​The FTA between Vietnam and the Eurasian Economic Union (EAEU) was inked in May 2015. (Photo: VNA)

Moscow (VNA) – The Russian Council of the Federation on April 27 ratified the free trade agreement (FTA) between Vietnam and the Eurasian Economic Union (EAEU).

The State Duma of Russia had earlier ratified the FTA, the first of the union which comprises Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan.

It now only requires the signature of Russian President Vladimir Putin to officially take effect.

According to the agreement inked in May last year, Vietnam and the EAEU shall reduce and/or eliminate customs duties on goods originating in the other party, Chairman of the Federation Council Committee on International Affairs Konstantin Kosachev said before the council.

It will pave the way for the EAEU to connect with the Pacific Asia region, he added.

Viktor Khristenko, Chairman of the board of the Eurasian Economic Commission, said tariffs will be abolished on about 88 percent of goods traded between Vietnam and the union’s members.

Vietnam-EAEU trade is estimated at around 4 billion USD, with the agreement hoped to boost this to 10 billion USD by 2020.

Vietnam has committed to cut customs duties on dairy products from the EAEU from current rate of 20 percent.

The country will eliminate tariffs on the partner’s poultry meats, alcohol and automobiles in the next five years. The same favour will be also applied to the EAEU exports of coaches after 10 years and petroleum after 15 years, compared to the current levels of 40 percent and 19 percent, respectively.

Exports of wheat, meats and dairy products from the EAEU to Vietnam are forecast to double while made-in-Vietnam rice, fruits, vegetables, cashew, fish and home appliances will get better access to the partner’s markets.-VNA