By 401 votes in favour, 192 against and 40 abstentions for the free trade agreement (FTA), 407 in favour, 188 against and 53 abstentions for the investment protection agreement (IPA), the two EU/Vietnam trade agreements obtained the consent of the European Parliament in plenary session in Strasbourg on Wednesday 12 February.
Although controversial (see EUROPE 12363/26), these treaties were ultimately better received than the CETA agreement with Canada, perhaps for not having been subjected to the slings and arrows of the European agri-food industry.
However, the poll recalled old rifts, mainly within the Social Democrat group. The political groups on the right have positioned themselves in favour, while those on the left have rejected them.
Expected benefits. Concluded in December 2015, these unprecedented agreements with a development partner are described by their supporters as "modern" and "historic".
The FTA will eventually eliminate 99% of tariffs between the two parties. 65% of Vietnamese import duties will be abolished upon entry into force of the agreement, with the remainder to be covered by transition periods which may extend until 2030. However, this deadline will not apply to key European exports - medicines, chemicals and machinery - which will be zero-rated as soon as the treaty is applied.
The agreement will also protect 169 geographical indications and allow the dismantling of non-tariff barriers in the automotive sector.
Sustainable development. The sustainable development chapter of the FTA - respect for workers' rights, environmental and climate protection - contains legally binding and enforceable provisions, the Commission recalled in a statement.
With one third of MEPs opposed to the agreement, due to Hanoi's still very mixed record on these issues, the EU is now under pressure to make this FTA a textbook case for supporting the democratic development of the communist regime.
This support has already begun, the EU institutions point out (see EUROPE 12418/16). They add that the imminent appointment of a trade enforcement officer ('TEO') will also help focus on this monitoring.
Fisheries. MEPs also backed an amendment by Pierre Karleskind (Renew Europe, France) that in future agreements, special attention will be paid to fisheries products if additional efforts are not made to combat illegal fishing in Vietnam. The Vietnamese authorities' attitude on the issue had earned them a yellow card in 2017 (see EUROPE 11889/4).
The FTA will be applied as soon as it is concluded by the Council and ratified by Vietnam. The IPA, which contains the new version of the Investment Court System ('ICS') to be ratified by all Member States, will have a longer way to go. In the meantime, bilateral investment agreements, often unbalanced and obsolete, will be applied.
The total stock of EU foreign direct investment in Vietnam was €6.1 billion in 2017, making the EU one of the largest investors in the country. (Original version in French by Hermine Donceel with Lionel Changeur)