Title
FREE TRADE AGREEMENT BETWEEN THE EURASIAN ECONOMIC UNION AND ITS MEMBER STATES, OF THE ONE PART, AND THE SOCIALIST REPUBLIC OF VIET NAM, OF THE OTHER PART
Preamble
The Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation (hereinafter referred to as "the Member States of the Eurasian Economic Union"), and the Eurasian Economic Union, of the one part, and the Socialist Republic of Viet Nam (hereinafter referred to as "Viet Nam"), of the other part:
RECOGNISING the importance of enhancing their longstanding and strong friendship and the traditional multi-faceted cooperation between the Parties;
DESIRING to create favourable conditions for the development and diversification of trade between them and for the promotion of commercial and economic cooperation in areas of common interest on the basis of equality, mutual benefit, non-discrimination and international law;
REAFFIRMING their respective rights and obligations under the Marrakesh Agreement Establishing the World Trade Organization and other existing international agreements to which the Parties are party;
RECOGNISING the need to uphold the principles and practices which promote free and unhindered trade in a stable, transparent and non-discriminatory manner;
CONVINCED that this Agreement will enhance the competitiveness of the economies of the Parties in global markets and create conditions encouraging economic, trade and investment telations between them;
BEING CONSCIOUS of the importance of trade facilitation in promoting efficient and transparent procedures to reduce costs and ensure predictability;
EMPHASISING the complementarities of the economies of the Parties and the significant potential to advance economic relations by further developing the framework for trade and investment;
ACKNOWLEDGING the important role and contribution of investments in enhancing trade and cooperation between the Parties and the need to further promote and facilitate cooperation and greater business opportunities provided by this Agreement;
REAFFIRMING the importance of ongoing economic cooperation initiatives between the Parties, and agreeing to further develop the existing economic partnership in areas where the Parties have mutual interests;
DESIRING to eliminate barriers to trade and investment between the Parties, lower business costs and enhance economic efficiency; and
CONVINCED that joint efforts between the Parties towards an advanced free trade agreement will develop an enhanced framework for the promotion and development of economic and trade relations between the Member States of the Eurasian Economic Union and Viet Nam in their common interest and for their mutual benefit;
HAVE AGREED as follows:
Body
Chapter 1. GENERAL PROVISIONS
Article 1.1. General Provisions and Definitions
For the purposes of this Agreement, unless otherwise specified:
a) "central customs authority" means the highest authorised customs authority of each of the Member States of the Eurasian Economic Union or Viet Nam exercising, in accordance with the respective domestic laws and regulations, the functions of implementing the relevant government policies, regulations, control and supervision in the customs sphere;
b) "customs authorities" means the customs authority or customs authorities of the Member States of the Eurasian Economic Union or Viet Nam;
c) "customs duty" means any duty or charge of any kind imposed on or in connection with the importation of a good, but does not include any:
i. charge equivalent to an internal tax imposed consistently with Article III.2 of GATT 1994;
ii. fee or other charge in connection with the importation commensurate with the cost of services rendered; and
iii. duty imposed consistently with Chapter 3 (Trade Remedies) of this Agreement;
d) "days" means calendar days including weekends and holidays;
e) "declarant" means a person who declares goods for customs purposes or on whose behalf the goods are declared;
f) "Eurasian Economic Commission" means the permanent regulatory body of the Eurasian Economic Union in accordance with the Treaty on the Eurasian Economic Union of 29 May 2014 (hereinafter referred to as "the Treaty on the EAEU");
g) "GATS" means the General Agreement on Trade in Services, in Annex 1B to the WTO Agreement;
h) "GATT 1994" means the General Agreement on Tariffs and Trade 1994 and its interpretative notes, in Annex 1A to the WTO Agreement;
i)"good" means any merchandise, product, article or material;
j)"Harmonized System" or "HS" means the Harmonized Commodity Description and Coding System established by the International Convention on the Harmonized Commodity Description and Coding System, done on 14 June 1983 as adopted and implemented by the Parties in their respective laws and regulations;
k) "laws and regulations" includes any law or any other legal normative act;
l) "measure" means any measure by a Party, whether in the form of a law, regulation, tule, procedure, decision, administrative action, practice or any other form;
m) "originating" means qualifying under the rules of origin set out in Chapter 4 (Rules of Origin) of this Agreement;
n) "Parties" means the Member States of the Eurasian Economic Union and the Eurasian Economic Union acting jointly or individually within their respective areas of competence as derived from the Treaty on the EAEU, of the one part, and Viet Nam, of the other part;
o) "person" means a natural person or a juridical person;
p) "SCM Agreement" means the Agreement on Subsidies and Countervailing Measures, in Annex 1A to the WTO Agreement;
q) "SPS Agreement" means the Agreement on the Application of Sanitary and Phytosanitary Measures, in Annex 1A to the WTO Agreement;
r) "TBT Agreement" means the Agreement on Technical Barriers to Trade, in Annex 1A to the WTO Agreement;
s) "TRIPS Agreement" means the Agreement on Trade-Related Aspects of Intellectual Property Rights, in Annex 1C to the WTO Agreement;
t) "WTO" means the World Trade Organization established in accordance with the WTO Agreement; and
u) "WTO Agreement" means the Marrakesh Agreement Establishing the World Trade Organization, done on 15 April 1994. ARTICLE 1.2 Establishment of Free Trade Area The Parties hereby establish a Free Trade Area consistent with Article XXTV of GATT 1994 and Article V of GATS.
Article 1.3. Objectives
The objectives of this Agreement are:
a) to liberalise and facilitate trade in goods between the Parties through, inter alia, reduction of tariff and non-tariff barriers and simplification of customs formalities;
b) to liberalise and facilitate trade in services between the Parties;
c) to facilitate, promote and enhance investment opportunities between the Parties through further development of favourable investment environments;
d) to support economic and trade cooperation between the Parties;
e) to protect adequately and effectively intellectual property and promote cooperation in the field thereof; and
f) to establish a framework to enhance closer cooperation in the fields agreed in this Agreement and facilitate communications between the Parties.
Article 1.4. Joint Committee
The Parties hereby establish a Joint Committee comprising representatives of each Party, which shall be co-chaired by two representatives â one from the Eurasian Economic Union or from a Member State of the Eurasian Economic Union and the other from Viet Nam. The Parties shall be represented by senior officials delegated by them for this purpose.
Article 1.5. Functions of the Joint Committee
1. The Joint Committee shall have the following functions:
a) considering any matter related to the implementation and operation of this Agreement;
b) supervising the work of all committees and other bodies established under this Agreement;
c) considering ways to further enhance trade relations between the Parties;
d) considering and recommending to the Parties any amendment to this Agreement; and
e) taking other actions on any matter covered by this Agreement as the Parties may agree.
2. In the fulfilment of its functions, the Joint Committee may establish subsidiary bodies, including ad hoc bodies, and assign them with tasks on specific matters. The Joint Committee may, if necessary, decide to seek advice of third persons or groups.
3. Unless the Parties agree otherwise, the Joint Committee shall convene:
a) in regular session every year, with such sessions to be held alternately in the territories of the Parties; and
b) in special session within 30 days of the request of a Party, with such sessions to be held in the territory of the other Party or at such location as the Parties may agree.
4. The Joint Committee shall meet within 30 days of a Party giving an advance notice in accordance with Article 15.3 of this Agreement in order to discuss the implications of that action for the Parties and for any arrangement made under this Agreement. . All decisions of the Joint Committee, committees and other bodies established under this Agreement shall be taken by consensus of the Parties.
Article 1.6. Priority Investment Projects
1. Priority investment projects shall be approved by the respective Governments of the Member States of the Eurasian Economic Union on the one side and the Government of Viet Nam on the other side.
2. Notwithstanding other provisions of this Agreement and as a result of consultations of the Parties aimed at support of priority investment projects, the Parties shall be entitled to provide additional preferences. Such decisions shall be made by the relevant authorities of the respective Parties within their competence.
Article 1.7. Contact Points
1. Each Party shall designate a contact point or contact points to facilitate communications between the Parties on any matter covered by this Agreement and shall notify the Joint Committee of its contact point or contact points.
2. Upon request of a Party, the other Party’s contact point or contact points shall identify the office or official responsible for the matter and assist, as necessary, in facilitating communications with the requesting Party.
Article 1.8. Confidential Information
1. Each Party shall, in accordance with its respective laws and regulations, maintain the confidentiality of information provided in confidence by the other Party pursuant to this Agreement.
2. Nothing in this Agreement shall require a Party to provide confidential information, the disclosure of which would impede law enforcement, or otherwise be contrary to the public interest, or which would prejudice legitimate commercial interests of particular enterprises, public or private.
Article 1.9. General and Security Exceptions
1. Article XX of GATT 1994 and Article XIV of GATS are incorporated into and form part of this Agreement, mutatis mutandis.
2. Article XXI of GATT 1994 and Article XIV bis of GATS are incorporated into and form part of this Agreement, mutatis mutandis.
3. The Joint Committee shall be informed to the fullest extent possible of measures taken under paragraph 2 of this Article and of their termination
Article 1.10. Dual Use Goods and Services
The Parties recognise the sovereign right of the Member States of the Eurasian Economic Union and Viet Nam to regulate trade in dual use goods and services subject to their respective export control laws and regulations as well as international obligations.
Article 1.11. Measures to Safeguard the Balance of Payments
Article XII of GATT 1994 and the Understanding on the Balance-of-Payments Provisions of GATT 1994 are incorporated into and form part of this Agreement, mutatis mutandis.
Article 1.12. Relation to other International Agreements
1. This Agreement shall apply without prejudice to the rights and obligations of the Parties arising from bilateral and multilateral agreements to which the Parties are party, including the WTO Agreement and the Parties' respective WTO obligations and commitments.
2. Without prejudice to Article 4.7 of this Agreement, the provisions of this Agreement shall neither apply between the Member States of the Eurasian Economic Union or between the Member States of the Eurasian Economic Union and the Eurasian Economic Union, nor shall they grant Viet Nam the rights and privileges that the Member States of the Eurasian Economic Union grant exclusively to each other.
Article 1.13. Transparency
1. Each Party shall ensure, in accordance with its respective laws and regulations, that its laws and regulations of general application as well as its respective international agreements, with respect to any matter covered by this Agreement, are promptly published or otherwise made publicly available, including wherever possible in electronic form.
2. To the extent possible, in accordance with its respective laws and regulations, each Party shall:
a) publish in advance such laws and regulations referred to in paragraph 1 of this Article that it proposes to adopt; and
b) provide interested persons and the other Party with a reasonable opportunity to comment on such laws and regulations referred to in paragraph 1 of this Article that it proposes to adopt.
3. Upon request of a Party, the other Party shall promptly respond to specific questions and provide information on the laws and regulations referred to in paragraph 1 of this Article.
Chapter 2. TRADE IN GOODS
Article 2.1. Most-Favoured-Nation Treatment
1. With respect to customs duties and charges of any kind imposed on or in connection with importation or exportation or imposed on the international transfer of payments for imports or exports, and with respect to the method of levying such duties and charges, and with respect to all rules and formalities in connection with importation and exportation, and with respect to all matters referred to in paragraphs 2 and 4 of Article I of GATT 1994, any advantage, favour, privilege or immunity granted by a Party to any good originating in or destined for the territory of any third country shall be accorded immediately and unconditionally to the like good of the other Party or like good destined for the territory of such Party.
2. Nothing in paragraph 1 of this Article obliges a Party to provide the other Party with an advantage, favour, privilege or immunity on a most-favoured-nation basis which the former Party provides to any other third country fulfilling any of the following criteria:
a) to adjacent countries for the purposes of facilitating frontier traffic;
b) to the participants of a customs union, free trade area or regional economic organisation, or any other regional trade agreements as defined in Article XXIV of GATT 1994; or
c) to developing and least developed countries in accordance with GATT 1994, Generalized System of Preferences under United Nations Conference on Trade and Development or the respective laws and regulations of the Parties.
Article 2.2. National Treatment
Article III of GATT 1994 and the interpretative notes to this Article are incorporated into and form part of this Agreement, mutatis mutandis.
Article 2.3. Reduction and/or Elimination of Customs Duties
1. Except as otherwise provided for in this Agreement, each Party shall progressively reduce and/or eliminate customs duties on originating goods of the other Party in accordance with its schedule of tariff commitments in Annex 1 to this Agreement and shall not increase any customs duty or adopt any new customs duty resulting in the customs duty rate for originating goods of the other Party exceeding the level specified in its schedule of tariff commitments in Annex 1 to this Agreement.
2. A Party may, at any time, unilaterally accelerate the reduction and/or elimination of customs duties on originating goods of the other Party set out in its schedule of tariff commitments in Annex 1 to this Agreement. This shall not preclude either Party from raising a customs duty to the level established in its schedule of tariff commitments in Annex 1 to this Agreement for the respective year following a unilateral reduction. A Party considering such raise, reduction and/or elimination of a customs duty shall inform the other Party as early as practicable before the new rate of customs duty takes effect.
3. The Parties may consider accelerating the reduction and/or elimination of customs duties set out in their schedules of tariff commitments in Annex 1 to this Agreement by amending this Agreement in accordance with Article 15.5 of this Agreement.
4. If the rate of customs duty on an originating good of a Party applied in accordance with Annex 1 to this Agreement is higher than the most-favoured-nation applied rate of customs duty on the same good, such good shall be eligible for the latter one.
Article 2.4. Changes to HS Code and Description
1. Each Party shall ensure that any change to its HS code and description shall be carried out without impairing tariff concessions undertaken in accordance with Annex 1 to this Agreement.
2. Such change to the Eurasian Economic Union HS code and description and Viet Nam HS code and description shall be carried out by the Eurasian Economic Commission and Viet Nam, respectively. The Parties shall make any change to their HS code and description publicly available in a timely manner and inform each other every three months.
Article 2.5. Fees, Charges and Formalities Connected with Importation and Exportation
1. Article VIII of GATT 1994 and the interpretative notes to this Article are incorporated into and form part of this Agreement, mutatis mutandis.
2. Each Party shall ensure that its competent authorities make available through their official websites information about fees and charges it imposes.
Article 2.6. Administration of Trade Regulations
Each Party shall administer in a uniform, impartial and reasonable manner all its laws, regulations, judicial decisions and administrative rulings of general application pertaining to trade in goods between the Parties in accordance with Article X of GATT 1994.
Article 2.7. Subsidies
1. The rights and obligations of the Parties in respect of subsidies for goods not covered by the Agreement on Agriculture, in Annex 1A to the WTO Agreement, shall be governed by the provisions of Article XVI of GATT 1994, the SCM Agreement and their respective WTO obligations and commitments.
2. The Parties share the objective of multilateral elimination of export subsidies for agricultural goods.
3. The rights and obligations of the Parties in respect of export subsidies on any agricultural good destined for the territory of the other Party shall be governed by their respective WTO obligations and commitments.
4. Each Party shall ensure transparency in the area of subsidies covered by this Article. Upon request of a Party, the other Party within a reasonable period of time shall give notice on a specific subsidy, as defined in the SCM Agreement, that it grants or maintains. Such notice shall contain the information set out in Article 25.3 of the SCM Agreement.
Article 2.8. Import Licensing
1. Each Party shall ensure that its import licensing procedures, as defined in Articles 1 through 3 of the Agreement on Import Licensing Procedures, in Annex 1A to the WTO Agreement (hereinafter referred to as "the Agreement on Import Licensing Procedures"), are implemented in a transparent and predictable manner, and applied in accordance with the Agreement on Import Licensing Procedures.
2. Each Party shall publish its rules and information concerning licensing procedures in a manner consistent with Article 1.4 of the Agreement on Import Licensing Procedures. A Party which introduces licensing procedures or changes in these procedures shall notify the other Party of such licensing procedures or changes in these procedures within 60 days of publication. Such notification shall contain information set out in Articles 5.2 and 5.3 of the Agreement on Import Licensing Procedures. The information shall be provided through a contact point of each Party designated for this purpose.
Article 2.9. Quantitative Restrictions
1. Neither Party may adopt or maintain any quantitative restriction, including prohibition or restriction on the importation of any good of the other Party or on the exportation of any good destined for the territory of the other Party, except in accordance with its WTO obligations and commitments, and to this end Articles XI and XII of GATT 1994 and the interpretative notes to these Articles are incorporated into and form part of this Agreement, mutatis mutandis.
2. Each Party shall ensure the transparency of any quantitative restriction permitted in accordance with paragraph 1 of this Article and shall ensure that any such measure is not prepared, adopted or applied with a view to, or with the effect of, creating unnecessary obstacles to trade between the Parties.
Article 2.10. Trigger Safeguard Measures
1. The Eurasian Economic Union may apply a trigger safeguard measure to originating goods of Viet Nam listed in Annex 2 to this Agreement and imported into the territories of the Member States of the Eurasian Economic Union if the volume of imports during any calendar year exceeds the relevant trigger level for that year specified in Annex 2 to this Agreement.
2. A trigger safeguard measure shall be applied in the form of a customs duty equal to the most- favoured-nation rate of customs duty applied with respect to the goods concerned on the date when the trigger safeguard measure comes into effect.
3. A trigger safeguard measure shall be applied for a period of time not exceeding six months.
4. Notwithstanding paragraph 3 of this Article, if on the date of the application of the trigger safeguard measure the volume of imports concerned exceeds 150 percent of the relevant trigger level, the period of application of such measure may be extended by another three months.
5. The Eurasian Economic Commission shall publish the data on the volume of imports concerned in a readily accessible manner for Viet Nam. Upon finding that the conditions referred to in paragraph 1 of this Article are met, the Eurasian Economic Commission shall immediately give notice thereof in writing. The Eurasian Economic Commission shall also give notice in writing at least 20 days before taking decision on the application of a trigger safeguard measure, as well as three days after taking such decision, provided that such decision comes into effect not earlier than 30 days from the date the decision is taken, without prejudice to the right of the Eurasian Economic Union to apply such measure. If the Eurasian Economic Union decides not to apply the trigger safeguard measure it shall promptly notify Viet Nam of its decision in writing.
6. Upon request of a Party, the other Party shall promptly enter into consultations and/or provide the requested information with the aim of clarifying the conditions of imposition and application of a trigger safeguard measure under paragraphs 1 through 4 of this Article.
7. Every three years from the date of entry into force of this Agreement, the Parties shall review the operation of this Article and, if necessary, jointly decide to amend this Article as well as Annex 2 to this Agreement in accordance with Article 15.5 of this Agreement.
Article 2.11. State Trading Enterprises
Each Party shall ensure that its state trading enterprises operate in consistence with Article XVII of GATT 1994 and its WTO obligations and commitments.
Article 2.12. Committee on Trade In Goods
1. The Parties hereby establish the Committee on Trade in Goods (hereinafter referred to as "the Goods Committee"), comprising representatives of each Party.
2. The Goods Committee shall meet upon request of either Party to consider any matter arising under this Chapter and under Chapters 3 (Trade Remedies), 4 (Rules of Origin), 5 (Customs Administration and Trade Facilitation), 6 (Technical Barriers to Trade) and 7 (Sanitary and Phytosanitary Measures).
3. The Goods Committee shall have the following functions:
a) reviewing and monitoring the implementation and operation of the Chapters referred to in paragraph 2 of this Article;
b) reviewing and making appropriate recommendations, as needed, to the Joint Committee on any amendment to the provisions of this Chapter and to the schedules of tariff commitments in Annex 1 to this Agreement in order to promote and facilitate improved market access;
c) identifying and recommending measures to resolve any problem that may arise;
d) reporting the findings on any other issue arising from the implementation of this Chapter to the Joint Committee.
Chapter 3. TRADE REMEDIES
Article 3.1. Countervailing Measures
1. The Parties shall apply countervailing measures in accordance with the provisions of Articles VI and XVI of GATT 1994 and the SCM Agreement.
2. For the purposes of conducting countervailing investigations and applying countervailing measures by Viet Nam, the Member States of the Eurasian Economic Union shall be considered individually and not as the Eurasian Economic Union as a whole, unless there are subsidies within the meaning of Article XVI of GATT 1994 and the SCM Agreement available at the level of the Eurasian Economic Union for all Member States of the Eurasian Economic Union.
Article 3.2. Anti-Dumping Measures
2. For the purposes of conducting anti-dumping investigations and applying anti-dumping measures by Viet Nam, the Member States of the Eurasian Economic Union shall be considered individually and not as the Eurasian Economic Union as a whole, unless both Parties agree otherwise.