Vietnam - Chile Free Trade Agreement (VCFTA)
Vietnam - Chile Free Trade Agreement (VCFTA)
The Vietnam Chile Free Trade Agreement was signed on November 11, 2011 in Hawaii (The United State of American). It is officially effective since January 1, 2014.
(i) Commitment on the tariff reduction of Vietnam
Vietnam has committed to abandon 87.8% of the tariff rates (representing 91.22% of the total import turnover from Chile in 2007). Within 15 years and tentatively at the end of the roadmap in 2029, the number of the tariff lines which having no or partial reduction commitment will only account for 12.2%, focusing on a number of sensitive areas such as: agriculture, petrol…
Up to 2023, Vietnam has committed to eliminating another 1163 headings compared to the starting time, bringing the total tariff lines with the rate of 0% to 3860, equivalent to 42.42% of the whole chart. The speed of the tariff elimination commitment in VCFTA will be intensified in the last five year of the Agreement to reach 87.8%, which is the maximum level in 2028. The products which Vietnam has committed to abolish the tariffs, including: chemicals, wood, textile materials, machinery, chicken meat, orange, mandarin, wine, maritime products, beer, construction steel…
In order to implement the important commitments on tariff reduction in VCFTA, the Ministry of Finance issued the Circular No. 162/2013TT-BTC dated on November 15 2013 on Vietnam's special preferential import tariff for the 2014- 2016 period. Vietnam has committed to deleted immediately 2697 headings, equivalent to 29.64% of the total tariff chart.
(ii) Chile's commitment to reducing the tariff
Chile is more open to Vietnam's goods. Accordingly, 83.54% of the total tariff lines were eliminated right after the effectiveness of the Agreement, accounting for 81.8 of the total export turnover from Vietnam to Chile in 2007. A number of key export commodities from Vietnam will be applied with the immediate and rapid elimination from the current rate of 6%, including: textile, maritime products, coffee, tea, computers and components.
Up to 2029, Chile will eliminate the tariffs for most of the goods from Vietnam, accounting for 99.62% of the chart and equivalent to 100% of the total export turnover from Vietnam to Chile in 2007.