing economic integration and supporting trade and investment liberalization around the world. The Free Trade Agreement between the United Kingdom and the Socialist Republic of Vietnam. “The agreement will provide a framework for comprehensive, long-term and sustainable economic cooperation between the two countries,” the ministry said. Negotiations on the UK-Vietnam Free Trade Agreement (UKVFTA) were concluded on 11 December 2020 between the Vietnamese Minister of Industry and Trade and the UK Secretary of State for International Trade.

The UKVFTA was signed on 29 December and the agreement was applied temporarily from 1 January 2021. For Vietnam, the UK`s accession to the CPTPP as well as its bilateral free trade agreement with the country would be a win-win situation, as the conclusion of the two trade pacts would help the export-oriented country catch up with its growth targets, which face an obstacle due to the COVID-19 pandemic. .

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