Brussels, 02/12/2015 (Agence Europe) - During the visit to Brussels of Vietnamese Prime Minister Nguyen Tan Dung on Wednesday 2 December, and 25 years after they established their diplomatic links, the EU and Vietnam announced the conclusion of the negotiations for a free-trade agreement, which launched in 2012. An agreement in principle was reached in August of this year (see EUROPE 11372).
“The path is now clear to complete internal procedures (Ed: of legal scrubbing and translation into the 22 languages of the EU) leading to the signature, ratification and full implementation of the Agreement”, said President of the European Council Donald Tusk, President of the Commission Jean-Claude Juncker, and Nguyen Tan Dung in a joint statement.
Whilst all of this is going on, the Commission and the Vietnamese government will draft an indicative joint roadmap and a technical assistance programme to help Vietnam integrate successfully as a market economy into the global economy, the statement reads.
The EU-Vietnam free-trade agreement, the first of the kind concluded by the EU with a developing country, covers trade in goods and services, investment, public procurement, intellectual property (including geographical indications), non-tariff barriers to trade, sanitary and phytosanitary measures, technical barriers to trade, customs cooperation and trade facilitation, and it also includes a chapter on sustainable development.
Furthermore, Hanoi agreed to include a chapter on investment protection based on the reformed approach to investment protection and a new more transparent system for settling disputes between investors and states, which was proposed by the Commission in the autumn (see EUROPE 11429).
“This agreement will contribute to strengthening our economies and societies through improved access to each other's markets. It will also help trigger a new wave of high quality investment in both directions, and support Vietnam's transition to a more competitive, smart and green economy”, reads the statement of the EU and Vietnamese leaders.
“Vietnam is a market with significant potential. With its 93 million people, a growing purchasing power and a young and dynamic workforce, it offers increasing opportunities for the EU's agricultural, industrial and service exports”, it continues.
The agreement is also a “significant milestone” for trade relations between the EU and ASEAN, of which Vietnam is a member, “towards the ultimate goal” of a bi-regional agreement, it concludes.
European Commissioner for Trade Cecilia Malmström stresses the significance of the agreement “because of its strong focus on sustainable development”. “It will support Vietnam's efforts to further enhance economic growth and development for its people in the years to come. This agreement provides a new model for trade policy with developing countries. The EU and Vietnam have also committed to ensure the respect of workers' rights and to support a sustainable management of natural resources”, she pledges. (Original version in French by Emmanuel Hagry)