Media: UAE and Vietnam signed comprehensive economic partnership agreement
Under the provisions of the CEPA, the UAE has pledged to eliminate tariffs on 99% of Vietnamese exports, while Vietnam has committed to removing tariffs on 98.5% of exports from the UAE.
On Tuesday, October 29, 2024, the United Arab Emirates (UAE) and Vietnam officially signed a Comprehensive Economic Partnership Agreement (CEPA), marking a pivotal moment as Vietnam establishes its first free-trade agreement with a Middle Eastern nation.
This landmark agreement aims to significantly enhance trade relations between the two countries, opening avenues for exporters and investors across key sectors such as agriculture, energy, technology, and logistics. The CEPA is a strategic step for Vietnam as it seeks to deepen its trade engagement with the Middle East.
Under the provisions of the CEPA, the UAE has pledged to eliminate tariffs on 99% of Vietnamese exports, while Vietnam has committed to removing tariffs on 98.5% of exports from the UAE. This reciprocal tariff reduction is anticipated to further strengthen bilateral trade, which reached approximately $4.7 billion in 2023—a 6% increase from the previous year.
In the polyolefin sector, Vietnam currently levies a 3% import duty on homo-PP and PP block copolymer from the UAE. Industry stakeholders are keenly awaiting additional details from the government, expressing optimism that the new agreement could lead to the elimination of this tariff.