Vietnam to be removed from GSP of EAEU
Vietnam to be removed from GSP of EAEU
Vietnam will be removed from the list of generalised scheme preferences (GSP) of the Eurasian Economic Union (EAEU) from October 2021.
In 2020, bilateral trade between Vietnam and the EAEU reached $5.2 billion, up 6.5 per cent compared to 2019
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According to Decision 17 of the Trade Policy Department of the Eurasian Economic Commission (EEC) dated March 5, Vietnam will no longer enjoy the GSP of the EAEU from October 12. This change is expected to strongly impact businesses whose goods exports are enjoying GSP to the EAEU.
Enterprises are recommended to pay attention to this deadline to adjust their export activities accordingly. Plus, they are recommended to take advantage of tariff preferences from the Vietnam-EAEU Free Trade Agreement, replacing the GSP regimes that will be terminated shortly.
The EAEU (consisting of five countries: Russia, Belarus, Kazakhstan, Armenia, and Kyrgyzstan), has removed 75 developing countries and two least developed countries from the list of countries entitled to GSP preferences because they no longer match the criteria for enjoying economic support from the EAEU as prescribed in Decision No.47 dated April 6, 2016, of the council of EEC.
The EAEU's GSP preferential tax regimes should have ended as soon as the free trade agreement between Vietnam and the EAEU took effect in 2016. However, the EAEU has approved for Vietnam to continue to enjoy GSP for another five years after this agreement entered into force.
Apart from Vietnam, the EAEU also excludes several other countries from this list such as China, Korea, India, Singapore, and Brunei.
In 2020, bilateral trade between Vietnam and the EAEU reached $5.2 billion, up 6.5 per cent compared to 2019. Of this, exports from Vietnam reached about $3.1 billion, up 7.2 per cent compared to 2019; imports from the EAEU about $2.1 billion, increased by 5.5 per cent compared to 2019.
