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.

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

This is what a planet-wide network of ocean sanctuaries could look like

Everything you need to know about Ireland’s economy (Post Brexit)

This Central Asian lake is a stark reminder of the impact we have on the planet

IMAGINATION, FACTS AND OPPORTUNITIES – THE UNLIMITED POWER OF CHINA

Western Balkans: MEPs take stock of 2018 progress

Parallel downfalls of Merkel and Deutsche Bank threaten Germany and Europe

International Women’s Day 2019: more equality, but change is too slow

Asylum seekers in Sri Lanka fear for their safety, in wake of Easter Sunday terror attacks

FIAT Chrysler: from Geneva Motor show to the World, and back

Public consultation: Commission seeks citizens’ views in preparation of new European Democracy Action Plan

Commission supports normalisation in Greece through activation of post-programme framework

Arctic policy: EU opens consultation on the future approach

How to look after someone with coronavirus

Facts and prejudices about work

Why we need different generations in the workplace

G20: Less growth, more austerity for developing countries

Syria: At least seven children killed in yet another airstrike

Why Renewable Energy is an attractive investment

Von der Leyen on Coronavirus Global Response: World stands united against coronavirus and will win

Towards a tobacco free India

Libyans continue ‘spilling their blood on the battlefield’ as fight for Tripoli rages on

New Iraqi Prime Minister-designate urged to act on reforms and accountability

2021-2027 EU Budget: €378,1 billion to benefit all regions

Making the most of our ‘extra time’ – for ourselves and society

What’s needed now to fight COVID-19 – Updates from today’s WHO briefing

UN lauds special chemistry of the periodic table, kicking off 150th anniversary celebrations

OECD sees rising trade tensions and policy uncertainty further weakening global growth

How India’s new consumers can contribute to a $6 trillion opportunity

EU Facility for Refugees in Turkey: €5.6 billion out of €6 billion now allocated in support of refugees

Brussels to point the finger to Washington for lack of commitment over TTIP

A poor kid died just now. Do you know why?

Security Council approves ‘historic’ political Haiti mission, ending UN peacekeeping role in the country

10 start-ups that are helping to change the Arab world

Efforts to save the planet must start with the Antarctic

Norway’s electric car market has overtaken traditional vehicle sales

Samsung’s profits fall as cheaper smartphones gain market share

Thousands of health professionals call on world leaders to prioritize a greener future, post-pandemic

Portugal can use its economic recovery to build up resilience

Spain locks down, Denmark shuts borders – today’s COVID-19 updates and expert analysis

Car bomb attack on National Police Academy in Colombia, ‘strongly condemned’ by UN

Spotlight Initiative – EU and UN fight against domestic violence in the Pacific region

EU opens a third antitrust file against Google

Why Eurozone can afford spending for growth

The European Parliament floating over the South China Sea

This wristband tells you what food to buy based on your DNA

UN spotlights wellbeing of seafarers on International Day

Does the West reserve the fate of Libya and Syria for others? How does this relate to the EU’s Neighborhood Policy?

Monday’s Daily Brief: the future of food and digital tech, labour justice in focus, denuclearization, and Kosovo

FROM THE FIELD: Faces and Voices of Conflict

Germany not famous for easy way outs from political stalemates

Terror attacks strike people ‘from all walks of life, the UN included’

Spring 2019 Economic Forecast: Growth continues at a more moderate pace

Is the EU competent enough to fight human smuggling in 2015?

FROM THE FIELD: Hardy seeds bear fruit to protect Colombia’s environment

How do we build an ethical framework for the Fourth Industrial Revolution?

European Commission kicks off major EU trade policy review

Zimbabwe facing man-made starvation, says UN expert

Trump’s Russophiles under investigation, Europe remains ‘en garde’

UPDATED: Guterres condemns armed attack against UN peacekeepers in Mali

South Sudan: UN condemns ‘brutal’ sexual assaults on roads to Bentiu

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