Does the FTA VN-EAEU help increase shrimp exports to Russia?
(11/18/2019 12:00:00 AM)
Russia ranked 40th in Vietnamese shrimp
imports, representing 0.3% of Vietnam's total shrimp export value to
markets. Currently, Russia has just imported a little and tends to
reduce shrimp imports from Vietnam. So, the Free Trade Agreement between
the Economic Union of Vietnam and Eurasia (FTA VN-EAEU ) helps boost
the export of Vietnamese shrimp to Russia?
Vietnam
Free Trade Agreement - Eurasian Economic Union (EAEU - including
Russia, Republic of Belarus, Kazakhstan, Republic of Armenia and Kyrgyz
Republic) was signed on May 29, 2015, and is effective as of October 5,
2016. This is also the first EAEU FTA in which Vietnam mainly exports
shrimp to Russia.
Under
the EAEU commitment for Vietnamese shrimp with products HS code
030616910, 030616990, 030617910, 030617920, 030617930, 030617940,
030617990 will be reduced from the basic tax rate of 10% to 0% just
after the VN-EAEU FTA is effective. The products of HS160521 and 160529
encoded shrimp (processed or preserved shrimp and other types of
shrimp), 160530 (processed lobster) are reduced from the basic tax rate
of 20% to 0% immediately after the agreement is valid.
Therefore,
the main Vietnamese shrimp products exported to Russia include codes HS
030617, 030616 and processed shrimp, including codes HS 160521 and
160529, are exempt from taxes after the VN-EAEU FTA enters into force.
However, the export of Vietnamese shrimp to Russia has not taken
advantage of this advantage.
In
recent years, Vietnamese shrimp export companies still focus on
exploiting attractive traditional markets and have not appreciated fully
the consumption potential in Eastern Europe.
In
the context of the FTA-VN-EAEU, incentives have been created to export
shrimp from Vietnam to Russia while competitors in the Russian market
(India, Ecuador, China, Indonesia, Thailand, Bangladesh) do not have a
FTA with the EAEU yet. Vietnamese shrimp exporters need to remain and
develop domestic raw materials to comply with the rules of origin while
improving the competitiveness of companies and products to meet quality
standards and market techniques.
VIFEP (Vasep)
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