As per an Intel Asia report, Vietnam’s Ministry of Industry and Trade has announced the country’s textile and garment exports to the Eurasian Economic Union (EAEU) are about to exceed the trigger level, or the total amount subject to preferential tariffs allowed into the EAEU markets for this year. Vietnam’s dresses, skirts and other female clothing exports to the EAEU from January to July this year reached 79.4 percent of the quota, or the trigger level set for 2020.

As per the agreement’s Article 2.10 safeguard measures for 12 Vietnamese product lines for export, textiles and garments will be subject to safeguard measures while being shipped to the EAEU. Depending on the export volume that exceeds the trigger level, local textile-garment products will not be entitled to preferential taxes and will be imposed Most Favoured Nation import duties for a period from six to nine months.

The trade agreement came into force on October 5, 2016, enabling local enterprises and the EAEU, consisting of Russia, Belarus, Kazakhstan, Armenia and Kyrgysstan, to take advantage of trade and investment incentives and accelerate cooperation over the economy, trade and investment.

According to data from the general Department of Vietnam Customs, Vietnamese products enjoying preferential tariffs under the pact chiefly comprise textile-garments, footwear, seafood, agro items, phones and accessories.