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EU, Vietnam set to sign trade and investment agreements on Sunday
The Council of Ministers on Tuesday approved the EU-Vietnam trade and investment agreements, paving the way for their signature and conclusion. EU Commissioner for Trade Cecilia Malmström and Romanian Minister for Business, Trade and Entrepreneurship Ștefan-Radu Oprea will sign the agreement on the EU’s behalf in Hanoi.“The agreements are set to bring unprecedented benefits for European and Vietnamese companies, consumers and workers, while promoting respect for labor rights, environmental protection and the fight against climate change under the Paris Agreement,” the European Commission said in a press release.President of the European Commission Jean-Claude Juncker said: “I welcome the decision taken today by EU Member States. After Singapore, the agreements with Vietnam are the second to have been concluded between the EU and a Southeast Asian country, and represent stepping stones to a greater engagement between Europe and the region. It is also a political statement by two partners and friends standing together for open, fair and rules-based trade.”
Commissioner for Trade Cecilia Malmström said: “I am very pleased to see that Member States have given a green light to our trade and investment agreements with Vietnam. Vietnam is a vibrant and promising market of more than 95 million consumers and both sides have much to gain from stronger trade relations. Beyond the clear economic benefits, this deal also aims to strengthen respect for human rights as well as protecting the environment and workers’ rights.
I welcome Vietnam’s engagement in the process so far – their recent ratification of the International Labor Organization Convention on collective bargaining is an excellent example of how trade agreements can encourage higher standards.”
The EU-Vietnam Free Trade Agreement will provide a big push for Vietnamese exports and open up market access to the 28-nation bloc, Minister of Industry and Trade Tran Tuan Anh told reporters on Tuesday.
Vietnamese Prime Minister Nguyen Xuan Phuc has travelled to a number of European countries to accelerate the signature of the agreements. Recently, Vietnamese ministers of labor and trade travelled to Brussels to push for the signing of the two agreements.
The trade agreement will eliminate nearly all customs duties on goods traded between the two sides in a progressive way, with over 99% of tariff lines to be eliminated for Vietnamese exports to 28 member countries within seven years from the enforcement.
The agreement also contains specific provisions to remove technical obstacles, such as those in the car sector, and will ensure that 169 traditional European food and drink products recognized as Geographical Indications are protected in Vietnam. Thanks to the agreement, EU companies will also be able to participate in bids for procurement tenders in Vietnam on an equal footing with domestic companies.
After being signed by the EU and Vietnam, the agreements will be presented to the European Parliament for consent. Once the European Parliament has given its consent, the trade agreement can be officially concluded by the Council and enter into force, while the investment protection agreement will first need to be ratified by Member States according to their respective internal procedures.
Vietnam is the EU’s second largest trading partner in the ASEAN region after Singapore, with trade worth EUR49.3 billion for goods and over EUR3 billion for services.