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

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

the sting Milestone

Featured Stings

How to build a more resilient and inclusive global system

Can we feed everyone without unleashing disaster? Read on

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

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

This Dutch company makes environmentally-friendly paint

Measles cases nearly doubled in a year, UN health agency projects

After music and TV, where will the streaming revolution take us next?

Trust is at breaking point. It’s time to rebuild it

Here’s how the EU is doing on gender equality

5 ways for business leaders to win in the 2020s

Call to revitalize ‘language of the ancestors’ for survival of future generations: Indigenous chief

France-Germany: Divided in Europe, USA united in…Iran

UN must bring more women police officers into the fold to be effective – UN peacekeeping official

Is academia losing its chance to capitalize on technology?

Berlin repels proposal for cheaper euro

GSMA Announces New Speakers for Mobile 360 Series – MENA, in association with The European Sting

These countries have the most expensive childcare

Will Merkel ever steer the EU migration Titanic and restore her power in Germany?

Scientists are growing meat on blades of grass

Medical workforce migration in Europe – Is it really a problem?

Millions at risk if Syria’s war moves to last redoubt of Idlib, warns senior aid official

Youth policy in Europe not delivering for young people

General Assembly officially adopts roadmap for migrants to improve safety, ease suffering

Cities will lead the electric transport revolution. Here’s why

‘Stop and listen’ to victims of terrorism, UN chief urges in message marking international day

Is it true that the G20 wants to arrest tax evasion of multinationals?

ITU Telecom World 2017: exploring smart digital transformation

80,000 youngsters at risk in DRC after forcible expulsion from Angola: UNICEF

FROM THE FIELD: ‘Eco-warriors’ fight climate change in South Africa

Jordan flash flooding: UN chief ‘saddened’ by loss of life

UN working ‘intensively’ to stop Ebola in eastern DR Congo, following second case in major border town

More state aid to big firms, no special provisions for the SMEs

Can Greece’s devastating economy deal with the migration crisis?

The UK referendum has already damaged Europe: even a ‘remain’ result is not without cost to Britain and the EU

Third EU-Western Balkans Media Days: EU reaffirms comprehensive support to media freedom in the region

My twin from Guangzhou

Australia wants to build a giant underground ‘battery’ to help power the nation

UN health experts warn ‘dramatic resurgence’ of measles continues to threaten the European region

The German automotive industry under the Trump spell

Eating less beef and more beans would cut deaths by 5-7%

Commission criticised member states on blocking financial transaction tax

Siege of Syria’s eastern Ghouta ‘barbaric and medieval’, says UN Commission of Inquiry

A Sting Exclusive: the EU referendum is about fighting for an outward-looking Britain

How drones can manage the food supply chain and tell you if what you eat is sustainable

104 countries have laws that prevent women from working in some jobs

UN launches plan to promote peace, inclusive growth in Africa’s Sahel

The fatal consequences of troika’s blind austerity policy

We need to bin disposable items for good. Here are 5 ways to do it

FROM THE FIELD: Conversations about Conservation

Medical Doctors in Industry 4.0: pure science fiction

Alcoholic drinks: Commission tables update of rules governing alcohol excise duties

Embrace ‘people-centered multilateralism,’ UN-civil society forum urges

The European Commission and EU consumer authorities publish final assessment of dialogue with Volkswagen

Dutch voters reject EU-Ukraine partnership and open a new pandora’s box for the EU

EU and New Zealand launch trade negotiations

Canada needs to increase foreign aid flows in line with its renewed engagement

“ASEM: Global Partners for Global Challenges”, a Sting Exclusive by China’s Ambassador to the EU

Congolese expelled from Angola returning to ‘desperate situation’: UN refugee agency

The UK is on a record-breaking run of coal-free power

UK: Customs Union with EU or a longer delay of Brexit

Human trafficking cases hit a 13-year record high, new UN report shows

Syria: Guterres concerned over reported attacks in Idlib, calls for ‘full investigation’

These European countries produce the most plastic waste per person

More Stings?

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