Jul. 1 – Vietnam will exempt as much as 90 percent of tax lines on goods imported from Australia, New Zealand and Association of Southeast Asian Nations (ASEAN) members this year.

By 2017, Vietnam will remove import tariffs on butter, milk and cheese. Import duties on car components will also be slashed to 5 percent by 2018. In exchange, Australia, New Zealand and other ASEAN members will also do the same to remove at least 90 percent of tax lines.

Under the Australia-ASEAN-New Zealand free trade agreement (AANZFTA), Australia and New Zealand will cancel import taxes on goods coming from the ASEAN bloc by 2020. ASEAN members will likewise cut 96 percent of tax lines on imports from Australia and New Zealand.

Vietnam has been an ASEAN member since 1995 along with Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore and Thailand. This year is Vietnam’s turn to hold the ASEAN chair.

The AANZFTA will be applicable from January 1, 2010 among Australia, Brunei, Malaysia, Myanmar, New Zealand, Singapore, the Philippines, and Vietnam.

Thailand will only apply the agreement beginning March 12, 2010 while Cambodia, Indonesia and Laos will enforce it 60 days after formal government approval.