Israel and Vietnam Sign Free Trade Agreement, to eliminate Duty Taxes

In Tel Aviv on July 26, Israel and Vietnam signed a free trade agreement. According to the Vietnamese ministry of industry and trade, the Vietnam-Israel Free Trade Agreement (VIFTA) will eventually eliminate duties on at least 86% of Vietnamese products and 93% of Israeli products. It is expected that two-way trade will soon reach $3 billion.

The agreement was signed in the presence of Vietnamese Deputy Prime Minister Tran Luu Quang and Israeli Prime Minister Benjamin Netanyahu by Israeli Economy and Industry Minister Nir Barkat and Vietnamese Industry and Trade Minister Nguyen Hong Dien.

The FTA negotiations began seven years ago. According to a news agency, Israel is the first country in West Asia with which Vietnam has signed an FTA, and Vietnam is also the first country in Southeast Asia with which Israel has signed an FTA.

The agreement is divided into 15 chapters and several appendices covering trade in goods, services, investment, rules of origin, technical trade barriers, sanitary and phytosanitary measures, customs, trade remedies, government procurement, and the legal and institutional framework.

The FTA is also expected to create a favourable environment for Vietnam's exports to other markets in the Middle East, North Africa, and southern Europe.

Israeli products and technology will also have greater access to markets in the Association of Southeast Asian Nations.