Vietnam expects to sign a long-anticipated free trade agreement with the European Union before the end of June. Both the sides have agreed to make joint efforts for the Vietnam-EU free trade agreement (EVFTA) to be ratified as soon as possible.

The trade deal would eliminate 99 percent of all tariffs, although some would be implemented over a time period and some, notably agricultural products, limited by quotas. Vietnam, for example, would cut its duty on EU car imports from 78 percent to zero over 10 years and for wines and spirits, from around 50 percent, over seven years. EU companies would also be able to bid for Vietnamese public contracts.

Vietnam, backed by robust exports and foreign investment, has already signed around a dozen free trade pacts to scrap, or cut, taxes on several imports and exports. The EU is Vietnam’s second-largest export market after the United States, with key exports including garment and footwear products. The EVFTA is the EU’s first comprehensive open markets deals with a developing Asian country.