Japan, Vietnam Reach Basic Agreement for EPA

Japanese government announced on Monday it and Vietnam reached basic agreement for Economic Partnership Agreement (EPA). The countries remove the tariff for certain trading products in 10 years, which represents around 92% in value. The steel trade becomes trade free for around 82% products in the value in 10 years and for around 91% in 15 years. The countries keep 0% tariff for hot rolled flat steel trade and removes the tariff in 10 years. They reduce the 3-7% tariff for cold rolled flat steel, reduce the tariff to 5% or less in 11th year and remove the tariff in 16th year. They reduce the tariff for galvanizing steel in 10 years from 5-12% now and remove the tariff for stainless, alloy steel and steel pipe.Japan exports annual 546 billion yen of products to Vietnam including 39.9 billion yen of steel related products. The steel trade with 0-35% tariff will be tariff free for around 91% products in the value in 15 years. The EPA is aggressive more than agreements between Association of Southeast Asian Nations-South Korea, which reduces the tariff to 5% by 2012, and ASEAN-China, which remove tariff for certain products by 2018.