Cat Lai Port in Ho Chi Minh City (Photo: VNA) Hanoi (VNA) – A new trade agreement between Vietnamand Cuba officially came into force earlier this month, and is expected to helpbring bilateral economic, trade and investment ties on par with their soundpolitical relationship.
The European-American Market Department underthe Ministry of Industry and Trade said on April 16 that the two countries hadcompleted procedures for the trade deal to take effect on April 1.
The Vietnam-Cuba Trade Agreement, signed inHanoi on November 9, 2018, features 14 chapters which include regulations ontrade in goods, rules of origin, customs management and trade facilitation,technical standards, food safety, and animal and plant quarantine.
Under the pact, the two sides have pledged toeliminate or reduce tariffs on nearly all commodities currently traded betweenthem over the next five years.
The Vietnamese Government recentlyissued Decree No.39/2020/ND-CP on a list of Vietnam’s specialpreferential import tariffs to implement the trade agreement from nowuntil 2023.
Accordingly, import tariffs on 514 items fromCuba, including some types of shrimp, fish, honey and fruit, cement, chromiumore, disinfectants, protective suits and wireless internet devices have beenslashed to zero percent.
For the 49 remaining tariff lines, tax rateswill be cut gradually. Commodities such as sugar and unprocessed tobacco willhave their tariff rates reduced to 15 percent in four years, cigarettes andcigars to 70 percent, and liquor and alcohol to 20 percent.
This decree will become effective on May 20./.
VNA
