Trade Agreement With Vietnam
The free trade negotiations were officially concluded in Brussels in December 2015. The signing has yet to take place for the free trade agreement to enter into force. The legal review of the negotiated text is under way and is accompanied by a translation into the Vietnamese language and the official languages of the EU. The European Commission will then present a proposal for approval of the agreement to EU heads of state and government to the Council of Ministers. After the green light from the Heads of State and Government, the free trade agreement will be sent to the European Parliament (EP) to launch the ratification procedure. Currently, the text is expected to be sent to the EP for approval in the second half of 2018. It took more than eight years and a dozen rounds of dialogue for both sides to negotiate the EVFTA. Nicolas Audier, President of EuroCham in Vietnam, welcomed the results of the vote: “The EVFTA is now more important than ever, as trade wars and a global pandemic disrupt normal affairs on an unprecedented scale. Free, fair and rules-based trade is the best roadmap for economic growth, and Vietnam will now have privileged access to an EU consumer market of around 500 million people who want to do business and invest with a strong, secure and prosperous nation in the heart of Asia. The APC regulates the overall relationship between the EU and Vietnam. It is based on common interests and principles such as equality, mutual respect, the rule of law and human rights. It broadens the scope of cooperation in areas such as trade, the environment, energy, science and technology, good governance, tourism, culture, migration, the fight against terrorism and the fight against corruption and organised crime. It also allows Vietnam and the EU to further strengthen cooperation on global and regional challenges, including climate change, terrorism and the non-proliferation of weapons of mass destruction.
This agreement will enable EU exporters and investors to access a fast-growing market of 90 million people and consolidate their presence in one of the world`s most dynamic regions. Overall, ASEAN is the EU`s third largest trading partner outside Europe, after the United States and China. Ensuring better access for EU exporters to the dynamic ASEAN market is an EU priority. Negotiations for a trade and investment agreement between the region and ASEAN began in 2007 and were interrupted by mutual agreement in 2009 to relax a bilateral negotiating format. These bilateral trade and investment agreements were designed as building blocks for a future agreement between the regions. Vietnam, which became the 150th member of the WTO in 2007, promised, after its accession, to fully comply with WTO agreements on customs assessment, technical barriers to trade (OTC) and health and plant health measures (SPS). The United States and Vietnam concluded a bilateral trade agreement (BTA) in 2000 that came into force in 2001. The agreement allows EU companies to award public contracts, among others, with Vietnamese ministries, including for infrastructure such as roads and ports, major state-owned enterprises such as the electricity supplier and the national rail operator, public hospitals and the two largest Vietnamese cities of Hanoi and ho Chi Min.