Research on vietnam’s lychees export to the european union(eu) in the context of evfta (chính sách thương mại quốc tế)

Abstract: The EVFTA Agreement, a free trade agreement between the European Union and Vietnam, has officially taken effect since August 2020, having a strong impact on Vietnams import and export turnover, especially for agricultural products. products symbolic items of the country. One of the famous and successful agricultural products after the EVFTA is lychee, a particularly delicious fruit that has impressed markets on all continents. This study will refer to the lychee export market to European countries under the impact of the EVFTA Agreement, especially in the period of 10 years 20122022, the qualities, opportunities, and challenges and offer some practical solutions to help the lychee export industry. better development. Data is collected from a large source of information from articles, research articles, articles, forums on this topic. When analyzing data, the main method is qualitative research. In general, the lychee export industry has made great strides, going beyond traditional markets like China to penetrate more demanding markets in Europe. However, the standards from partner countries are very strict, requiring the cultivation and packaging process to be improved, strictly managed and maintained for a long time. To promote development requires government support in trade policies to protect producers and consumers as well as litchi farmers. Besides, packaging and delivery must also be strictly implemented between farmers and exporting companies. Keywords: EVFTA, EU, Vietnam, Vietnam’s lychees

RESEARCH ON VIETNAM’S LYCHEES EXPORT TO THE EUROPEAN UNION(EU) IN THE CONTEXT OF EVFTA

FOREIGN TRADE UNIVERSITY

FACULTY OF FINANCE & BANKING

Abstract: The EVFTA1 Agreement, a free trade agreement between theEuropean Union and Vietnam, has officially taken effect since August 2020,having a strong impact on Vietnam's import and export turnover, especially foragricultural products products - symbolic items of the country One of thefamous and successful agricultural products after the EVFTA is lychee, aparticularly delicious fruit that has impressed markets on all continents Thisstudy will refer to the lychee export market to European countries under theimpact of the EVFTA Agreement, especially in the period of 10 years 2012-

2022, the qualities, opportunities, and challenges and offer some practicalsolutions to help the lychee export industry better development Data iscollected from a large source of information from articles, research articles,articles, forums on this topic When analyzing data, the main method isqualitative research In general, the lychee export industry has made greatstrides, going beyond traditional markets like China to penetrate moredemanding markets in Europe However, the standards from partner countriesare very strict, requiring the cultivation and packaging process to be improved,strictly managed and maintained for a long time To promote developmentrequires government support in trade policies to protect producers andconsumers as well as litchi farmers Besides, packaging and delivery must also

be strictly implemented between farmers and exporting companies

Keywords: EVFTA, EU, Vietnam, Vietnam’s lychees, export

1 Introduction

1.1 Reason for choosing topic

Vietnam has long been known for its luscious lychees, a popular fruit that is enjoyed notonly in its home country but around the world In recent years, Vietnam has emerged as amajor player in the global lychee market, with the country's export volumes steadilygrowing year by year With the recent signing of the European Union-Vietnam Free TradeAgreement (EVFTA), Vietnamese lychee exporters are poised to take advantage of newopportunities to expand their reach into the EU market This agreement marks a significantmilestone for Vietnam's lychee industry, as it opens up new avenues for growth anddevelopment in an increasingly competitive global marketplace In this context, it isimportant to explore the potential benefits and challenges facing Vietnam's lychee exporters

as they navigate the complex landscape of international trade and global supply chains

The European Union (EU) has long been a highly attractive market for agricultural exports,and with the recent ratification of the European Union-Vietnam Free Trade Agreement(EVFTA) in August 2020, a new era of opportunity has arisen for Vietnam's lycheeindustry Known for its succulent and aromatic lychees, Vietnam has cultivated a strongreputation for producing high-quality, delicious fruits, which have garnered significant

1 EVFTA: EU-Vietnam Free Trade Agreement

demand in both domestic and international markets As a result, Vietnam's lychee exportsector has experienced substantial growth in recent years, with the potential for even greaterexpansion into the European market under the auspices of the EVFTA This comprehensivetrade agreement, which aims to eliminate tariffs and non-tariff barriers, will undoubtedlyprovide Vietnamese lychee exporters with a competitive edge and facilitate access to awider consumer base within the EU However, it is important to consider the variouschallenges that this new context may present, such as navigating complex regulatoryframeworks, maintaining stringent quality standards, and addressing environmental andsocial concerns In light of these factors, this discussion seeks to analyze the potentialimplications and opportunities for Vietnam's lychee industry as it embarks on this excitingnew chapter of exportation to the EU under the EVFTA.

In the scope of this research, the author team will analyze lychee export during the periodbefore and after the EVFTA agreement was signed (10 years from 2012 to 2022), evaluatingchallenges, predicting near future prospects, then some practical solutions for improvementand further promotion in international trade

1.2 Objective of the study

To provide a more complete picture of the impact of the EVFTA on the export turnover ofVietnamese lychee and the Vietnam agriculture sector in general, this research is focused onanalyzing the opportunities and challenges that the Vietnam's lychee export faces under theEVFTA It also investigates the constraints and problems of the current context and suggestsways to improve the promotion of Vietnam's lychee exports to the EU There are 8 parts tothis, which are arranged as follows:

According to Maliszewska et al (2019), the EVFTA2 Agreement will have a great impact onVietnam, even surpassing the Comprehensive and Progressive Agreement for Trans-Pacific

2 EVFTA: EU-Vietnam Free Trade Agreement

Partnership (CPTPP)3 Although Vietnam's agricultural product exports to the EU are 5.4%lower than in 2019 due to the impact of the COVID-19 pandemic, exports to the EU ingeneral tend to direction improvement, reflected in the growth rate of some items shallowproduction into the EU increased markedly.According to data from the Ministry of Industryand Trade, in August 2020, the export turnover of agricultural products to the EU increased

by 11.9% compared to July 2020 In September 2020, the value of agricultural exports to the

EU increased by 35% compared to August 2020 On average, in the period from August

2020 to June 2021, the value of agricultural exports to the EU market has grown by 10% toreach 486 million USD.2021 is also an important milestone for Vietnamese fruit andvegetable products, such as lychee, which has been introduced into a series of supermarketfood chains in the Netherlands, Belgium, France and Germany.(Customs Newspaper 2021)

Two famous Vietnamese lychees come from two provinces, Bac Giang and Hai Duong Thefigures for 2022 are published in the forum "Vietnamese Lychees go global - Vietnam'slychee reaches out to the world organized by the Ministry of Information andCommunications in conjunction with the two provinces of Bac Giang and Hai Duong, theoutput in Bac Giang is about 180000 tons, Hai Duong with a smaller area, the output isexpected to be 60000 tons So far, Duong lychee has been exported to over 20 countries,including some markets such as Japan, the US, and Europe, accounting for about 10% of theprovince's export output, 40% of exports to the domestic market traditions such as China,Laos, Cambodia Bac Giang province's export output accounts for about 40% to marketssuch as Japan, the United States, and the EU Lychee is produced in the direction ofVietGap, GlobalGAP, increasing standards The Chinese market is a market that accountsfor a large proportion of lychee export turnover, but since the Covid-19 pandemic, China hastaken measures to prevent and control the epidemic, causing certain difficulties for exportactivities There is a phenomenon of stopping customs clearance of many agriculturalproducts, so finding and developing new markets is essential, ensuring the stability andgrowth of lychee exports, and keeping the reputation of quality of Vietnamese Lychees

To summarize, lychee export in Vietnam has an optimistic prospect Lychee's exportpotential

in international trade and several suggestions are also included in existing studies However,there is a scarcity of research that shows the condition of lychee export in a long period,which, owing to the scatterings of data Besides, the solutions suggested are relatively

theoretical Hence, this report would combine the findings of other studies while selectingfor

the best, with the addition of accumulated trade-related knowledge to give a more overalllook;

as well as more practical suggestions for development

3 Methodology

3.1 Type of research

3 CPTPP: The Comprehensive and Progressive Agreement for Trans-Pacific Partnership

In this paper, we mainly apply the Qualitative method Qualitative research is a researchmethod that collects non-numerical data Typically, it goes beyond the information thatquantitative research provides because it is used to gain an understanding of underlyingreasons, opinions, and motivations The strengths, weaknesses and challenge andopportunity are included in this research through SWOT model, which can be supportive forlater on this same topic. 

3.2 Data collecting and research

A majority of data are collected via articles, reports, previous research and paper fromverified sources Afterward, the data was sorted and analyzed to select out the core idea.Qualitative research is open to non-numerical data, so several speeches and opinions werecited and analyzed The research team may encounter two main obstacles while processingthese types of content The first one is that they are not as uniformed as a survey with aquestionnaire or a direct interview with the farmers and exporting agencies, which makes itharder to see the general trend or view The second one is the authors’ subjective point ofview as we may have false assumptions due to lack of field experience Nevertheless, thenew data that was reduced from the primary source is guaranteed to provide an insightfuland compact view

4.Theoretical basis

4.1 EVFTA

Participation in new generation Free Trade Agreements (FTAs) has created numerousopportunities for Vietnamese agricultural products to enter potential markets Following theimplementation of the EVFTA agreement in August 2020, the EU is now Vietnam's thirdlargest trading partner and a rapidly expanding agricultural import market

EVFTA stands for European-Vietnam Free Trade Agreement, is an agreement signed among

27 member countries of the European Union and Vietnam EVFTA, along with Pacific

Trans-Partnership Agreement (TPP) are the two FTAs with the widest scope of commitments andthe highest level of commitment of Vietnam so far On December 1, 2015, EVFTAofficially

ended negotiations and on February 1, 2016, the text of the agreement was announced OnJune 26, 2018, EVFTA was split into two agreements, one is the Trade Agreement(EVFTA),

and the other is the Investment Protection Agreement (EVIPA); at the same time officiallyending the legal review process for the EVFTA Agreement and the two Agreements weresigned on June 30, 2019

4.2 The concept of EVFTA

The EVFTA is a comprehensive, high-quality agreement that balances benefits for bothVietnam and the EU, thereby contributing to the bilateral relationship's strengthening in astrategic, comprehensive, and long-term direction The EVFTA helps EU businesses getready

for major shifts in the global supply chain in the long run For instance, the rule of originunder the EVFTA may encourage Vietnam to reorganize its textile production industry toreduce its heavy reliance on Chinese raw materials (58 percent), and benefit more from theagreement Regarding the regionalization of supply chains, the EVFTA and the other freetrade agreements that the EU has signed with major Asian economies, namely Japan, theRoK,

and Singapore, together give the EU more institutional flexibility to participate in the

increasingly integrated intra-Asian market In the textile sector, the EU’s fully liberalizedexports to Vietnam under the EVFTA give it an advantageous position in exporting luxuryand technical textile materials to meet the fast-growing Asian demand.

The EVFTA should create more investment opportunities in the Vietnamese logistics sector,which matches Vietnam’s goal to become a regional logistics hub by 2025 The FTA and theEU-Vietnam Investment Protection Agreement allow the EU to offer various maritimetransportation services, including shipping agent services, cargo/container handling, storage,and warehousing.The EU-Vietnam Free Trade Agreement is expected to boost Vietnameseexports to the EU by 42.7 percent by 2025, according to Vietnam’s Ministry of Planning andInvestment The European Commission predicts a 29 percent increase in EU exports toVietnam by 2035

In terms of market opening, this Agreement will provide significant opportunities for theagricultural sector by gradually reducing the tax on a variety of agricultural productsexported

to the EU to 0% over a short time frame Specifically, once the Agreement takes effect,70.3%

of Vietnam's export turnover to the EU will be tax-free After seven years, 99.7% ofVietnam's

export turnover will be tax-free; the remaining items will be imported into the EU under atariff quota with a 0% import tax.There are also several agricultural products whose tariffswill be completely removed after 3-5 years

According to Prime Minister of Agriculture and Rural Development Nguyen Xuan Cuong,no

other non-ratified FTA has received as much attention and drastic implementation as theEVFTA Other agreements used to be signed, completed, and converted automatically, buttimes have changed, and careful planning is now required The agricultural sector, in

particular, benefits greatly from the EVFTA, with most tax groups reduced to 0% in theshortest route Making full use of the benefits from the EVFTA, Vietnam has exported thefirst batch of Thieu lychees to Europe on June 7th, 2021 and many more batches have beenexported since then. 

4.3 Demand for lychees in Europe

Figure 1 EU imports of lychee, tamarinds, cashew apples, jackfruit,

passion fruit, saphodilla plums, carambola, and pitahya

Every year, Europe imports about 20,000 to 25,000 tonnes of lychees Many of themcome by sea through Zeebrugge port, which makes Belgium a key player in thedistribution and re-export of lychees to France But in 2017, France got more directsupply and Belgium imported only 7,000 tonnes, compared to 14,000 tonnes in 2016.This data indicates a shift in logistics and a more direct trade with France For exporters,

it is crucial to understand that France drives most of the demand for lychees in Europe,and that there is also a market for lychees that are shipped by air

Figure 2 Main European importers of lychees, tamarinds, cashew apples, jackfruit, saphodila plums, passion fruit, carambola, and

pitchaya from non-EU countries

The demand for lychee in the European Union is growing, as Europeanconsumers have a growing interest in new flavours and fruit varieties.The import value of exotics such as fresh lychees, passion fruit,carambola and pitahaya (HS 08109020) increased 40% over the pastfive years to 142 million euros in 2019 Other exotic fruit (HS08109075), mainly pomegranates, experienced a growth of 21% andreached a total value of 202 million euros in 2019

According to the chart above, it can be seen that Netherlands andGermany are the two countries with the largest import volume oflychees (~13 thousand tons) in the 4-year period from 2013 to 2017,before the EVFTA agreement was signed Along with that, the EU alsohas countries such as France and Germany that start importing thistype of fruit The origin of lychee imports of the EU in this period ismostly from Madagascar and China, therefore, by taking advantage ofthe benefits in this agreement and the proposals that we make below,Vietnam will be able to compete with the current lychee importingcountries for the EU, at the same time, create a solid foundation forthe future of exporting lychees to the world of our country

5.Discussion

5.1 Overview of Vietnam’s lychee export from 2012 to 2022

5.1.1 Current status of lychee consumption:

Domestic consumption

Lychee is one of the popular fruits and brings high economic value in our country It iswidely grown in the Northern provinces, especially Hai Duong and  Bac Giang withThieu’s lychee. 

Figure 3 The main area for growing lychees

To avoid becoming reliant on a single market, small and local businesses are aiming toopen more consumption channels, promote the domestic market, and focus on moderndistribution channels on e-commerce platforms Lychee trading activities are carried out

by enterprises, establishments that purchase and pack lychees through distributionchannels and focal points in cities such as Hanoi's Southern Wholesale Market BusinessCenter, Long Bien wholesale market, and Ho Chi Minh City's wholesale marketspecializing in fruit and vegetable distribution business It is also available in themajority of domestic supermarket chains, including Hanoi Trading Company, SaigonTrading Corporation, However, due to the abundance of fruits in the Vietnamesemarket, lychee faces stiff competition in the domestic market

Long-term weather-saving climate change has impacted lychee growth and development

in 2022, causing litchi fruit to ripen faster than usual in a period of 15-20 days.However, the province directed all levels and branches to do well in project work,specifically calculating the output and time frame for harvesting litchi teas; marketforecasting work was soon studied, organized, and evaluated thoroughly andmethodically; The Covid-19 epidemic management is interested in researching why andwhy it does not occur in the community, ensuring disease safety from production totransformation to consumption; the application of science and technology in the farmingprocess is interested in promoting product quality improvement, with the consistent andtransparent goal of achieving exceptional quality

Despite facing difficulties and significant pressure in exporting, lychee prices remainedstable in the middle of the season, with the average lychee selling price for the entire

season estimated at 22,100 VND/kg (an increase of 2,300 VND/kg compared to 2021).Total revenue from lychee and ancillary services is estimated at 6,785 billion(approximately the revenue of recent years; 6,830 billion dong in 2021, 6,821 billiondong in 2021), of which revenue from lychee reached approximately VND 4,411 billion(VND 137 billion higher than 2021), and revenue from ancillary services and activitiesreached approximately VND 2,374 billion (VND 173 billion lower than 2021 due tofabric output) In 2022, the shortage is more than 15,000 tons lower than in 2021).

Export consumption

Lychee has been commercially available in over 30 countries and regions and isexported to fastidious markets such as the United States, Italy, Japan, and Singapore, aswell as some new markets such as New Zealand, Australia, and Canada, in addition tothe traditional export markets of Thailand, Indonesia, Malaysia, the Netherlands, andTaiwan China, the United States, Australia, Japan, the Republic of Korea (RoK), theMiddle East, and a few Southeast Asian countries were among the major importers, withthe Japanese and European markets expanding in terms of scale and volume withimpressive export volume and growth rates containers will be exported by sea.Furthermore, units must overcome the problem of Covid 19 virus on lychee andcontainers The lychee market is expanding because people in emerging and developingcountries all over the world want more fresh food.Favorable government initiatives andrising trade from major producers drive the market's expansion Jam, juice concentrates,canned lychee, dried lychee, and other products are also in high demand Vietnam signed

an agreement with lychee farmers to export lychees to Japan at the end of 2019

Figure 4 Export consumption of Vietnam's lychee

Natural disasters, animal and plant diseases, and human diseases pose significantrequirements and challenges for the export of agricultural products in general, andlychee in particular, in the context of new-generation free trade agreements signed andimplemented; importing countries introduce increasingly stringent regulations on foodsafety and animal and plant quarantine; and natural disasters, animal and plant diseases,and human diseases pose significant requirements and challenges for the export of

agricultural products in general, and lychee in particular As a result, businesses improvetheir capacity and awareness of market technical regulations and SPS requirements; shiftthe approach to food safety from final product safety inspection to monitoring at everystage of the production chain; According to the Ministry of Agriculture and RuralDevelopment, in 2021, total lychee output exceeded 199,500 tonnes Of this volume,over 61,000 tonnes were early-ripening lychees and the rest were from the main crop. 

5.1.2 Export revenue

Lychee has long been a staple of Vietnamese cuisine, and it unquestionably providesnumerous benefits to the Vietnamese economy It is an important export product for thefruit and vegetable industry Although it contributes significantly to the Vietnameseeconomy in terms of value and income, prices and earnings fluctuate from time to time

It is expected to grow and develop quickly in the coming years Unfortunately, due toCovid-19, demand for lychee has decreased slightly

2021 and the first two months of 2022 is such a tough period of time when we had toface up with the pandemic of COVID-19 COVID-19 has had a significant impact onlychee exports to China and other countries When the road system became congested,many units and enterprises diverted to the natural sea route, raising the cost of exportingand reducing exporters' and lychee farmers' profits As a result, the Ministry must haveand develop a plan to select the official method of exporting goods via sea and rail.Despite facing export difficulties, the 2022 lychee crop still enjoyed high prices.Furthermore, the Ministry of Industry and Trade has directed and supported Hai Duongand Bac Giang provinces in the process of popularizing, promoting, and connectinglychee consumption in collaboration with the Ministry of Agriculture and RuralDevelopment and specialized agencies

Lychee has a wide range of prices due to differences in types, markets, and quality.Lychee export prices are stable at a high level, ranging from 30-55,000 VND/kg, theselling price of lychee in some foreign markets such as Japan, the United States,Australia, and some EU countries (France, Germany, Italy, Belgium, Netherlands ) has

a high selling price and is suitable for consumption, with prices ranging from 350 to550,000 VND/kg depending on the market Lychee is highly valued by consumers inpotential and demanding markets for its high quality and well-received

Figure 5 Vietnam's lychee export revenue in the period of 2018 - 2022

Last year's total lychee output surpassed 199,500 tonnes Over 61,000 tonnes of this totalwere early-ripening lychees, with the remainder coming from the main crop Bac Giang,Vietnam (VNA) – According to the provincial People's Committee, the northernprovince of Bac Giang, dubbed Vietnam's "kingdom of lychee," earned nearly 6.8trillion VND (290.5 million USD) from lychee sales and support services in 2022.Lychee can be sorted into 3 main types: Sour lychee group, sweet lychee group andmedium sized lychee group. 

Group Description

Sour lychee Tall tree, big leaves, big leaf blade When flowering, the

inflorescence from stalk to flower bud is covered with black hairs The fruit usually ripens in April and early May When ripe, the skin isbright red, the skin is thick, the seeds are large, the pulp is thin and very sour, the pulp rate accounts for 60-65% of the fruit weight This type of lychee is mainly grown in midland and mountainous

provinces such as Phu Tho, Ha Tay, Tuyen Quang, Quang Ninh Sweet lychee The tree has a raspberry-shaped canopy 10-15m high, small leaves,

long glossy leaf blades, and good drought tolerance When flowering,the inflorescences are not covered with black hairs but are yellow-white, in the nine main seasons (June) The fruit skin is thin, the seedsare small, the pulp is thick, the edible rate is 70-80%, the pulp is morefragrant and sweeter than the two groups of litchi above

Medium

sized lychee Average in size, with a canopy that is usually 5-7m wide, egg-shaped leaves, large leaves, strong growth, and inflorescences that lack black

hairs, but flowers that grow sparser than canvas The fruit matures later than sour litchi but earlier than Thieu’s lychee

Table 1 Types of Vietnamese lychee 5.1.3 Non-tarriff barriers

Tax policy: Lychee is regulated under HS code: 08109020, is an item with no export tax,

and no VAT on exports

Import of fresh lychees from third countries to the EU must conform to generalmarketing standards for Fresh Fruits and Vegetables, and Vietnam is not an exception

We must adhere to the following guidelines:

 Quality

The general marketing standards for fresh fruit and vegetables contain minimum qualityrequirements Products should be:

 Intact, clean and sound;

 (Practically) free from pests, damage, abnormal external moisture, internalbrowning;

 In a condition to withstand transport and handling

These requirements are consistent with the CODEX Alimentarius standard for Litchi.Lychees must be sufficiently developed and mature to withstand transportation andarrive in good condition at their destination

Lychees are divided into three quality categories:

 "Extra Class" products are of the highest quality Products in this categorymust have the typical shape, development, and coloration of the variety orvarietal type Extra Class produce is defect-free, with the exception of veryminor superficial flaws Slight flaws should not affect the overall appearance,quality, keeping quality, or presentation in the package

 Class I lychees are of high quality and can only have minor flaws (slightmisshaping, coloration, or skin flaws not exceeding 0.25 cm2)

 Lychees that meet the minimum requirements but do not qualify for Class I

or Extra Class can enter the EU market under the "Class II" classification.The market for Class II produce, on the other hand, is extremely limited Skin

damage, for example, is permissible in Class II lychees if it does not exceed0.5 cm2.

 Size and color

The maximum equatorial diameter of the fruit determines size according to the CODEXAlimentarius standard for Lychees

 The "Extra" Class has a minimum size of 33 mm

 Class I and II have a minimum size of 20 mm

Each package may have a maximum size range of 10 mm between fruits

Size tolerances for all classes are 10% in terms of the number or weight of lychees that

do not meet the minimum size requirements In all classes, the diameter cannot be lessthan 15 mm, and the maximum size range is 10 mm

Size is usually specified as a range in millimeters Thailand, for example, has developedagricultural standards that indicate size codes (1-3) for different varieties

Lychees can range in color from pink to red when untreated, and from pale yellow topink when fumigated with sulfur dioxide

 Packaging

Usually in 2 to 2.5kg boxes Larger boxes may also be used, especially if the produce isrepackaged in Europe Check the desired packaging with your customer Each package'scontents must be uniform, containing only lychees of the same origin, variety or varietaltype, quality, size, and color The visible part of the package's contents must berepresentative of the entire contents To ensure proper handling, shipping, andpreserving of the lychees, the containers must meet quality, hygiene, ventilation, andresistance standards Packages (or lots for produce presented in bulk) must be free of allforeign matter and odor

 Labeling

Consumer package labeling must adhere to the rules and regulations in force in theEuropean Union Regulation (EU) No 1169/2011 establishes general principles,requirements, and responsibilities governing food information, specifically foodlabeling Toxic ink or glue cannot be used on labels

Each package (non-retail package) must bear the following information, legibly andindelibly marked on the same side, and visible from the outside:

 Identification: Name and address of exporter, packer and/or dispatcher.Identification code (optional);

 The nature of the product: Name of the product if the contents are not visiblefrom the outside Name of the variety or commercial type (optional);

 Origin of product: Country of origin and (optional) district where grown ornational, regional or local place name;

 Commercial identification: class, and optionally size (code), and/or netweight;

 Traceability code;

 Official Inspection Mark (optional)

Furthermore, if the produce is not visible from the outside, each retail package must belabeled with the name of the produce and may also be labeled with the name of thevariety or varietal type In the case of private label products, any certification logo orretailer logo may be included on the labeling if requested

5.2 Vietnam’s lychee export situation before and after EVFTA came into effect

Before EVFTA, Vietnam exported around 100,000 tonnes of fresh lychees worth morethan $30 million to China, Japan, Australia, the EU and the US Also, The EU imposed