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EU ends preferential tariffs for Vietnam’s footwear
The European Union will remove the imported Vietnamese-made footwear from the general system of preferences under a decision made by the European Council on June 11.
The decision was announced by the European Commission mission in Hanoi at a press briefing on June 13.
In response to questions about the difficulties facing millions of Vietnamese workers in the footwear industry due to the EU decision, EU Ambassador Sean Doyle said his mission was willing to offer Vietnam ’s exports, including footwear, a long-term, even broader tariff system during negotiations on an EU-ASEAN Free Trade Area (FTA).
He said pending an agreement on FTA and where GPS will expire in several months, Vietnam should consider a so-called “early harvest” agreement as a solution to its concerns.
He added that the EC would continue to support Vietnam ’s efforts in improving its competitiveness in international trade through official development assistance (ODA).
GSP was set up in 1971, providing preferential tariffs for developing countries free from discriminations or conditions of mutual interest.
Under the GSP rules, any country, whose exports account for 15 percent of the gross export revenues by GSP beneficiaries, is considered to reach a certain level of competitiveness and therefore it is not necessary for the country to be given preferential tariffs.
A representative from the EC mission explained Vietnam is in this category as its footwear exports made up 19 percent of the EU’s relevant gross imports from GSP beneficiary countries.
VNA
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