Question: How is FTA formed?

Answer: 

In fact, there is no common, mandatory process for negotiating, signing, and implementing FTAs. Members specifically agree with each other on the process, procedures, and conditions for negotiating, signing, and implementing that FTA. However, usually, an FTA will go through the following 5-step process:

Step 1 - Pre-feasibility study: Initial research on FTA negotiation possibilities
The result of this step is the Pre-Feasibility Study Report of each Party answering the question: Should FTA negotiations begin?

Step 2 - Negotiation: The Parties present their requests (called "Offers"), answer the partners' requests, and exchange through negotiation rounds.
Negotiation is completed when the parties agree on all contents of the FTA and jointly confirm and declare the "conclusion of negotiation".

Step 3 - Signing: The FTA document is legally reviewed by the parties and then signed.

Step 4 - Ratification: The competent authority of the member countries ratifies the FTA, which means officially accepting the binding of that FTA to them.

Step 5 - Taking effect: Members are obliged to implement commitments in the FTA and enjoy benefits from the commitments.

Center for WTO and International Trade

• What is a Free Trade Agreement (FTA)?
• What types of FTA are there?
• What contents does an FTA usually contain?
• In case Vietnam has more than one FTA with the same partner country, which FTA will be followed?