EVFTA negotiations are a positive move in Vietnam-EU relations

Prime Minister Nguyen Tan Dung met with President of the European Council Herman Van Rompuy during his visit to Europe on October 13, 2014. (Photo: Duc Tam/VNA)

On March 24, Vietnam and the European Union (EU) will continue the 12th round of negotiations on the Free Trade Agreement (EVFTA) in Hanoi. This can be considered the final round of negotiations for the two sides to resolve differences and announce the end of negotiations and sign the agreement.

Mr. Joseph Waldstein Wartenberg, spokesman for the Trade Department of the European Commission (EC), affirmed that Vietnam is a friend and reliable partner of the EU and the signing of the Partnership and Cooperation Agreement, as well as conducting negotiations on the Free Trade Agreement, are positive moves in the bilateral relationship.

Mr. Wartenberg emphasized that this year, the EU and Vietnam also celebrate the 25th anniversary of the establishment of bilateral relations. The EU is very interested in strengthening relations with Vietnam, including promoting economic and trade relations. The signing of the EVFTA in the future will promote growth and employment in both Vietnam and the EU.

The EU is Vietnam's second largest trading partner (after China). In 2013, two-way trade reached 27 billion euros, of which the EU imported goods from Vietnam worth 21 billion euros.

Vietnam is also the EU's 4th largest trading partner in ASEAN and 30th among the EU's trading partners. Vietnam's exports to the EU increased by 28% from 2009 to 2013.

Assessing Vietnam's economy, Mr. Wartenberg commented that Vietnam is one of the fastest growing countries in the ASEAN region and is a prominent example of an open economy oriented towards trade.

The country has a young population and a highly skilled workforce and has untapped potential in the EU’s trade and investment relationship. The EU is therefore keen to strengthen trade relations with Vietnam through an FTA.

The FTA is an ambitious and comprehensive agreement covering goods, services, investment, and government procurement. In addition to tariffs and the elimination of non-tariff barriers, negotiations are focusing on addressing other issues related to trade, regulatory issues, competition, and intellectual property rights including geographical indications.

In addition, the agreement will further strengthen EU-Vietnam trade and investment relations and create business opportunities for both sides. Mr. Wartenberg said that the EU and Vietnam are complementary economies with much to gain from closer cooperation than ever before.

EU exports to Vietnam include high-tech products such as machinery, electrical equipment, aircraft, automobiles, and pharmaceuticals. Vietnam's main exports to the EU are footwear, clothing, coffee, rice, seafood, and wooden furniture.

To avoid Vietnam becoming a low-skilled labor market after signing the EVFTA, Mr. Wartenberg said there will be a chapter on trade and sustainable development, including commitments to International Labor Organization (ILO) standards, multilateral environmental treaties and agreements, regulations not to undermine or fail to effectively enforce domestic labor and environmental laws to attract trade and investment, especially to avoid a “race to the bottom,” as well as creating mechanisms for civil society participation.

In addition, Vietnam must also commit to the conservation and sustainable management of biodiversity (including wildlife), forestry (including combating illegal logging), and fisheries, as well as climate change.

Mr. Wartenberg emphasized that Vietnam's commitment to reform under the "Doi Moi" policy implemented since the mid-1980s has led to important socio-economic achievements. Vietnam's commitment to economic and political reform is impressive. The EU will continue to support this process through the EVFTA negotiations./.

According to VNA