Commission presents EU-Vietnam trade and investment agreements for signature and conclusion

 

Vietnam 2018

From left to right: Mr Nguyen Xuan CUONG, Minister for Agricultural and Rural Development of Vietnam; Ms Federica MOGHERINI, High Representative of the EU for Foreign Affairs and Security Policy; Mr Sebastian KURZ, Austrian Federal Chancellor. Copyright: European Union Event: ASEM Summit 2018

This article is brought to you in association with the European Commission. 


The European Commission today adopted the EU-Vietnam trade and investment agreements, paving the way for their signature and conclusion. Through this adoption, the Commission is demonstrating its commitment to putting these agreements in place as soon as possible.

The trade agreement will eliminate virtually all tariffs on goods traded between the two sides. The agreement also includes a strong, legally binding commitment to sustainable development, including the respect of human rights, labour rights, environmental protection and the fight against climate change, with an explicit reference to the Paris Agreement.

President of the European Commission Jean-Claude Juncker said: “The trade and investment agreements with Vietnam are exemplary of Europe’s trade policy. They bring unprecedented advantages and benefits for European and Vietnamese companies, workers and consumers. They take fully into account the economic differences between the two sides. They promote a rules- and values-based trade policy with strong and clear commitments on sustainable development and human rights. By adopting them a few hours before welcoming the participants in the ASEM-EU Summit in Brussels, the Commission shows its commitment to open trade and engagement with Asia. I now expect the European Parliament and EU Member States to do the necessary for the agreements to enter into force as soon as possible“.

Commissioner for Trade Cecilia Malmström said: “The Commission has now delivered two valuable and progressive agreements with Vietnam that I am convinced the European Parliament and EU Member States can support. Vietnam has massive potential for EU exporters and investors to do business, both now and in the future. It is one of the fastest-growing economies in Southeast Asia, with a vibrant market of more than 95 million consumers, an emerging middle class and a young, dynamic workforce. Through our agreements, we also help spread European high standards and create possibilities for in-depth discussions on human rights and the protection of citizens. I hope the Council and the European Parliament will approve the agreements swiftly to allow businesses, workers, farmers and consumers to reap the benefits as soon as possible.”

The trade agreement will eliminate over 99% of customs duties on goods traded between the two sides. Vietnam will remove 65% of import duties on EU exports from entry into force of the agreement, with the remainder of duties being gradually eliminated over a 10-year period, to take into account that Vietnam is a developing country. The agreement also contains specific provisions to address non-tariff barriers in the automotive sector, and will provide protection for 169 traditional European food and drink products in Vietnam, the so-called Geographical Indications, like Rioja wine or Roquefort cheese. Through the agreement, EU companies will be able to participate on an equal footing with domestic companies in bids for procurement tenders with Vietnamese authorities and state-owned enterprises.

Besides offering significant economic opportunities, the trade agreement also ensures that trade, investment and sustainable development go hand in hand, by setting the highest standards of labour, safety, environmental and consumer protection, ensuring that there is no ‘race to the bottom’ to attract trade and investment. The agreement commits the two parties to respect and effectively implement the principles of the International Labour Organisation (ILO) concerning fundamental rights at work; and to implement international environmental agreements, such as the Paris Agreement; to act in favour of the conservation and sustainable management of wildlife, biodiversity, forestry and fisheries; and to involve civil society in the monitoring the implementation of these commitments by both sides.

The trade agreement includes an institutional and legal link to the EU-Vietnam Partnership and Cooperation Agreement, allowing appropriate action in the case of breaches of human rights.

The investment protection agreement, meanwhile, includes modern rules on investment protection enforceable through the new Investment Court System and ensures that the right of the governments on both sides to regulate in the interest of their citizens is preserved. It will replace the bilateral investment agreements that 21 EU Members States currently have in place with Vietnam.

Alongside the agreement recently reached with Singapore, this agreement will make further strides towards setting high standards and rules in the ASEAN region, helping to pave the way for a future region-to-region trade and investment agreement.

Background

Vietnam is the EU’s second largest trading partner in the Association of Southeast Asian Nations (ASEAN) after Singapore, with trade in goods worth €47.6 billion a year and €3.6 billion as it comes to services. While EU investment stock in Vietnam remains modest standing at €8.3 billion in 2016, an increasing number of European companies are establishing there to set up a hub to serve the Mekong region. Main EU imports from Vietnam include telecommunications equipment, clothing and food products. The EU mainly exports to Vietnam goods such as machinery and transport equipment, chemicals and agricultural products.

Next steps

The Commission is now submitting to the Council the proposals for signature and conclusion of both agreements. Once authorised by the Council, the agreements will be signed and presented to the European Parliament for consent. Once the European Parliament has given its consent, the trade agreement can then be concluded by the Council and enter into force. The investment protection agreement with Vietnam will be ratified by Member States according to their respective internal procedures.

Advertising

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

Marco Polo’s Dream

The European Brain Drain: hard facts and harder truths

MEPs take stock of the EU’s foreign, security and defence policy priorities

Who the US and China have trade disputes with

Youth not prioritised in new Commission

UN News Daily #UNGA Guide: Mandela Peace Summit, Global Goals, Youth and Yemen

COP21 Business update: Companies urge now for carbon pricing as coal is still a big issue

Dieselgate: Parliament calls for mandatory retrofits of polluting cars

Sahel States need international support ‘now more than ever’– UN peacekeeping chief

Venezuela migrant crisis begs a ‘coherent, predictable and harmonized’ response: UNHCR

Siemens-Alstom merger: Will the EC succumb to Franco-German pressures for the sake of May’s EU Elections?

UN chief outlines solutions to defeat ‘four horsemen’ threatening our global future

The European Parliament x-rays the troika’s doings

Copyright: MEPs back provisional agreement

We probably should go back to the therapy in Primary Healthcare

Children in crisis-torn eastern Ukraine ‘too terrified to learn’ amid spike in attacks on schools

More than 90% of the world’s children are breathing toxic air

Sweden gives all employees time off to be entrepreneurs

From low-earth orbit, ‘envoys’ of humanity join UN space forum

Love Affair with Some(one)/(thing)

These airports are now opening their doors to non-fliers

Khashoggi murder trials must public and meet international standards, UN expert urges

Gender is where the feminist and LGBTI movements meet. Here’s why

Yemen: ‘Living hell’ for all children, says UNICEF; Angelia Jolie calls for ‘lasting ceasefire’

The EU Consumer Policy on the Digital Market: A Behavioral Economics View

4 ways 3D printing can revolutionize manufacturing

Why the ocean holds the key to sustainable development

More than 3,400 classrooms damaged or destroyed by Cyclone Idai in Mozambique, says UN Children’s Fund

6th Edition of India m2m + iot Forum 2019 concluded, in association with The European Sting

If a virus could sing … Could this musical version of COVID-19 help us defeat the disease?

UN rushes to deliver aid as key Yemeni port city is ‘shelled and bombarded’

More women and girls needed in the sciences to solve world’s biggest challenges

GDPR and the World Cup have these 4 things in common

These four countries are the happiest in the European Union

A Sting Exclusive: “The competitiveness of Europe depends on a digital single market”, EPP President Joseph Daul highlights live from European Business Summit 2015

The EU risks trade relations with China over the Tata hype about steel

A new proposal breaks the stalemate over the Banking Union

3 charts that show how global carbon emissions hit a record high in 2018

Water scarcity is a growing problem across the Middle East. Is this how we solve it?

Why is the EU launching a doomed policy in stopping immigrant waves? What are the real targets?

Cape Town almost ran out of water. Here’s how it averted the crisis

UN cultural agency removes birthplace of Jesus from its list of heritage sites in danger

‘Once-in-a-generation opportunity’ will be squandered, warns Guterres, unless social, economic, environmental challenges are met

Migration: Commission takes action to find solutions for unaccompanied migrant children on Greek islands

Eurozone to enter the winter…

Restoring prospect of peace in Middle East is ‘our shared responsibility’ UN envoy tells Security Council

ECB to people: Not responsible if you lose money on Bitcoin, your governments are

Yellow vests, rising violence – what’s happening in France?

Aidex: the Global Humanitarian and Development Aid Event

A European student just sets the question of the day: What kind of education policies are missing in Europe?

‘We are facing a learning crisis’, UN chief warns on International Youth Day

High unemployment to continue haunting the EU

Want to cut greenhouse gas emissions? Look to digital technologies

European Commission adopts new list of third countries with weak anti-money laundering and terrorist financing regimes

What’s the latest on coronavirus antibody tests?

There are 3 barriers blocking good menstrual hygiene for all women. Here’s how we overcome them

ECB to buy corporate bonds: Will government financing be the next step?

Global leaders and companies pledge to reduce the gender pay gap by 2030

One-in-five suffers mental health condition in conflict zones, new UN figures reveal

Ghana will grow faster than any other economy this year, the IMF says why

More Stings?

Advertising

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s