(VNF) - According to Japan’s commitment, the average tariff rate applied for Vietnamese goods exported to Japan will gradually be reduced to 2.8% by 2018.

In return, the average tariff rate applied for Japan’s products exported to Vietnam will gradually be reduced to 7% by 2018.

In December 2008, the two countries signed Vietnam – Japan Economic Partnership Agreement. This is a comprehensive bilateral agreement that will boost trade liberalization of goods and services, economic cooperation and investment.

When the Vietnam – Japan Economic Partnership Agreement (VJEPA) comes into effect, at least 86% of agro-forestry- aquatic products and 97% of Vietnamese industrial products exported to Japan will benefit from preferential tariff rates.

One of the major parts of the Agreement focuses on economic cooperation in such areas as agriculture, industry, trade and investment, development of human resources, tourism, and transportation.

Aquatic, farm products, apparel, steel, chemicals, electronic appliances will benefit most from the commitment to trade liberalization.

As such, within the next 10 years, Vietnam and Japan will realize a tariff reduction toward a bilateral free trade area, allowing over 94.5% of Vietnam’s export revenues and over 87.6% of Japan’s exports revenues to be exempted from import tariff.

Apart from trade liberalization, investment and cooperation between the two countries will be protected.

This is an agreement on comprehensive economic partnership, not merely a free trade agreement. Therefore, not only trade of goods but also services would be liberalized.

It can be said that the Agreement will open up opportunities for businesses as well as consumers of the countries to access capital sources, modern technology, materials and goods in the most effective way.

The relationship between Vietnam and Japan has developed in various fields, especially since October 2006, when Prime Minister Nguyen Tan Dung officially visited Japan and opened a new phase of co-operation towards “strategic partnership between Vietnam and Japan for peace and prosperity in Asia"./.

( Complied by VNF )