Russian Federation Council ratifies free trade agreement between Eurasian Economic Union and Vietnam

MOSCOW, April 27. /TASS/. Russia’s Federation Council ratified the agreement on setting up a free trade zone between the Eurasian Economic Union (EAEU) and Vietnam on Wednesday. The agreement was inked on May 29, 2015 in Kazakhstan. "This is the first document of its kind for EAEU, which involves an external partner," Chairman of the Russian Federation Council’s International Affairs Committee Konstantin Kosachev said. The document particularly stipulates the terms of tariffs liberalization in trade between the EAEU member-states and Vietnam via reducing or cutting to zero import customs duties on certain goods. According to First Deputy Minister of Economic Development Alexey Likhachev, import customs duties on all goods, excluding "sensitive goods", will be gradually lowered or cut to zero within the free trade zone. "The Eurasian Union reserves rates on such goods as meat, sugar, certain types of consumer goods, leather footwear, coats, suits, pipelines, cars. We keep the possibility of returning to the rate of most-favored regime regarding certain types of goods that will see the reduction of duties in case we evidence a substantial "threatening" growth of imports from Vietnam," Likhachev said. "This precedent of the first ever transnational virtual agreement for the Eurasian (Economic) Union paves the way for the five members’ growth in the global trade system," First Deputy Minister said. He added that the talks on creating free trade zones between EAEU and Israel will be launched in the nearest future as well as with Iran, Algeria and Egypt - in the foreseeable future. According to Kosachev, the agreement signed with Vietnam and the planned talks on free trade zones with other countries demonstrate that "the construction created by EAEU member-states is becoming more attractive for partners in third countries." Read more