A new trade agreement between Viet Nam and Cuba officially entered into force on April 1, 2020 after the two sides completed all the relevant procedures, according to the European-American Market Department under the Ministry of Industry and Trade (MOIT).

VN-Cuba trade agreement officially comes into force

With many new commitments on trade incentives, the pact is hoped to help bring bilateral economic, trade and investment ties on par with their sound political relationship.

The Viet Nam-Cuba Trade Agreement was signed in Ha Noi on November 9, 2018 to replace the 1996 deal between the two governments on trade exchange and other forms of economic cooperation.

The 14-chapter document includes regulations on trade in goods, rules of origin, customs management and trade facilitation, trade remedies, technical standards, food safety, and animal and plant quarantine.

Under the agreement, the two sides have pledged to eliminate or reduce tariffs on nearly all imports from each other’s market over the next five years.

On April 3, 2020, the Vietnamese Government recently issued Decree No. 39/2020/ND-CP promulgating a list of Viet Nam’s special preferential import tariffs to implement the Viet Nam-Cuba trade deal from now until 2023. A few days later, the MOIT issued Circular No. 08/2020/TT-BTC stipulating rules of origin of goods in the pact.

The deal officially taking effect is expected to contribute to creating a stable and open legal framework for the acceleration of bilateral trade and investment relations.

It will bring tremendous benefits to the business community of the two sides, facilitating goods imports and exports to each other’s market and further expanding two-way trade revenue, contributing to bringing Viet Nam-Cuba economic and trade ties to new heights.

The Viet Nam-Cuba Trade Agreement is considered the first pact that Cuba has signed with an Asian partner, which shows Cuba’s priority toward Viet Nam in its socio-economic integration and development strategy.