EU and Vietnam have agreed on a free trade agreement (FTA) that will remove almost all tariffs on goods traded between the two economies and enhance investment and market access.
"We have a deal. This finely balanced agreement will boost trade with one of Asia’s most dynamic economies. It sets a new, better and modern model for Free Trade Agreements between the EU and developing countries, and establishes a good standard for the trade relationship between the EU and South East Asia as a whole. Both sides have worked extremely hard in the past few months to achieve this breakthrough" EU Trade Commissioner Cecilia Malmström says.
99 percent of the tariffs will be removed, with a transition time for some products. Besides eliminating tariffs, the agreement will also create new market access opportunities in services and investment as well as in telecommunications, transport, and postal and courier services.
The FTA also includes commitments which will support the conservation and sustainable management of natural resources (including wildlife, forestry, and fisheries). Special attention is devoted to areas such as CSR (Corporate Social Responsibility) and fair and ethical trading schemes.
The trade between EU and Vietnam last year amounted to a total of 28.2 billion euros, making EU Vietnam’s second largest trading partner after China. The goods traded from Vietnam to EU are mainly electronics and textiles. EU exports high tech products, cars and medicine. In the last years EU has traded more with Vietnam than for example with Indonesia.
During the autumn, the negotiating teams will continue the process, settle some remaining technical issues and finalise the legal text. Once finalised, the agreement will need to be approved by the European Council and the European Parliament, and be ratified by the member states.
Given the cooperation established with Vietnam over many years and strengthened by this negotiating process, it is expected that this process could be finalised in a few months' time and certainly before the end of the year. This FTA will most certainly increase trade and cooperation between the EU and Vietnam.
Source: http://www.swedenabroad.com/
Key words: EU, Vietnam, have reached, an agreement, in principle, the FTA negotiations
