Brussels, 02/04/2012 (Agence Europe) - Following Singapore and Malaysia, the EU is expected to negotiate a bilateral free trade agreement with a third partner in the ASEAN region, Vietnam.
Meeting on the margins of the 11th ASEAN-EU Economic meeting in Phnom Penh on Saturday 31 March, EU Trade Commissioner Karel De Gucht and Vietnamese Minister for Industry and Trade Vu Huy Hoang concluded preparations for starting negotiations on a bilateral free trade agreement. Finalising a scoping paper is an important stepping-stone towards launching trade negotiations. The Commission for trade said: “Today's decision marks a clear desire to deepen trade relations and improve the business environment between the EU and Vietnam. The EU and Vietnam are complementary economies with much to gain from ever closer cooperation. In stepping up our trade relations, we will provide new opportunities for importers, exporters and consumers.”
The future negotiations between the EU and Vietnam, which initialled a partnership and cooperation agreement in 2010, will cover a broad range of issues including elimination of import tariffs, trade in services, non-tariff barriers to trade and the trade aspects of rules relating to intellectual property and competition. The Commission will now have to obtain a negotiating brief from member states.
In 2011, EU-Vietnam trade in goods was worth over €18 billion, with almost €13bn in exports from Vietnam to the EU, resulting in a €7.6bn trade surplus in Vietnam's advantage. Vietnam's key export items include footwear, textiles and clothing, coffee, seafood, leather and furniture while the EU exports high tech products including electrical machinery and equipment, aircraft, vehicles, pharmaceutical products, iron and steel. Vietnam is the EU's fifth largest trading partner within ASEAN (and 35th out of the EU's total trade). Conversely, the European Union is Vietnam's 3rd largest trading partner (after China and the US).
The European Union is one of the largest investors in Vietnam (approx. US$ 1.767 billion which represented more than 12% of Vietnam's total committed FDI in 2011 according to Vietnamese sources). (EH/transl.fl)