Vietnam will slash import taxes on many important items, including garment, automobile and petroleum products, under its commitments regarding the World Trade Organization (WTO) and free trade areas, local newspaper Youth reported Wednesday.
Under the WTO commitments bilaterally made to its partners, Vietnam will lower average agriculture tariff to 21 percent from current 23.5 percent, and industry tariff to 12.6 percent from 16. 6 percent, the newspaper quoted sources from the country's Finance Ministry.
Most of the tariffs will be slashed within five years from the date of Vietnam's accession to the WTO. Items with import taxes to decrease most considerably include garment, textile, fish, wood, paper, electrical equipment and some other manufactured goods.
Regarding the ASEAN (Association of Southeast Asian Nations) Free Trade Area, Vietnam will, in the coming time, reduce tariffs on completely-built motorbikes, automobiles and petroleum products.
With regard to the ASEAN-China Free Trade Area, Vietnam, along with other ASEAN members, will have to lower taxes on such sensitive items as poultry eggs, sugar, cigarette, engine, means of transport, petroleum products, steel, construction materials, electronics appliances, refrigeration and paper, in the 2015-2018 period.
Vietnam on May 12 concluded the WTO bilateral negotiations with the United States, the last of 28 partners which required bilateral talks, paving the way for the Southeast Asian nation to join the global trading club, hopefully late 2006, after 11 years of bilateral and multilateral negotiations.
Under a deal on the conclusion officially signed by the two countries on May 31, Vietnam will impose import taxes of 15 percent or less on roughly three-fourths of U.S. agricultural exports, including cotton, selected beef, pork, whey, grape, apple, pear and soybean. Vietnam's current average applied tariff on agricultural products is 27 percent.
Regarding manufactured goods, about 94 percent of Vietnam's import from the United States will face duties of 15 percent or less. Duties for key products in the construction equipment, pharmaceuticals and aircraft sectors are 0-5 percent.
