The European Commission (EC) has decided to remove the Generalized System of Preferences (GSP) applied to Vietnam’s leather shoe exports to the European Union (EU).

The decision, announced in Hanoi on June 13, will come into effect as of January 1, 2009.

Sean Doyle, chief of the EC delegation, said that the decision demonstrates Vietnam’s success in diversifying its exports to the EU market and reducing its dependence on some key staples.

The official also said that the EU is still willing to offer Vietnam’s commodities an advantageous long-term tariff system within the negotiation framework of the EU-ASEAN Free Trade Area.

The EU has applied GSP since 1971 to assist goods from developing countries in penetrating the EU market. Accordingly, goods from the beneficiaries would enjoy low tariffs or be exempt from tariffs.

Source: VOV