EU approves free trade deal with Vietnam

The European Union has ratified its free trade agreement with Vietnam, which will gradually scrap the country’s 45% import tariff for spirits and protect categories such as Scotch whisky and Cognac.

The EU-Vietnam trade agreement will protect spirits such as Calvados and Cognac

Negotiations for the agreement concluded more than three years ago, but progress towards ratification has been slow.

The European Union’s (EU) Committee on International Trade backed the free trade and investment protection agreements between the EU and Vietnam on Tuesday (18 February). The deal will remove all tariffs between the two parties in 10 years.

Under the agreement, Vietnam would scrap its 45% import tariff for spirits over the course of seven years and recognise 169 EU products as geographical indications (GIs).

For spirits, the main GIs that will be protected are Armagnac, Calvados, Cognac, brandy de Jerez, Scotch whisky, Irish cream liqueur, Irish whiskey, Swedish vodka and Polish vodka.

In addition, 39 Vietnamese GI products will equally be protected by the agreement.

Director general of trade body Spirits Europe, Ulrich Adam, said the approval of the deal was an “important and highly welcome step”.

Vietnam’s parliament is set to vote on the trade deal in February. If it is ratified by parliament, the agreement will come into force by early summer 2020, Adam noted.

Spirits Europe said the deal comes one year after the EU-Singapore free trade agreement came into force.

Adam added: “With both deals signed, we have the clear expectation from the commission to strive for additional deals with other ASEAN [Association of Southeast Asian Nations] countries.

“Trade ministers will meet on 12 March, and we look forward to a green light to resume the negotiations with Thailand. An agreement with Indonesia would also be important to eliminate the 150% tariffs currently in place and solve a number of pending export issues.”