EVFTA opportunities for German meat products

Germany has a developed agriculture sector with more than 80% of its territory used for agricultural and forestry purposes. Therefore, Germany is also known as a leading country in the production and export of agricultural products, including meats such as pork and beef... In 2019, Germany exported about 363 thousand tons of beef and 2.8 million tons of pork to about 100 countries around the world (german-meat.org). In addition, Germany also has a meat processing industry with hundreds of years of experience in the production of sausages, frozen meat, ham, etc.

On the Vietnamese side, the demand for pork and beef is increasing, while the domestic meat production sometimes does not meet the demand. Moreover, Vietnamese consumers have increased the use of frozen and processed meat products. Therefore, the amount of beef and pork imported into Vietnam in recent years has grown significantly. According to statistics from the Department of Livestock Production, Vietnam's total import turnover of bovine animals in 2020 reached nearly USD 414.4 million, increased by 28.8% compared to 2019.

Therefore, the EVFTA will help promote the export of German meat products to the Vietnamese market thanks to the following benefits:

Benefits from tariff reductions:

Vietnam currently maintains relatively high MFN tariffs on pork, beef and meat products. Specifically, the average MFN tariff in 2020 for fresh/chilled/frozen bovine animals was 14-30%, for fresh/chilled/frozen pork was 15-25%, and for salt/smoked meats was 10-20%, and for sausages and similar meat products was 22%. With the implementation of the EVFTA, German meat products imported into Vietnam shall be liberalized with a specific schedule as follows: Eliminating tariffs for bovine animals after 3 years, for pork after 7-9 years, for salt/smoked meats after 7-9 years, and for sausage after 10 years.

Benefits from protection of Geographical Indication

Of the 12 geographical indications of Germany that are automatically protected under the EVFTA when entering the Vietnamese market, there are 02 meat products: Nürnberger Bratwürste Sausage and Schwarzwälder Schinken Ham. These products will have advantages when approaching the Vietnamese market because they are protected, known and increase brand value..

EVFTA full text for more information: https://wtocenter.vn/chuyen-de/12778-eu-vietnam-trade-and-investment-agreements 

Source: "Business Handbook: Exploiting the EVFTA  to import and export goods between Vietnam and Germany" - Center for WTO and International Trade