FTA with Japan comes as boon for textile & garment exporters

31 Dec '08

2 min read

A free trade agreement which was signed last week with Japan is expected to come as a boon to Vietnamese exporters in these difficult times. At a press conference to announce the pact, Phan Rue, head of the Vietnamese delegation at the talks said that this agreement will offer both countries opportunities to increase their bi-lateral trade.

With the lowering of tariffs, it will increase opportunities for the textile and garment industry to increase the trade with Japan, added, Phan Rue. Vietnam is expected to get duty free access for 7,264 items out of the 9,111 products, the country ships to Japan. Japan ranks among the top three countries in shipments of textiles and apparels from Vietnam.

The Free Trade Agreement was signed by Industry and Trade Minister Vu Huy Hoang and Foreign Minister of Japan, Hirofumi Nakasone in Tokyo. It would come into effect as early as next year after the two countries complete necessary procedures. The pact also promises to cut back on as many as 92 percent of services and goods traded between the two countries.

The two sides began discussing on the free trade agreement in January 2007. Exports from Vietnam to Japan in 2007 touched US $6.14 billion while imports from Japan matched with nearly an equivalent amount of $6.12 billion. With the signing of the agreement, bilateral trade is projected to reach a very high figure in the next few years.

Fibre2fashion News Desk - India

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