Briefing - International Agreements in Progress: EU-Vietnam Free Trade Agreement - 14-02-2018

Briefing - International Agreements in Progress: EU-Vietnam Free Trade Agreement - 14-02-2018 14-02-2018 12:00 AM CET The free trade agreement (FTA) with Vietnam has been described as the most ambitious deal of its type ever concluded between the EU and a developing country. Not only will it eliminate over 99 % of customs duties on goods, it will also open up Vietnamese services markets to EU companies and strengthen protection of EU investments in the country. According to European Commission figures, the FTA could boost Vietnam's booming economy by as much as 15 % of GDP, with Vietnamese exports to Europe growing by over one third. For the EU, the agreement is an important stepping stone to a wider EU-south-east Asia trade deal. Despite the obvious economic benefits of the FTA for Vietnam, some of its more vulnerable manufacturing sectors may suffer from competition with the EU. NGOs have also criticised the EU for pursuing closer ties with a politically repressive regime known for its human rights abuses, although the deal includes some safeguards against negative outcomes. Although the content of the FTA was already agreed in 2015, ratification has been delayed by a 2017 opinion of the European Court of Justice. The Court argued that some aspects of the EU-Singapore FTA, which is similar to the Vietnam FTA, are 'mixed competences', meaning that the FTA as it stands will have to be ratified not only by the EU but also by the 28 Member States. The Commission and Council are now considering whether to modify the agreement so that parts of it can be ratified more speedily by the EU alone. Second edition. The 'International Agreements in Progress' briefings are updated at key stages throughout the process, from initial discussions through to ratification. Source : © European Union, 2018 - EP QUESTIONS? STAY CONNECTED  Contact Us |   This email was sent on behalf of the European Parliament · Bât. Altiero Spinelli · 60 rue Wiertz / Wiertzstraat 60 · B-1047 - Bruxelles/Brussels  · Belgium · Phone: +32(0)2 28 42111