Free trade agreement between Vietnam and EU, creating opportunities for export of seafood
On October 17, the European Commission has approved the submission of the Vietnam-EU Free Trade Agreement (EVFTA), which is preparing for the signing and completion of the process.
Vietnamese seafood exporters are facing great opportunities to export to the EU market when the Vietnam-EU free trade agreement comes into force. Accordingly, for seafood, the EVFTA Agreement will eliminate completely tariffs (except canned tuna and fish pellets) with a roadmap of up to seven years, canned tuna subject to tariff quotas. 11,500 tons. In addition, when the EVFTA agreement is signed, it will create opportunities for Vietnamese seafood enterprises to expand their export markets, especially new markets such as the Netherlands, Spain and Italy. , enhance the competitiveness of Vietnamese seafood compared to many competitors have not joined the FTA.
Currently, shrimp, pangasius and tuna are one of the key export items of Vietnam to the EU market. For tuna products, Thailand and China are the two biggest rivals in Vietnam, holding the most export markets, but neither country has signed an FTA with the EU. This means that Vietnam tuna products have absolute advantages over the two countries in the two major EU markets.
Similar to tuna products, Vietnam is currently the world’s second largest exporter of shrimp products with a market share of 14%, topped by India with a 15% market share. Following the entry into force of EVFTA, Vietnam will be allowed to cut import tariffs on shrimp raw materials and export duties on processed shrimp to the EU, while the FTA negotiations between India and the EU are also being suspended. This is seen as an opportunity for Vietnam’s shrimp export products to compete with India’s leading export market for market share.
Prices of aquatic products are competitive at present, while the export tax rate for some markets is very high. Specifically, shrimp export of Vietnam to the EU region has an average tax of 6-20%, tuna products also have tariffs of 11-20%. So when EVFTA comes into effect, the reduction of tariff lines will help Vietnamese seafood products lower prices significantly, improve competitiveness and export turnover. On the other hand, besides the advantages in terms of tariffs, Vietnam’s seafood sector also has more opportunities to attract foreign investment, improve production technology and product quality.
In the first nine months of 2018, Vietnam’s seafood export turnover to the EU market reached $ 1.111 billion, up 6.2% over the same period of 2017. Of which, the EU market was the top shrimp importer of Vietnam South, the export turnover of shrimp products to the EU market in the first nine months of 2018 reached over $ 648 million, up 11.1% over the same period in 2017, accounting for 24.7% of shrimp exports. Vietnam. Export of pangasius to the EU market reached over 176 million, up 14.6% over the same period last year.
(According to General Directorate of Fisheries)
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