Friday, 19/06/2020 15:48 (GMT+7)
The European Union (EU) will eliminate tariffs on fresh and frozen Vietnamese tuna products as soon as the EU - Vietnam Free Trade Agreement (EVFTA) comes into effect, with a quota of 11,500 tonnes annually for canned tuna.
Photo for illustration (Source: baodautu.vn)
Specifically, the EU will remove tariffs on frozen tenderloins and fillets coded HS030487 from the basic tax rate of 18% to 0% after the agreement comes into force, scheduled for August 1st under the terms of the three-year roadmap.
Meanwhile, the EU will cut duty from the basic rate of 24% to 0% on steamed tuna tenderloins and fillets under the terms of the 7-year roadmap.
According to the General Department of Vietnam Customs, in the first four months of the year, Vietnam’s tuna exports to the EU fell by 7.2% compared to the same period last year, while canned tuna exports to the bloc saw an annual increase of 2.7%.
The signing of the EVFTA is expected to provide lots of opportunities for Vietnam’s tuna industry to expand and gain greater access to wider markets. Under the agreement, Vietnamese tuna will have tax advantages compared to other countries such as Thailand and China, Vietnam’s major competitors in terms of the export of tuna to the EU.
While these neighboring countries are major competitors to the nation and hold a large market share within the EU market, they have yet to sign an FTA with the EU.
According to the Vietnam Association of Seafood Exporters and Processors (VASEP), the novel coronavirus in major export markets remains complicated, causing the global tuna market to continue to fluctuate strongly, with demand for canned tuna in foreign markets projected to keep increasing.
The VASEP has therefore advised local businesses to strictly monitor the global market in order to make appropriate adjustments due to people’s income being affected, leading to the new trend of seeking cheaper alternatives, such as canned tuna products./.
BTA