Vietnam signs free trade deal with four European nations as US tariffs disrupt global commerce

Hanoi, October 18 — Vietnam joined forces with four European nations not part of the EU in signing a free trade agreement in the nation's capital. The deal, involving Southeast Asia's fastest-growing economy and the European Free Trade Association (EFTA) comprising Iceland, Liechtenstein, Norway, and Switzerland, eliminates customs duties on various imports.

This move aims to bolster economic ties and reduce reliance on major trading partners amidst the US tariffs disrupting global commerce, as stated by Vietnamese top leader To Lam. The agreement, signed after a decade-long negotiation hiatus, was initiated in 2012 and reignited in September last year. It encompasses trade in goods and services, intellectual property, trade remedies, and sustainable development.

EFTA nations' top exports to Vietnam last year included electrical and mechanical machinery, fish, and pharmaceutical products, while Vietnam's major exports to the EFTA were machinery, footwear, and apparel. The deal, signed amid the US's trade pressure on European countries, reflects a shared objective to diversify commercial relationships and promote greater strategic autonomy.