EU/Vietnam Free Trade Agreement: Implementation in 2018?
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Theme: |
International trade |
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Country: |
EU / VIETNAM / ASEAN |
The negotiationsEU FTA / Vietnam were launched in June 2012: on 1 February 2016, the text of the agreement was published following the announcement of the conclusion of the negotiations*. Following the current legal review, the European Commission will present a proposal to the Council of Ministers for approval of the agreement and ratification by the European Parliament.
Customs import duties will be phased out within 7 to 10 years, but the total exemptions will already cover a wide range of tariff headings as soon as the Agreement enters into force.
Background
Vietnam is part of the Generalized Preferred System (GSP) In the context of the initial project, the entry into force of the Comprehensive Economic Agreement implied the exclusion of Vietnam from the list of GSP beneficiary countries (cf. International atmosphere of August 2015). However,it is now planned a transitional period of 2 yearsduring which GSP and FTA will coexist.
Beyond its direct impact on tariff barriers, this Comprehensive Economic Agreement is, more than one title, presented as a model of the genre. It is part of the new approach to the common trade policy, including non-tariff barriers to trade, foreign direct investment (FDI), as well as social, ethical and environmental concepts (cf. International atmosphere of October 2016).
The EU has trade balance Vietnam: In 2016, Vietnamese exports to the Community accounted for almost 80% of the total merchandise trade between the two partners.
However, Vietnam has undergone a radical economic and social transformation over the last two decades, in parallel with its integration into the world economy (cf. International atmosphere of October 2008). In addition, as a member of ASEAN**, Vietnam has considerable potential for EU companies (cf. International atmosphere of October 2016).
* « EU-Vietnam Free Trade Agreement: Agreed text as of January 2016 » : document available to our subscribers on request.
** ASEAN – ASEAN (Association of Southeast Asian Nations): Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar (formerly Burma), Philippines, Singapore, Thailand and Vietnam.
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