European Union Vietnam Free Trade Agreement

The EU and Vietnam agreed on a robust and comprehensive chapter on trade and sustainable development, with an exhaustive list of commitments, including: on 8 June 2020, the Vietnamese National Assembly unanimously ratified the new Vietnam-EU Free Trade Agreement (EUVNA) and the EU-Vietnam Parallel Investment Protection Agreement (EUVIPA). It was preceded by the approval of both agreements by the European Parliament on 12 February 2020. The ALER came into force on 1 August 2020. EUVIPA, which falls under the shared competence1 of the EU and its Member States, is currently ratified at national level by the regional and national parliaments of the EU Member States. The AIEUE is set out below. We will examine EUVIPA separately whether this agreement should be ratified and enter into force. The EEEC focuses on the almost total elimination of tariffs between the EU and Vietnam, including the elimination of more than 99% of tariffs in 10 years. Upon its entry into force, 65% of EU exports (by type) to Vietnam and 71% of Vietnamese exports to the EU will be exempt from customs duties. Tariffs on other EU products will be gradually liberalised over a period of ten years and tariffs on some Vietnamese products will be reduced over a period of 7 years. The ECA also provides for the application of tariff quotas for certain remaining agricultural products for which import duties are not progressively reduced. The EUA is expected to remain in force until the end of the year, while the UK is still in a customs union with the EU.

The situation from 1 January 2021 will depend on the decision of the UK and Vietnam to agree on their own bilateral agreement, although this is unlikely in the short term, given that Vietnam is not currently one of the priority free trade agreements for the UK (of which the EU is a part, , japan, Australia, New Zealand and the United States). The question of a possible diagonal or extended cumulation of origin between the UNITED KINGDOM, the EU and Vietnam (i.e. when parties from countries that are not parties to a free trade agreement, for example. B the United Kingdom from 2021, can be considered as “originating products” and can therefore contribute to respecting the preferential rule of origin of a product) will depend on the will of the three parties: Agree with this. At this stage, the EU does not foresee the possibility of such expanded cumulation in its FTA discussions with the UK with a view to a free trade agreement. Vietnam has concluded free trade agreements with many countries in the region, such as Japan, South Korea, etc. Another important free trade agreement in which Vietnam participates is the Trans-Pacific Partnership. It concerns countries bordering the Pacific Ocean, such as Japan, Chile, Canada and Australia. With the United States withdrawing from the negotiations, the remaining eleven countries continued negotiations and agreed on the new Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

The importance of the CPTPP for Vietnam is much lower than the TPP, given that Vietnam had already concluded FTA agreements with the remaining eleven countries, either bilaterally or through the ASEAN Pact. In February 2020, the European Parliament ratified a Free Trade Agreement (FTA) and an Investment Protection Agreement (IPA) with Vietnam. MEPs (MDEP) voted in favour of the agreements in Strasbourg. The EUA commits Vietnam and the EU (if this has not yet been done) to ratify the eight core Conventions of the International Labour Organisation (ILO); (ii) respect, promotion and effective implementation of ILO principles of fundamental rights in the workplace; and (iii) the implementation of the Paris Agreement and other international environmental conventions, including the promotion of the conservation and sustainable management of wildlife, biodiversity, forestry and fisheries. . . .

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