Russian President Vladimir Putin discussed with his Vietnamese counterpart Nguyen Phu Trong the prospects for expanding economic and political cooperation, the Kremlin press service said yesterday. This is one of the results of the eurasian Union`s painstaking work in signing free trade agreements with the countries concerned. Such agreements strengthen EAEU`s positions in the regional and global economy and promote market expansion for economies. However, the signing of such documents is not the objective of the EAEU as such. The fact is that they offer mutual benefits. The eurasian Commission`s gradual experience allows it to clarify the interests of its Member States and to neutralise risks to domestic producers when signing preferential trade agreements. This practice continues. HANOI, October 5. /TASS/.
The agreement establishing a free trade area between the Eurasian Economic Union and the Socialist Republic of Vietnam will enter into force on Wednesday, after being ratified by the national parliaments of all countries participating in the pact. The agreement goes beyond the scope of a purely commercial agreement. In addition, promising areas will be defined for the development of cooperation, such as agriculture, energy, transport, industrial cooperation, information and communication infrastructure, technology and innovation, finance and the environment. Vietnam`s trade with Russia and Kazakhstan is particularly intense. According to the WTO, the share of Russian exports to Vietnam has increased dynamically over the past three years: 19.9% in 2016, 34.0% in 2017 and 12.9% in 2018. This growth was due to a sharp increase in exports of cereals, mineral resources, iron and steel, fish and seafood, as well as organic chemicals. Kazakhstan has significantly increased its exports to Vietnam by 39.0% and 3.6% between 2017 and 2018. This is partly due to Kazakhstan`s ongoing export of iron and steel, cereals and lead and lead to Vietnam. Official text of the free trade agreement between the Eurasian Economic Union and Vietnam The implementation of the free trade system between Vietnam and EAEU will allow the parties not only to exchange fruitfully with traditional product groups, but also to open up a wide field of investment cooperation. In addition, the free trade agreement defines the protection of intellectual property rights, defines areas of cooperation in the field of e-commerce and public procurement, establishes common principles for the protection of competition and harmonizes customs formalities. Customs liberalisation of trade between EAEU Member States and Vietnam implies a reduction or reduction of import duties to 0 (about 90%), either immediately after the free trade agreement comes into force (59%) or through transitional periods (30%), on the majority of products (about 10,000 items in total) on a partial basis. The issue of establishing a free trade agreement with China has been debated for many years, since 2006, when Beijing first proposed it to the countries of the SOCIAL ORGANISATION.
The EAEU has taken a cautious stance, as “the main risk is that China`s economic power will make China the main beneficiary of the tariff reduction; That is why we want to see first how a non-preferential agreement will work. Marginal trade and trade and investment between Russia and Vietnam have increased significantly since the ENTRY into force of the EAEU Free Trade Agreement, with other ASEAN members Cambodia, Indonesia and Thailand participating in free trade negotiations with the Eurasian Economic Union, while Singapore approved an agreement earlier this year.