EU welcomes decision to sign free trade agreement with Vietnam
On June 25, President of the European Commission (EC) Jean-Claude Juncker announced that he welcomed the decision of the European Union (EU) member states to approve the authorization for the European Commission to sign the Free Trade Agreement (EVFTA) and the Investment Protection Agreement (EVIPA) between the EU and Vietnam.
President Juncker said that the agreements with Vietnam were only the second signed between the EU and a Southeast Asian country after Singapore, and that they were a stepping stone to a greater commitment between Europe and the Association of Southeast Asian Nations (ASEAN). The EC President stressed that this was also a political statement by two partners for open, fair and rules-based trade.
Commissioner for Trade Cecilia Malmström expressed her delight at the green light given by Member States to the conclusion of the EU-Vietnam Trade and Investment Agreements. She described Vietnam as a vibrant and promising market with over 95 million consumers, and said both sides would benefit from a strong trade relationship. In addition to the obvious economic benefits, the Agreements will also promote respect for human rights, workers' rights and environmental protection.
Commissioner Cecilia Malmström welcomed Vietnam’s commitment in the past – the recent ratification of the International Labour Organisation Convention on Collective Bargaining is an excellent example of how trade agreements can encourage the adoption of higher standards.
On behalf of the EU, Trade Commissioner Cecilia Malmström and Romanian Minister of Business Environment, Trade and Entrepreneurship Stefan Radu Oprea will sign the above agreements in Hanoi on June 30.
Once signed, the Agreements will be submitted to the Vietnamese National Assembly as well as the European Parliament for ratification. Once the Legislative Bodies of both sides agree, the Free Trade Agreement will come into force and be implemented. Meanwhile, in addition to the above procedures, EVIPA also needs to be ratified by the Parliaments of EU member states according to each country's internal procedures.
Vietnam is currently the EU’s second largest trading partner in ASEAN with a trade turnover of nearly 50 billion euros in goods and over 3 billion euros in services. Vietnam’s main exports to the EU include telecommunications equipment, footwear and textiles, furniture and agricultural products. The EU mainly exports to Vietnam goods such as machinery and transport equipment, chemicals, food and beverages.
