The deal locks in the 65% of all tariffs that have been eliminated since the EU-Vietnam FTA entered into force. This will increase to 99% of tariffs after a schedule of between 6-9 years. This secures import tariff elimination for products such as clothing, fabric and footwear – meaning customers and businesses may benefit from lower prices on these products. Tariffs will be reduced per a schedule that stipulates equal annual reductions from entry into force of the agreement.

With such commitments, the UK exporters to Vietnam and the UK importers from Vietnam stand to benefit. Specifically:

• For goods exported by UK exporters to Vietnam:
  • 48.5% of tariffs lines were eliminated on 01 January 2021;
  • 91.8% of tariff lines will be eliminated by 01 January 2027;
  • 98.3% of tariff lines will be eliminated 01 January 2029;
  • 1.7% of tariff lines are partially liberalised through tariff rate quotas (the quota volumes are consistent with Vietnam’s WTO commitments and duties within quotas will be removed by 2031) or not entitled to preferential treatment
• For goods imported by the UK importers from Vietnam:
  • 85.6% of tariff lines were eliminated on 01 January 2021;
  • 99.2% of tariff lines will be eliminated by 01 January 2027;
  • 0.8% of tariff lines are partially liberalised through tariff rate quotas (with preferential tariffs for inquota products of 0%)