Brussels, 26/06/2012 (Agence Europe) - Henceforth linked by a Partnership and Cooperation Agreement (PCA), the EU and Vietnam will be consolidating their trade relations with a bilateral free trade agreement.
During a visit to Brussels on 26 and 27 June, a delegation from Vietnam will be killing two birds with one stone. Vietnam's Foreign Minister Pham Binh Minh is to sign the PCA between the EU and Vietnam with EU High Representative Catherine Ashton on Wednesday. The PCA was concluded in 2010 to replace the 1995 cooperation agreement. The new PCA will allow the scope of EU/Vietnam cooperation to be broadened to cover trade, energy and the environment, science and technology, good governance, tourism, culture, migration, counter-terrorism and the fight against corruption and organised crime. It will also promote enhanced cooperation on global and regional challenges, including the strengthening of the multilateral system and global governance, climate change, counter-terrorism and the non-proliferation of weapons of mass destruction. To take effect, the PCA will first have to be ratified by member states and submitted to the European Parliament.
On Tuesday, Vietnamese Trade Minister Vu Huy Hoang and Trade Commissioner Karel De Gucht will have officially initiated talks for a free-trade agreement between the EU and Vietnam. The agreement will cover human rights, non-tariff barriers and include commitments on related aspects including public procurement, regulatory issues, competition, services and sustainable development. It may take three years before the agreement can be sealed.
Vietnam is the EU's fifth largest trading partner in the ASEAN region. Bilateral trade in goods reached a value of €18 billion in 2011 with €5.2 billion in exports for the EU compared with 12.8 billion in exports for Vietnam, which notched up a surplus of 7.6 billion. The EU is one of the largest foreign investors in Vietnam with nearly $1.8 billion in foreign direct investment (FDI) in that country (12% of foreign investment). (EH/transl.jl)