(VOVworld) - The free trade agreement (FTA) between the Eurasian Economic Union (EAEU) and Vietnam will take effect on October 5. Minister for Trade at the Eurasian Economic Commission Board Veronika Nikishina said this at the 2^nd Eastern Economic Forum held in Russia’s Vladivostok. Both sides finished the ratification of the deal and it will come into force after 60 days.

Minister for Trade at the Eurasian Economic Commission Board Veronika Nikishina (Photo: therussophile.org)

 

The EAEU-Vietnam FTA features the two sides’ obligations pertaining to such spheres as trade, services, investment and movement of natural persons.

With the formation of the EAEU-Vietnam free trade area, EAEU exporters can save about 40 million USD in tax in the first year the pact takes effect. Under the agreement, Vietnam will immediately remove import tariffs on 59 percent of the goods from the EAEU, including meat products, wheat flour, alcohol, mechanical equipment and steel products. The tariffs on another 30 percent of goods will be gradually reduced to 0 percent in the transitional period.