HANOI — Vietnam and the European Free Trade Association (EFTA) have signed a Free Trade Agreement (FTA) 14 years after officially launching their first formal negotiations.

The Vietnamese Ministry of Industry and Trade announced today (the 18th) that the FTA with EFTA was signed in the capital city of Hanoi.

The signing ceremony was witnessed by To Lam, General Secretary of the Communist Party and State President of Vietnam—ranking first in Vietnam's political hierarchy. Also in attendance were Le Manh Hung, Vietnam’s Minister of Industry and Trade, alongside representatives from EFTA member states, including Swiss President Guy Parmelin.

EFTA comprises four countries that are not members of the European Union (EU): Switzerland, Norway, Iceland, and Liechtenstein.

Once the agreement takes effect, EFTA member states will eliminate import tariffs on Vietnamese industrial products and seafood. Meanwhile, Vietnam will progressively reduce or eliminate tariffs on most products imported from EFTA member states over the next 11 years. Certain EFTA agricultural products, including cheese, coffee, and chocolate, will also be exported to the Vietnamese market tariff-free in the future.

The Vietnamese Ministry of Industry and Trade stated that it primarily exports seafood, footwear, textiles, machinery and equipment, and electronic products and components to EFTA member states, while importing industrial machinery and equipment, chemical products, pharmaceuticals, and raw materials for production.

In a separate statement issued today, the Norwegian government explained that upon the agreement's implementation, about half of Norway’s export items to Vietnam will be exempt from tariffs, with over 98% receiving the same benefit within the next seven years.

AFP reported that Vietnam and EFTA concluded the FTA as a measure to seek market diversification amid disruptions to global trade caused by U.S. tariff actions. Experts also evaluated that the agreement reflects both sides' determination to reduce their reliance on major trading partners.

The trade volume between Vietnam and EFTA member states averages around $2 billion USD annually (approximately 2.675 trillion Korean won). EFTA member states have a combined population of approximately 13 million and a total Gross Domestic Product (GDP) reaching $1 trillion (approx. 1.337 quadrillion won). EFTA is the world's 9th-largest merchandise trading group and the 5th-largest service trading group globally.

Vietnam and EFTA officially began FTA negotiations in 2012. After stalling in 2018, the negotiations resumed in September of last year and were successfully concluded in July of this year.

[ⓒ Global Economic Times. 무단전재-재배포 금지]