   
  
WT/REG385/M/1  
 
8 October 2019 
(19-6523) Page: 1/4 
Committee on Regional Trade Agreements   
 
FREE TRADE AGREEMENT  BETWEEN THE EURASIA N ECONOMIC UNION (EA EU) AND 
VIET  NAM, GOODS AND SERVI CES 
NOTE ON THE MEETING OF 17 SEPTEMBER 2019  
Chairman: Ambassador Carlos Mario FORADORI (Argentina)  
1.1.  The 94th Session of the Committee on Regional Trade Agreements (hereinafter 'CRTA' or the 
'Committee') was convened in Airgram WTO/AIR/RTA/19 /Rev.1  dated 4 September 2019.  
1.2.  Under Agenda Item E.II of the Session, the CRTA considered the Free Trade Agreement 
between the Eurasian Economic Union (EAEU) and Viet Nam, (goods and services), (hereinafter "the 
Agreement").  
1.3.  The Chairman  noted that the Agreement had entered into force on 5 October 2016 . It had been 
notified to the WTO by the Parties on 4 May 2017 under Article  XXIV:7(a) of the GATT  1994 and the 
Understanding on the Interpretation of Article  XXIV of GATT 1994 as an Agreement establishing a 
free trade area (document  WT/REG 385/N/1) and under GATS  Article  V:7(a) as an Agreement 
providing for the liberalization of t rade in services within the meaning of Article V of the GATS 
(document S/C/N/889). The text of the Agreement was available, together with its Annexes, on the 
Parties' official websites. The Factual Present ation on the goods and services aspect s 
(document  WT/REG 385/1 dated 21 June 2019) and questions and replies on the Agreement 
(document WT/REG 385/2 dated 3 September 2019) had been distributed.  
1.4.  The representative of the Russian Federation  thank ed the Secretariat for the preparation of the 
Factual Presentation  as well as th e WTO Members who had expressed their interest in th e Agreement 
and had prepared written questions, to which the Russian Federation had provided answers within 
the established de adlines. He also thank ed the Permanent Missions of the EAEU members and 
Viet Nam for the fruitful cooperation during the preparation of the written answers.  
1.5.  He highlighted several facts about that the Agreement. It had been  signed on 29 May 2015 
and had entered into force on 5  October  2016. It was an historic document for the EAEU , as it was 
the first FTA concluded by the Union with a third party. The purpose of th e Agreement was the 
promotion of mutual trade and economic relations aimed at the acceleratio n of economic 
development of the Parties, increasing employment, and achieving financial stability. Under the 
Agreement there w ould be a steady decline in applied tariff rates. In the coming decade the EAEU 
members ' average  overall  rate on imports  from Viet  Nam was expected to be lowered from 9 .8 to 
2.5%. For agricultural goods import tariffs would decrease from 9 .9% to 5 .6%; for industrial goods 
they would decrease from 8 .0% to 1 .2%. As a result, in 10 years ' time Viet  Nam's exporters w ould 
enjoy a duty -free regime for goods export ed to the EAEU market on 90% of the common customs 
tariff lines.  For the Russian Federation and Viet  Nam, the Agreement also provide d for the mutual 
liberalization of trade in services, as well as facilitation of investme nt procedures and the movement 
of persons. The Russian Federation hoped that this would pave the way for other EAEU members to 
enhance their economic cooperation with Viet  Nam.  
1.6.  The scope of the Agreement was quite broad and cover ed all the main areas of t rade and 
economic cooperation , as well as protection of intellectual property rights, sustainable development, 
electronic commerce, government procurement and competition protection guidelines.  The Russian 
Federation looked forward to a constructive exchange of views on all aspects of the Agreement.  WT/REG385/M/1  
 
- 2 - 
 
  1.7.  The representative of Kazakhstan  thanked the WTO Secretariat for preparing the F actual 
Presentation on the FTA, and very much appreciate d the contribution of all the EAEU member States, 
the Eurasian Economic Commission as well as the Government of Viet Nam to this process.  She also 
thank ed Canada and Ecuador for their interest and written questions.   
1.8.  As earlier mentioned, Viet Nam was the first State with which the EAEU member States had 
conclu ded a Free trade agreement jointly as a Union.  The FTA had been  signed in May 2015 and was 
aimed primarily at facilitating better market access for goods.  The Agreement included  commitments 
related to the mutual liberalization of trade in services, investm ents and the movement of 
individuals, which only appl ied to relations between the Russia Federation and Viet Nam.  
1.9.  The Agreement cover ed all areas of trade and economic cooperation. It define d cooperation 
mechanisms in a number of  areas, such as technical barriers to trade, sanitary and phytosanitary 
measures, intellectual property, competition, customs administration, government procurement,  as 
well as others . The Agreement provide d favorable trade opportunities for the businesses  of the EAEU 
and Viet  Nam to access each other 's markets.  The trade in goods chapter provide d for a liberalization 
of the EAEU average tariff rate for imports from Viet Nam from 9.8% to 2 .5%. Similarly, Viet Nam 's 
average tariff rate for EAEU member States goods would be  reduced from 10% to 1%.  
1.10.   The Agreement had already demonstrated its effectiveness and positive dynamics for trade.  
Statistical comparative data for 2015 and 2018 had indicate d a positive trend in bilateral trade 
between Kazakhsta n and Viet Nam. T rade amounted to around USD 470 million in 2018, showing 
an increase by double  compared to 2015 figure s (USD 206.0 million) .  
1.11.   Major imports by Viet Nam from Kazakhstan were metallurgical products and agricultural 
products, in particular wheat . Kazakhstan 's major imports were electrical equipment.  These figures 
allowed Kazakhstan to give a positive assessment of the Agreement.  Kazakhstan believe d in the 
continued development of trade and economic relations between member States.  She looked  
forward to a fruitful discussion and would endeavour to reply to Members' questions in addition to 
the written answers already provided.  
1.12.   The representative of the Kyrgyz Republic  noted that  the Kyrgyz Republic became a 
full-fledged member of the EAEU on 12 August 2015 after Viet  Nam ha d signed the free -trade 
agreement with the EAEU on 29 May 2015. The Kyrgyz Republic noted also that the EAEU had started 
FTA negotiations with ASEAN members, creating a very positive perspective for further cooperation.   
1.13.   Since 2015 the Kyrgyz Republic 's export s to Viet Nam had been  spare parts, raw silk and 
threads. Viet  Nam's export s to the Kyrgyz Republic had been  mainly automatic data -processing 
machines and units thereof, razors and razor blades, Vietnamese medicines, and electronic devices . 
Between 2016 and the end of 2018, bilateral trade between the Kyrgyz Republic and Viet  Nam had 
increased by 220.5%. Consecutive positive annual growth meant there was optimism for future 
trade.  Viet Nam had also becom e an attractive tourist destination for Kyrgyz citizens.  
1.14.   In terms of multilateral dynamics in the Union, the picture was very positive. The FTA already 
showed positive initial results: in 2017, the foreign trade turnover of the Union and Viet  Nam 
increased by 36.7% compared to 2016, exports increased by 39.6%  and imports by 35.7%.  
Meanwhile cooperation between the EAEU and Viet  Nam had continue d to develop . As a part of the 
implementation of the F TA a single Protocol between the central customs authorities on electronic 
exchange of customs information was being implemented between the member States of the Union 
and Viet  Nam. The exchange of information under  the Protocol w ould be based on the use of the 
integrated information system of the  EAEU, forming solid ground for boosting and facilitating mutual 
trade.  
1.15.   The Kyrgyz Republic hoped that the FTA would have a positive im pact on the strengthening 
and expan sion of trade in goods and services. At the last East Economic Forum held in Vladivostok, 
cooperation between the EAEU and ASEAN remain ed modest and had not yet realize d the potential 
of the Parties. The Kyrgyz Republic stood ready to deepen and strengthen co-operation,  both 
bilaterally and multilaterally  and thanked the delegation of Viet Nam for its commitment towards 
further fruitful cooperation.   
1.16.   The representative  of Viet Nam  thanked the WTO Secretariat for their effo rts in preparing the  
Factual Presentation  on the Agreement, as well as Eurasian Economic Union members, for their close WT/REG385/M/1  
 
- 3 - 
 
  and fruitful cooperation. Viet Nam also appreciated Members ' interest in the Agreement and the 
questions r aised in relation to i t. 
1.17.   The Agreement had been  signed on 29 May 2015  and had entered into force  on 5 October 
2016.  In line with Viet Nam's strategic policy of open and free trade,  and thanks to the good 
relationship between Viet Nam and the EAEU members,  as well a s the hard work done by their 
respective Governments,  negotiations for th e Agreement had been concluded in only 2 years. The 
Agreement was comprehensive and of high quality.  It was in full compliance with the spirit, principles  
and rules  of the WTO . The Agreement covered all trade related matters . It included commitments 
to reduce and eliminate customs duty for nearly 90% of tariff lines and to open markets in service s 
and investment areas. It also contained commitments to strengthen cooperation in areas such as 
trade reme dies, rules of origin, customs administration , technical barriers  to trade , sanitary and 
phytosanitary measures, government procurement, intellectual  property rights , and sustainable 
development . The Agreement present ed huge opportunities  for the entrepren eurs of both sides to 
enjoy improved  access to each others markets and facilitated business and investment operations, 
given that Viet Nam  was the first country to have a preferential agreement with  the EAEU.  
1.18.   Since the Agreement had entered into force,  trade in goods  between  the EAEU  and Viet Nam  
had increased substantially.  In 2016, two -way trade between the EAEU and Viet Nam reached 
USD 4.34 billion, up 1.65% as compared to 2015. In 2017,  trade jumped to  USD 5.9 billion, a 
36.46 % increase . In 2018,  trade increased to USD 6.7 billion, 12.95% higher than in 2017. There 
was still great potential for increasing trade between the two sides in the coming years with further 
duty phase -outs still in the pipeline.  The EAEU market had high  demand for many  products in which 
Viet Nam's  businesses ha d significant advantages, such as garments, footwear , electronics, 
agricultural products such as rice, pepper, vegetables, and seafood . Viet Nam imported c hemical s, 
products for paper industry  processing, petroleum, f ertilizers, machinery and industrial equipment  
from the EAEU. Viet Nam  believe d that the Agreement  had contribute d to enhanced opportunities 
for investment, export diversification and economic growth and also brought the promise of 
significant potential be nefits for the long -term.  
1.19.   Overall,  the Agreement was a milestone in the history of the relationship between  the EAEU 
and Viet Nam . Viet Nam would continue to work with the EAEU to promote and  fully implement the 
Agreement, and to make it an effective frame work for further  enhancing trade and investment.  
1.20.   The representative of Belarus  thanked  the WTO Secretariat for the preparation of the Factual 
Presentation of the Free Trade Agreement between the Eurasian Economic Union (EAEU)  and its 
member States, and Viet Nam, signed on 29 May 2015 in Burabai Kazakhstan, and which had 
entered into force on 6 October 2016. He also thank ed Canada and Ecuador for the interest shown 
and for their written questions.  
1.21.   For Belarus, as an acceding country to the WTO, it was a pleasure and honour to participate 
for the second time in the work of the Committee together with our partners from the EAEU and 
Viet Nam all of which were already Members of the Organization. Belarus had taken  an active part 
in the preparation of the joint  answers to the questions from WTO Members on the Factual 
Presentation. He consider ed it to be Belarus' modest contribution to the Transparency Mechanism.  
1.22.   Viet Nam was a traditional and historical partner of Belarus in the Southeast Asia n region. 
Belarus a nd Viet Nam enjoyed very good relations in political and economic areas. In 2018, bilateral 
trade in good s between Belarus and Viet  Nam amounted to USD 115 million. From January through 
July 2019, the growth rate of bilateral trade in goods was more than 65 % and amounted to 
USD 116 million. Belarus actively participate d in national exhibitions organized in Hanoi and Ho  Chi 
Minh. 
1.23.   Belarus currently export ed to Viet Nam potash fertilizers, products of heav y machinery, 
including trucks and tractors, spare articles and accessories for them, polyamides, poultry and beef. 
Belarus import ed from Viet Nam nuts, natural rubber, fish products, rice, communication and 
printing equipment  and leather shoes. Belarus saw  the FTA contributing to the further expan sion of 
bilateral trade. The Agreement was the first full -fledged FTA concluded by the EAEU and its members 
with a third country.  The Agreement create d the  conditions for enhancing trade and economic 
cooperation be tween the EAEU member States and Viet Nam and for finding new "growth points " WT/REG385/M/1  
 
- 4 - 
 
  for quantitative improvement in mutual trade, which had resulted in a 30% growth in trade volumes 
within the first year of its application.  
1.24.   The Agreement had opened up new opport unities for deepening production cooperation. With 
the launch of the free trade regime, Viet Nam could become an "entrance gate " for Belarusian goods, 
which he hope d would allow Belarus' Vietnamese partners to produce and export goods to the market 
of neighbo uring countries  such as ASEAN member States.  As a founding member of the EAEU, based 
on WTO rules and principles, Belarus de facto applie d most provisions of the WTO Agreements and 
was therefore ready t o apply them de jure once it became a full-fledged WTO Member. Belarus also 
reassure d WTO Members of its strong intention to become a WTO Member in the nearest future , and 
hoped to finalise its accession negotiations before the 12th WTO Ministerial Conference in Nur -Sultan 
in June 2020.  Belarus invited  Members to seek an y needed clarifications on specific issues of the 
trade regime under the FTA between the EAEU, and its member States, o n the one hand, and Viet 
Nam, on the other hand , and looked forward to a fruitful discussion.  
1.25.   The representative of th e United States  thanked  the Parties to the Agreement for the 
information and replies to questions provided and the Secretariat for the preparation of the Factual 
Presentation. The presentations made by the Parties were very informative.  
1.26.   The Chairman  noted that t he consideration of the Goods and Services Aspects of the Free 
Trade Agreement between the Eurasian Economic Union (EAEU) and Viet Nam ha d allowed the 
Committee to clarify a number of questions and it could now conclude oral discussion  of the RTA in 
accordance with paragraph 11 of the Transparency Mechanism. If any delegations wish ed to ask 
follow up questions they were invited to forward submissions in writing to the Secretariat by 
24 September 2019 . Parties were asked to submit replie s in writing by no later than 8 October 2019. 
In accordance with paragraph 13 of the Transparency Mechanism all written submissions, as well as 
minutes of this meeting w ould be circulated promptly, in all WTO official languages, and would be 
made available  on the WTO website.  
1.27.   The Committee took note  of the comments made.  
__________  
 