The Vietnam UE Agreement: An Overview
The Vietnam UE Agreement, also known as the EU-Vietnam Free Trade Agreement (EVFTA), is a comprehensive trade deal signed between the European Union (EU) and Vietnam in June 2019. The agreement was ratified by both parties in early 2020 and went into effect on August 1, 2020.
The agreement aims to boost trade between the EU and Vietnam by removing tariffs and other trade barriers, as well as by setting common rules and standards for trade. It covers a wide range of areas, including goods and services trade, investment, intellectual property, public procurement, competition, and sustainable development.
Under the EVFTA, the EU will eliminate almost all tariffs on Vietnamese exports over a period of ten years, while Vietnam will remove 65% of its import duties on EU goods immediately, and the rest over a period of seven years. This will make it easier and cheaper for businesses in both regions to trade with each other, and is expected to lead to a significant increase in bilateral trade.
In addition to trade liberalization, the agreement also includes provisions on labor rights and environmental protection, which are aimed at ensuring that trade is sustainable and responsible. The agreement commits Vietnam to ratifying and implementing international labor standards, as well as to promoting the rights of trade unions and collective bargaining. It also includes a chapter on sustainable development, which covers issues such as climate change, biodiversity, and corporate social responsibility.
The Vietnam UE Agreement is expected to have significant economic and geopolitical implications for both parties. For Vietnam, the agreement offers new opportunities for trade and investment, particularly in high-value products such as electronics, pharmaceuticals, and textiles. It also signals a closer relationship with the EU, which is Vietnam`s second-largest trading partner after China.
For the EU, the agreement is seen as part of a broader strategic push to deepen economic ties with Asia, and to counterbalance China`s growing economic influence in the region. The agreement also reflects the EU`s commitment to promoting sustainable development and human rights in its trade relationships, and is expected to set a new standard for trade agreements between developed and developing countries.
In conclusion, the Vietnam UE Agreement is a significant milestone in the economic relationship between the EU and Vietnam, and is expected to have far-reaching implications on trade and investment in both regions. While there are still challenges to be addressed, such as implementing the agreement`s labor and environmental provisions, the agreement represents a step forward towards a more open, sustainable, and responsible global trading system.