First 296 tons of coffee exported to EU with zero tariffs
20:06 | 18/09/2020

VGP – Vinh Hiep Company Limited started shipping the first 14 containers of 296 tons of coffee with zero tariffs to Hamburg and Antwerp ports in Belgium and Germany under the European-Viet Nam Free Trade Agreement (EVFTA).

Illustration photo

Deputy Minister of Agriculture and Rural Development Le Quoc Doanh assessed that so far the EVFTA enforcement has brought about positive outcomes, with coffee export turnover estimated at US$ 76 million in August, representing a month-on-month increase of 34.7%.

Coffee is one of 13 Vietnamese key agricultural exports, contributing 3% of the national GDP and generating over 600,000 jobs.

Viet Nam has been the second largest coffee exporter and the biggest Robusta exporter, earning over US$3 billion in annual revenue.

Made-in-Viet Nam coffee has been available in over 80 countries and territories in which the EU is the biggest importer by occupying over 40% of the Vietnamese market shares and 38% of total export turnover.

Since the EVFTA came into effect on August 1 this year, the EU eliminated tariffs on all of the country’s unroasted or roasted coffee products from their previous levels of between 7% and 11%, while processed coffee will also enjoy a 0% tariff compared to the previous rate of 9% to 12%.

Simultaneously, the EU has also agreed to protect 39 Vietnamese GI under the terms of the EVFTA, including the GI of coffee, which serves to give the Vietnamese coffee industry an advantage over other rivals trying to penetrate the EU market.

Viet Nam and the EU inked the EVFTA in June 2019 and both parliaments ratified the trade deal early this year, paving the way for the deal to take effect on August 1. With preferential tariffs on offer, the enforcement of the EVFTA is expected to open wide the door for Vietnamese farm products to enter the EU market.

Over the past month, Vietnamese businesses have shipped first batches of rice and shrimp to the EU. Other agricultural products enjoying tariff cuts under the EVFTA include coffee, passion fruit, grapefruit, coconut, and dragon fruit./.

By Kim Anh  

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