The UK Free Trade Agreement with Vietnam: What You Need to Know
In December 2020, the UK and Vietnam signed a historic free trade agreement, marking the UK`s first major trade deal in Southeast Asia since Brexit. The agreement is set to provide new opportunities for British businesses and create hundreds of jobs across various industries.
But what does this trade agreement mean for both countries? And how will it impact the economic landscape of the UK and Vietnam? We’ll break down the key points of the UK-Vietnam free trade agreement to give you a more in-depth understanding.
Tariff Reductions
One of the essential features of the UK-Vietnam free trade agreement is the tariff reductions on goods traded between the two countries. Initially, the agreement will eliminate tariffs on 65% of UK exports to Vietnam and 71% of Vietnam`s exports to the UK. Over time, tariffs will be eliminated on almost all of the goods traded between the two countries, providing significant opportunities for businesses to boost their trade growth.
Services and Investment
The UK-Vietnam free trade agreement will also provide British businesses with the opportunity to enter the Vietnamese market and invest in various industries, including finance, telecommunications, and professional services. The agreement will also eliminate barriers to cross-border trade in services, making it easier for businesses to provide services to customers in both countries.
Intellectual Property Rights (IPR)
The free trade agreement also includes robust provisions on intellectual property rights (IPR). Both countries have agreed to adhere to international standards on IPR, ensuring that businesses` intellectual property rights in the UK and Vietnam are protected. This will encourage more innovation and creativity between the two nations.
Environmental and Labour Standards
The UK-Vietnam free trade agreement includes commitments on environmental and labor standards. Both countries have agreed to uphold the highest levels of environmental protection, including commitments to reduce greenhouse gas emissions and tackle climate change. The agreement also ensures that workers` rights and working conditions are protected in both countries, creating a fair and ethical trading environment.
Conclusion
The UK-Vietnam free trade agreement is an essential milestone for both countries` trade relationship. The agreement will provide significant opportunities for businesses in both nations, creating new jobs and boosting economic growth. It will also help to reinforce the global trading system and promote free and fair trade.
Overall, with the tariff reductions, provisions on intellectual property rights and commitments to environmental and labour standards, the UK-Vietnam free trade agreement is a crucial step towards building an open and prosperous trading relationship between the UK and Vietnam.