Vietnam and the European Union recently signed the European Union (EU)-Viet Nam Free Trade Agreement (EVFTA) that will pave the way for the removal of 99% of tariff lines on goods traded between the two sides.
Vietnamese Minister of Industry and Trade Vu Huy Hoang and EU Trade Commissioner Cecilia Malmstrom signed on December 2 the declaration concluding negotiations for the EVFTA, witnessed by Jean-Claude Juncker, president of the European Commission, and Vietnam’s Prime Minister Nguyen Tan Dung.
The agreement, the first of its kind that the EU has concluded with a developing country, is expected to enhance trade, investment, and economic growth and create more jobs in Vietnam and the EU, said a report by VGP news, the state-run news agency of Vietnam.
The signing comes after three years of talks with 14 official negotiation rounds, and was declared by the two sides as a historical moment that will strengthen bilateral relations, especially in terms of trade and investment.
The FTA signing is also symbolically significant because it coincides with the celebration of the 25th anniversary of their relationship.
The pact covers trade in goods, rules of origin, customs and trade facilitation, sanitary and phytosanitary measures, technical barriers to trade, trade in services, investment, trade safeguards, competition, state-owned enterprises, governmental procurement, intellectual property, sustainable development, cooperation, capacity building, and legal issues.
Under the agreement, Vietnam has agreed to liberalize trade in financial services, telecommunications, transport, and postal and courier services. The Southeast Asian country will also open its market to EU investments by removing or easing limitations in the manufacture of food products and beverages, as well as in the non-food sectors.
The agreement likewise dedicates a chapter on assisting Vietnam reap the full benefits of the FTA in the areas of labor and environment, trade facilitation, and development of small and medium-sized enterprises.
In 2014, the EU was the second largest trade partner of Vietnam, with two-way trade turnover reaching US$36.8 billion. In the first half of 2015, the figure reached $19.4 billion, a year-on-year increase of 11%.
Photo from VGP News
