Trade Deal Expected To Stimulate Vietnamese Coffee Exports To EU
Under the EU-Vietnam Free Trade Agreement (EVFTA) that came into force on August 1, tariffs on all coffee products from Vietnam were eliminated.
Earlier roasted and unroasted coffee attracted 7-11 per cent import tax, and processed coffee, 9-12 per cent.
Analysts expect EVFTA to give a big boost to Vietnam’s coffee exports to the world’s largest market.
They pointed out that Vietnamese coffee has geographical indication and is protected in the EU under the trade deal, creating a huge competitive advantage.
According to the latest estimates, the EU is likely to import an additional two million 60kg bags of coffee this year, increasing its total imports to 40.5 million sacks.