`EU-Vietnam Trade Agreement Opens Door for European Producers

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EU-Vietnam Trade Agreement Opens Door for European Producers

Apr. 17, 2020
Daniel Dawson

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The Euro­pean Coun­cil has approved a free trade agree­ment (FTA) between the Euro­pean Union and Viet­nam.

The FTA is expected to come into force dur­ing the sum­mer of 2020, after it is passed by the Viet­namese National Assem­bly.

Once approved, exist­ing tar­iffs on olive oil in all of its frac­tions will be elim­i­nated. E.U. olive oil exports to Viet­nam cur­rently face an aver­age tar­iff of 8.7 per­cent, accord­ing to data from the Inter­na­tional Trade Cen­ter.

In a 2019 report on the Viet­namese olive oil mar­ket, the Span­ish Insti­tute for For­eign Trade (ICEX) listed these tar­iffs as one of the major bar­ri­ers pre­vent­ing more Span­ish olive oil pro­duc­ers from access­ing the lucra­tive mar­ket.

The removal of the tar­iffs now paves the way for olive oil exporters to access Vietnam’s rapidly ris­ing mid­dle class. The South­east Asian coun­try is home to more than 95 mil­lion peo­ple and is viewed as fer­tile ground for Euro­pean olive oil exporters due to steadily ris­ing wages and con­sumer spend­ing.

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Olive oil is well known and appre­ci­ated in Viet­nam where it is mainly used for its healthy qual­i­ties,” ICEX wrote the report. Almost all media devoted to health, beauty or lifestyle rec­om­mend the use of olive oil.”

Spain, Italy and Greece already com­bine to dom­i­nate the Viet­namese olive oil mar­ket, mak­ing up nearly 97 per­cent of its olive oil imports in 2018, the last year for which data is avail­able.

Also included in the deal is the recog­ni­tion of seven dif­fer­ent geo­graph­i­cal indi­ca­tors from both Spain and Greece, includ­ing Ante­quera, Baena, Priego de Cór­doba, Sierra de Segura, Sierra Mágina, Kala­mata and Sitia Lasithiou Kri­tis.





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