HANOI: The European Free Trade Association (EFTA) said on Thursday (July 2) that it had brought free trade negotiations with Vietnam to a successful close, giving its four member states another way to widen commercial ties during a period of global tariff tensions.
The bloc, which comprises Iceland, Liechtenstein, Norway and Switzerland, said the agreement also spans rules of origin, investment, intellectual property rights, competition, trade remedies and government procurement.
Switzerland, EFTA’s biggest economy, has faced a difficult tariff backdrop.
In August 2025, it was hit with the highest US tariffs in Europe after President Donald Trump introduced a broad package of import duties worldwide.
Talks on the EFTA-Vietnam free trade agreement began in 2012 but stalled in 2018 after 16 negotiating rounds failed to deliver sufficient progress.
The process was restarted in September 2025 and was completed after five further rounds.
EFTA said trade with Vietnam had expanded steadily over the past decade.
By 2025, two-way trade was valued at €4.8bn (US$5.5bn), excluding Swiss trade in gold, while the balance showed a €2.5bn surplus in Vietnam’s favour.
The announcement came as Swiss President Guy Parmelin was visiting North America, where he is seeking progress on an update to Switzerland’s free trade agreement with Mexico. - Reuters
