(VOVworld) - Vietnam and the European Union (EU) reached an agreement in principle on their free trade agreement (FTA) Tuesday after two and a half years of intense negotiations.

Under the agreement, nearly all tariffs on goods traded between the two economies will be removed (Photo: dtinews)

 Following a telephone conversation with Vietnamese Minister of Industry and Trade Vu Huy Hoang, EU Trade Commissioner Cecilia Malmström said nearly all tariffs on goods traded between the two economies will be removed under the deal.  Malmström said the agreement will boost trade between the EU and one of Asia’s most dynamic economies and sets a new, better and more modern standard for Free Trade Agreements between the EU and developing countries and establishes a good standard for the trade relationship between the EU and South East Asia as a whole. She said she hopes the agreement will provide opportunities for companies on both sides by increasing market access for goods and services.

The negotiating teams will continue working to settle some remaining technical issues and finalize the legal text to be approved by the European Council and Parliament.