As we previously reported, the European Union and Vietnam recently completed their free trade agreement negotiations. This week the full text of the EU-Vietnam FTA was made available online. Further details are also available in this European Commission news release.
Duty reductions on European pork and beef products entering Vietnam are similar to those found in the Trans-Pacific Partnership (TPP). The TPP includes shorter phase-out periods for some products, though it is also likely that the EU-Vietnam FTA will enter into force before TPP.
Duty reductions (from the current base rate) for EU pork entering Vietnam include:
Chilled – 25 percent base rate is phased to zero over 10 years (same as TPP)
Frozen – 15 percent phased to zero over 8 years (same as TPP)
Offal – 8 percent phased to zero over 10 years (TPP is five years)
Fat – 10 percent phased to zero over 8 years (same as TPP)
Bacon and cured/salted brined pork – 10 percent phased to zero over 10 years (TPP is 8 years)
Prepared/preserved/cooked pork – for most products, 22 percent phased to zero over 10 years (same as TPP)
Duty reductions for beef include:
Chilled and frozen – 14 percent (bone-in is 20 percent) phased to zero over 4 years (TPP is 3 years)
Offal – 8 percent phased to zero over 11 years (TPP is 5 years)
Cooked – 35 percent phased to zero over 11 years (TPP is 8 years)
Other duty reductions:
Sausages – 22 percent phased to zero over 11 years (same as TPP)
Guts/bladders/stomachs of beef and pork – 3 percent goes to zero immediately (same as TPP)
While Vietnam typically maintains a high rate of self-sufficiency in pork production, EU pork/pork variety meat exports to Vietnam have expanded dramatically in the two years since the Russian market closed to EU pork. In 2014, exports increased more than 400 percent year-over-year in both volume and value, reaching 16,315 metric tons (mt) valued at $21.7 million. Through October 2015, exports had already reached 27,884 mt (+119 percent year-over-year) valued at $30.8 million (+79 percent). Pork variety meat accounts for about two-thirds of the export volume.
EU beef exports to Vietnam also increased significantly the past two years. In 2014, exports jumped 68 percent in volume (5,240 mt) and nearly doubled in value to $18.4 million. Through October 2015, exports were up 66 percent in volume (6,487 mt) and 37 percent higher in value ($19. 1 million), with variety meat accounting for about two-thirds of the volume.
Date source: Global Trade Atlas