The European Union and Vietnam have reached an agreement in principle for a free trade agreement, after two and a half years of intense negotiations.
The European Commission on Tuesday said the agreement will remove nearly all tariffs on goods traded between the two economies.
EU Trade Commissioner Cecilia Malmstrom said the deal sets “a new, better and modern model for Free Trade Agreements between the EU and developing countries.”
SOUNDBITE(ENGLISH)CECILIA MALMSTROM, European Commissioner for Trade
“Once the agreement is up and running it will provide significant opportunities for business, investment and for jobs here in Europe and in Vietnam.”
The agreement is the first of its kind that the EU has concluded with a developing country.
According to the deal, Vietnam will remove almost all of its export duties besides eliminating tariffs. The agreement will also create new market access opportunities in services and investment.