As Vietnam and Australia continue to strengthen their trade relationship, many are curious if a free trade agreement (FTA) has been established between the two nations. The short answer is yes, there is a free trade agreement between Vietnam and Australia.
The Vietnam-Australia Free Trade Agreement (FTA) was signed on March 8, 2015, and entered into force on December 14, 2015. The agreement covers a wide range of sectors including agricultural products, textiles, and services. Since its implementation, bilateral trade between Vietnam and Australia has grown significantly.
Under the FTA, Australian businesses are able to access the Vietnamese market more easily with reduced tariffs and other barriers. This has opened up new opportunities for Australian exporters to sell their goods and services to Vietnam. In turn, Vietnamese businesses are able to access the Australian market more easily as well, creating a two-way street of economic benefit.
One of the main benefits of the FTA is the reduction of tariffs on goods and services traded between the two countries. Tariffs on 95% of all goods traded between Vietnam and Australia were eliminated on the day the agreement entered into force. This means that Australian businesses are able to export their products to Vietnam at a lower cost, making them more competitive in the Vietnamese market.
Another benefit of the FTA is the protection of intellectual property rights. This provides investors and businesses with greater certainty and security when operating in each other`s markets. The FTA also includes provisions on environmental protection and labor rights, ensuring that trade between the two countries is both fair and sustainable.
In conclusion, the Vietnam-Australia Free Trade Agreement has been in effect since December 14, 2015. The FTA has opened up new opportunities for bilateral trade and investment, reducing tariffs and other barriers to trade between the two countries. The FTA has also provided greater protection for intellectual property rights and ensured that trade between the two countries is fair and sustainable.