By Keith Nuthall
Details have been released explaining how the EU will open
up its markets to rare earths and other minerals from Vietnam
under a trade deal struck in August 2015, despite concerns the
country is a conduit for smuggled raw materials from southern
China.
The agreement, which was made public on 1 February,
indicates tariffs will be scrapped on industrial minerals
traded between Vietnam and the EU. When the deal was initiated
last year, experts warned IM that opening the
EU to Vietnamese rare earths could create a route for
re-exported, illegally produced minerals smuggled into Vietnam
from China.
The text confirms that EU-Vietnam rare earth trades will be
liberalised. Once the agreement comes into force –
which could happen next year – the EU will lift 3.2%
duties on Vietnam-sourced compounds of yttrium, scandium and
cerium. Further, 5.5% duties on strontium and barium will be
phased out over four years.
Tax on denatured salt for industrial purposes will be
reduced from the current €1.70/tonne ($1.86/tonne*) and
salt for human consumption will see a reduction from the
present €2.60/tonne rate.
Bricks and ceramics with significant alumina content will
have their respective 2% and 5% duties cancelled, while a 7% EU
levy on Vietnamese unwrought antimony will be abolished once
the deal comes into force, along with a 5% export tax applied
in the country of origin.
Vietnam has promised to scrap a range of other export duties
it uses to restrict exports of minerals it has preferred be
made available to domestic manufacturers. The move could
encourage exports of Vietnamese feldspar to the EU, which is
currently subject to a 10% export duty. This will be phased out
over the next 11-16 years, depending on factors such as calcium
fluoride content.
The deal is also geared towards supporting
Vietnam’s own manufacturing needs as an emerging
economy. The publish text details an agreement to scrap
20% and 5% duties on lithium imports from the EU within six
years of the deal becoming law. Duties of 3% on clays,
including andalusite, kyanite, sillimanite, mullite and
chamotte will further be removed, along with a 3% tax on barite
(barytes) and pumice.
Incumbent 6% duties on imports of EU-sourced
superphosphates, calcined phosphatic fertilisers and mineral or
chemical fertilisers containing nitrogen, phosphorus and
potassium, will be phased out over eight years. Commenting on
the terms of the deal, EU trade commissioner Cecilia
Malmström, said that once ratified, "the agreement will
unlock a market with huge potential for EU firms."
"Vietnam is a fast-growing economy of more than 90m
consumers with a growing middle class and a young and dynamic
workforce," she added.
*Conversion made February 2016