Vietnam-European Free Trade Association signs FTA... 14 years since formal negotiations began

(Jakarta = Yonhap News) Correspondent Hyeon-gyu Son = Vietnam and the European Free Trade Association (EFTA) signed a free trade agreement (FTA) 14 years after they first began formal negotiations.

Vietnam's Ministry of Industry and Trade announced on the 18th (local time) that it signed an FTA with EFTA in the capital Hanoi.

The signing ceremony was attended by Vietnam's highest-ranking power leader, Communist Party Secretary General and President Lam, and representatives of EFTA member countries, including Vietnam's Minister of Industry and Trade Le Mying Hung and Swiss President Guy Parmelin.

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

When this agreement takes effect, EFTA member countries will abolish import tariffs imposed on Vietnamese industrial products and marine products, and Vietnam will gradually reduce or eliminate tariffs on most products imported from EFTA member countries within the next 11 years.

Some agricultural products from EFTA, including cheese, coffee, and chocolate, can also be exported to the Vietnamese market without tariffs in the future.

Vietnam's Ministry of Trade announced that it mainly exports marine products, shoes, textiles, machinery and equipment, and electronic products and parts to EFTA member countries, and imports industrial machinery and equipment, chemicals, medicines and raw materials for production.

The Norwegian government also explained in a separate statement that day that once this agreement takes effect, about half of its exports to Vietnam will be exempt from tariffs, and more than 98% will receive the same benefits within the next seven years.

AFP news agency pointed out that Vietnam and EFTA signed an FTA as a measure to seek market diversification in a situation where global trade is disrupted by US tariffs.

Experts also assessed that this reflected the will of both sides to reduce dependence on major trading partners.

The annual average trade volume between Vietnam and EFTA member countries is approximately $2 billion (approximately KRW 2.675 trillion).

The population of EFTA member countries is approximately 13 million, and the total gross domestic product (GDP) amounts to 1 trillion dollars (approximately 1,337 trillion won). It is the world's 9th largest goods trading group and the world's 5th largest services trading group.

Vietnam and EFTA officially began FTA negotiations in 2012. Negotiations, which had been deadlocked since 2018, resumed in September of last year and were concluded in July of this year.