EVFTA is approved by the EU Parliament: a new chapter for the international trade relations for Vietnam and EU members
“The EU-Vietnam trade agreement, the most modern and ambitious agreement ever concluded between the EU and a developing country,” is officially approved by the European Parliament today, on February 12, 2020!
Congratulations! It is good news for both parties.
Vietnam and the EU are long-standing trading partners. Vietnam is the EU’s second-largest trading partner in ASEAN members. Meanwhile, 24 EU member states have invested in Vietnam, and EU investments are active in 52 out of the 63 provinces in Vietnam and most prominent in manufacturing, electricity, and real estate industries.
So, what does the European Union Vietnam Free Trade Agreement (EVFTA) and the EU-Vietnam Investment Protection Agreement (EVIPA) mean to both parties? Here are the main elements agreed in the trade deal:
Removal of almost all customs duties in the next 10 years and non-tariff barriers for:
▶️Goods:
▪️ Machinery, cars, chemicals, agricultural products, wine as main export products from EU
▪️ Telecommunications equipment, clothing, and food products as essential products imported from Vietnam
More about Vietnam’s top high growth import-export industries here
▶️Services: Accessibility to banking, insurance, maritime, transport and postal
▶️Geographical indications: emblematic products will have protection in the EU and Vietnam
▶️Public procurement: open and transparent bid for EU firms with state-owned enterprises, ministries, and cities
The agreement also aims to protect the environment and sustain the social progress in Vietnam. It includes intellectual property rights, investment liberalization, sustainable development, and labor rights. “The trade deal can be suspended if there are human right breaches.”
Now, we are waiting for the ratification and formal notification to all related parties that the procedures are closed. The agreements can enter into force, which is expected in May 2020.
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Approval of EU-Vietnam Trade Agreements – ShineBridge
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