Impact Assessment of the Free Trade Agreement Between EU and Vietnam on the Economy of the Czech Republic

After the collapse of the WTO global negotiations, the EU initiative is under way to conclude bilateral free trade agreements between EU member states and third countries in order to deepen the cooperation in common foreign and trade policy. An agreement between the EU member states and Vietnam (EVFTA) should enter into force in 2018. The subject of the EVFTA agreement is not only the elimination of customs tariffs, but also the provisions on non-tariff barriers to trade, public procurement, investment, trade in services and others. The aim of the article is to assess the impact of the EVFTA on the Czech economy and the economy of the EU. The Computable General Equilibrium (CGE) model was selected as an impact estimation tool. The applied model's specification and calibration for the purposes of quantification of the EVFTA's impacts are included in this article. The results represent the quantified economic impacts of elimination of both the tariff and non-tariff barriers to trade between the Czech Republic and Vietnam.