HCMC – The European Union (EU) will eliminate tariffs on fresh and frozen Vietnamese tuna products once the EU-Vietnam free trade agreement comes into effect, with a tariff quota of 11,500 tons annually for canned tuna.
The EU will also eradicate tariffs on frozen tenderloins and fillets coded HS030487 under the terms of the three-year roadmap from the basic tax rate of 18%, immediately after the agreement comes into force on August 1.
As for steamed tenderloins and fillets, the EU will eliminate tariffs on them in accordance with a seven-year roadmap from the basic tax rate of 24%, according to vov.vn.
According to the Vietnam Association of Seafood Exporters and Producers (VASEP), local enterprises are looking forward to the news, as it is difficult for Vietnam to compete with the Philippines and Ecuador because they get preferential tariffs unlike Vietnam.
The EU-Vietnam free trade agreement is expected to bring about new opportunities for the Vietnamese tuna industry to expand and have easier access to new markets. The trade deal will help domestic tuna products enjoy tax incentives comparable to those from Thailand and China.
These nations are Vietnam’s key competitors and hold a large share within the EU market but they have yet to sign a deal with the EU, VASEP said.
Statistics released by the General Department of Vietnam Customs indicated that in the first four months of the year, Vietnam’s tuna exports to the EU fell by 7.2% compared with the same period last year, while canned tuna exports to the bloc saw an annual increase of 2.7%.