Vietnam and EFTA sign free trade agreement

HANOI (ANTARA) — Vietnam and the European Free Trade Association (EFTA), whose members are Norway, Switzerland, Iceland and Liechtenstein, signed a free trade agreement in Hanoi on Sunday (18 October), the Vietnam News Agency reported.

Under the agreement, EFTA countries will continue to apply zero import tariffs to Vietnamese industrial and seafood products once the pact takes effect. Vietnam will gradually reduce or eliminate tariffs on most similar products from EFTA countries over 11 years, the agency reported on Saturday (17 October).

Certain agricultural products, including cheese, coffee and chocolate, will also receive duty-free access to Vietnam, subject to a transition period of up to 16 years.

The agreement also seeks to simplify and modernise customs procedures. It provides for national treatment of investors in certain non-services sectors, including agriculture, mining and manufacturing, subject to some exceptions, and promotes transparency while reducing technical barriers to trade.

Bilateral trade between Vietnam and EFTA member countries averages nearly US$2 billion a year. The Southeast Asian country mainly exports seafood, footwear, textiles, machinery and electronics, while its main imports include industrial equipment, chemicals, pharmaceuticals and production materials, according to the Vietnam News Agency.