Free Trade Agreement between the European Union and the Socialist Republic of Viet Nam

Author (Corporate)
Series Title
Series Details L 186, Pages 3–1400
Publication Date 12/06/2020
Content Type

Summary:

Agreement between the European Union (EU) and Vietnam establishing a Free Trade area, in conformity with Article XXIV of GATT 1994 and Article V of GATS. The objectives of this Agreement (also known as EVFTA) are to liberalise and facilitate trade and investment between the two sides in accordance with the provisions of this Agreement.

Further information:

This agreement scraps duties on 99% of all goods traded between the two sides. It expresses a commitment of both sides to environment and social rights. It sets high standards of labour, environmental and consumer protection and ensures that there is no 'race to the bottom' to promote trade or attract investment. The text also includes an institutional and legal link to the EU-Vietnam Partnership and Cooperation Agreement (PCA), allowing appropriate action in the case of serious breaches of human rights.

Negotiations with Vietnam regarding a bilateral trade agreement originating from the wider aim to establish a region-to-region trade deal between the European Union and the Association of Southeast Asian Nations (ASEAN). The wider talks were launched in 2007 and suspended in 2009 due to lack of progress. The EU decided to engage in negotiations with individual countries instead, based on the negotiating mandate for the wider ASEAN talks.

Discussions with Vietnamese authorities were launched in June 2012 and an agreement in principle for an FTA was reached in August 2015, following 14 rounds of negotiations. The talks were concluded in December 2015.

In 2018, the two sides decided to split their agreement into two standalone texts - this Free Trade Agreement (FTA) and a separate Investment Protection Agreement (IPA). The first covers exclusive EU competences (and could therefore be ratified by the EU alone), while the second covers shared competences, on which the EU shares decision-making powers with the Member States (meaning that the agreement must also be ratified by them).

In October 2018, the European Commission presented proposals for Council Decisions on the signing and conclusion of the FTA on behalf of the European Union. The Decision on signing the Agreement was adopted by the Council of the European Union in June 2019, followed by the Decision on concluding the Agreement in March 2020. The European Parliament endorsed in February 2020. It entered into force on 1 August 2020.

Source Link https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2020.186.01.0003.01.ENG
Related Link(s)
Commentary and Analysis
EPRS: Briefing, October 2016: International Agreements in Progress: EU-Vietnam Free Trade Agreement https://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_BRI(2016)589835
EPRS: Briefing, February 2018: International Agreements in Progress: EU-Vietnam Free Trade Agreement https://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_BRI(2018)614702
EPRS: Briefing, October 2018: International Agreements in Progress: EU-Vietnam Free Trade Agreement https://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_BRI(2018)628248
The Diplomat, 12/07/2019: A Deeper Look at Vietnam’s Trade Deal With Europe https://thediplomat.com/2019/07/a-deeper-look-at-vietnams-trade-deal-with-europe/
EPRS: Briefing, November 2019: International Agreements in Progress: EU-Vietnam trade and investment agreements https://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_BRI(2019)642270
ETUC: Document, 18/12/2019: ETUC position on the EU-Vietnam Free Trade and Investment Protection Agreements https://www.etuc.org/en/document/etuc-position-eu-vietnam-free-trade-and-investment-protection-agreements
EUObserver, 15/01/2020: MEPs: Don't waste your chance to change Vietnam https://euobserver.com/opinion/147134
HRW: News, 04/02/2020: NGOs Urge European Parliament to Postpone Consent to EU-Vietnam Trade Deals https://www.hrw.org/news/2020/02/04/ngos-urge-european-parliament-postpone-consent-eu-vietnam-trade-deals
EP GUE/NGL Group: The EU-Vietnam Free Trade Agreement - an explainer (11 February 2020) https://www.guengl.eu/issues/explainers/the-eu-vietnam-free-trade-agreement-an-explainer/
EPRS: At a Glance, February 2020: Trade and investment agreements with Vietnam https://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_ATA(2020)646158
EP ECR Group: Article, 12/02/2019: EU-Vietnam Free Trade Agreement: “It is now up to the European Union to promote rules based trade” https://ecrgroup.eu/article/eu_vietnam_free_trade_agreement_it_is_now_up_to_the_european_union_to_promo
EP S&D Group: Newsroom, 12/02/2020: Vietnam trade deal brings progress for millions of Vietnamese workers, say S&Ds https://www.socialistsanddemocrats.eu/newsroom/vietnam-trade-deal-brings-progress-millions-vietnamese-workers-say-sds
PwC: Insights and Publications, 07/07/2020: FTA between EU and Viet Nam to enter into force 1 August 2020 https://www.pwc.nl/en/insights-and-publications/tax-news/vat/FTA-eu-vietnam-enters-into-force-1-august-2020.html
KPMG: Insights, 31/07/2020: Free trade agreement between EU and Vietnam https://home.kpmg/us/en/home/insights/2020/07/tnf-free-trade-agreement-eu-vietnam.html

News
Politico, 04/08/2015: EU signs trade deal with Vietnam https://www.politico.eu/article/eu-signs-trade-deal-vietnam-ttip-tpp-malmstrom/
EurActiv, 04/08/2015: EU, Vietnam reach deal to boost trade https://www.euractiv.com/section/trade-society/news/eu-vietnam-reach-deal-to-boost-trade/
Deutsche Welle, 04/08/2015: EU, Vietnam to finalize free trade deal https://p.dw.com/p/1G9SJ
BBC News, 05/08/2015: EU-Vietnam deal paves way for major trade boost https://www.bbc.co.uk/news/world-europe-33787530
EurActiv, 11/02/2020: Parliament to approve EU-Vietnam trade deal despite human rights ‘concerns’ https://www.euractiv.com/section/asean/news/parliament-to-approve-eu-vietnam-trade-deal-despite-human-rights-concerns/
Politico, 12/02/2020: European Parliament ratifies Vietnam trade deal https://www.politico.eu/article/european-parliament-ratifies-vietnam-trade-deal/
Bloomberg, 12/02/2020: Europe Notches New Trade Win as Vietnam Pact Clears Final Hurdle https://www.bloomberg.com/news/articles/2020-02-12/europe-notches-new-trade-win-as-vietnam-pact-clears-final-hurdle
Reuters, 08/06/2020: Vietnam ratifies free trade deal with EU https://www.reuters.com/article/idUSKBN23F07V
Deutsche Welle, 08/06/2020: Vietnam ratifies major trade deal with the EU https://p.dw.com/p/3dQCy
SeafoodSource, 22/06/2020: EU-Vietnam free trade deal to take effect 1 August https://www.seafoodsource.com/news/supply-trade/eu-vietnam-free-trade-deal-to-take-effect-1-august

Official
European Commission: DG Trade: Trade Policy regarding Vietnam https://ec.europa.eu/trade/policy/countries-and-regions/countries/vietnam/
European Commission: DG Taxation and Customs Union: Free Trade Agreement between the European Union and Vietnam https://ec.europa.eu/taxation_customs/news/free-trade-agreement-between-european-union-and-vietnam_en
EUR-LEX: Council Decision (EU) 2019/1121 on the signing, on behalf of the European Union, of the Free Trade Agreement between the European Union and the Socialist Republic of Viet Nam http://data.europa.eu/eli/dec/2019/1121/oj
Council Decision (EU) 2019/753 on the conclusion of the Free Trade Agreement between the European Union and the Socialist Republic of Viet Nam http://data.europa.eu/eli/dec/2020/753/oj
EUR-LEX: COM(2018)691: Proposal for a Decision on the conclusion of the Free Trade Agreement between the European Union and the Socialist Republic of Viet Nam https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2018:691:FIN
EUR-LEX: COM(2018)692: Proposal for a Decision on the signing of the Free Trade Agreement between the European Union and the Socialist Republic of Viet Nam https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2018:692:FIN
European Parliament: Legislative Observatory: Procedure File for Proposal on EU/Vietnam Free Trade Agreement https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?reference=2018/0356(NLE)
European Parliament: Legislative Train Schedule: EU-Vietnam Free Trade Agreement (EVFTA) https://www.europarl.europa.eu/legislative-train/theme-a-stronger-europe-in-the-world/file-eu-vietnam-free-trade-agreement/05-2020
European Parliament: Legislative Observatory: Procedure File for Resolution on the state of play of the EU-Vietnam Free Trade Agreement https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?lang=en&reference=2013/2989(RSP)
European Commission: Press Release, 02/03/2010: EU and Vietnam To Launch Free Trade Negotiations https://ec.europa.eu/commission/presscorner/detail/en/IP_10_219
European Commission: Press Release, 31/03/2012: EU and Vietnam move closer to starting trade negotiations https://ec.europa.eu/commission/presscorner/detail/en/IP_12_339
European Commission: Press Release, 26/06/2012: EU and Vietnam launch negotiations for a comprehensive Free Trade Agreement https://ec.europa.eu/commission/presscorner/detail/en/IP_12_689
European Commission: Speech: EU-Vietnam Trade Negotiations: Renovation and Openness (7 March 2013) https://ec.europa.eu/commission/presscorner/detail/en/SPEECH_13_205
European Commission: DG Trade: EU-Vietnam - Industry consultation (2012) http://trade.ec.europa.eu/consultations/?consul_id=168
European Commission: Press Release, 04/08/2015: EU and Vietnam reach agreement on free trade deal https://ec.europa.eu/commission/presscorner/detail/en/IP_15_5467
European Commission: Memo, 04/08/2015: Facts and figures: Free Trade Agreement between EU and Vietnam https://ec.europa.eu/commission/presscorner/detail/en/MEMO_15_5468
Vietnam: Online Newspaper of the Government: News, 05/08/2015: VN, EU conclude FTA negotiation http://news.chinhphu.vn/Home/VN-EU-conclude-FTA-negotiation/20158/24989.vgp
UK: UK Government: Press Release, 02/12/2015: EU-Vietnam Free Trade Agreement to boost UK exports https://www.gov.uk/government/news/eu-vietnam-free-trade-agreement-to-boost-uk-exports
European Commission: European Commission, 01/02/2016: EU-Vietnam Free Trade Agreement Now Available Online https://ec.europa.eu/commission/presscorner/detail/en/IP_16_184
UK: Department for International Trade: Impact assessment of the EUVietnam Free Trade Agreement (EVFTA) on the UK (March 2019) https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/790769/Impact-Assessment-of-the-EU-Vietnam-free-trade-agreement-on-the-UK.pdf
Council of the European Union: Press Release, 25/06/2019: EU-Vietnam: Council adopts decisions to sign trade and investment agreements https://www.consilium.europa.eu/en/press/press-releases/2019/06/25/eu-vietnam-council-adopts-decisions-to-sign-trade-and-investment-agreements/
European Commission: Press Release, 25/06/2019: EU set to sign trade and investment agreements with Vietnam on Sunday https://ec.europa.eu/commission/presscorner/detail/en/IP_19_3388
European Parliament: Press Release, 21/01/2020: EU-Vietnam free trade deal gets green light in trade committee https://www.europarl.europa.eu/news/en/press-room/20200121IPR70703/
European Parliament: Headlines, 05/02/2020: EU-Vietnam trade deal: what are the benefits? https://www.europarl.europa.eu/news/en/headlines/priorities/globalisation/20200131STO71518/
European Parliament: Press Release, 12/02/2020: Parliament approves EU-Vietnam free trade and investment protection deals https://www.europarl.europa.eu/news/en/headlines/priorities/globalisation/20200206IPR72012/
Ireland: Department for Business, Enterprise and Innovation: The EU and Vietnam’s Free Trade Agreement - What it means for Irish Exporters (February 2020) https://dbei.gov.ie/en/Publications/EU-Vietnam-FTA%E2%80%93What-it-means-for-Irish-Exporters.html
United States Federal Government: Department of Agriculture: Data & Analysis, 24/06/2020: Vietnam: European Union - Vietnam Free Trade Agreement Ratified https://www.fas.usda.gov/data/vietnam-european-union-vietnam-free-trade-agreement-ratified
European Commission: Press Release, 31/07/2020: EU-Vietnam trade agreement enters into force https://ec.europa.eu/commission/presscorner/detail/en/ip_20_1412
Government of Finland: Ministry of Foreign Affairs: Press Release, 31/07/2020: EU-Vietnam free trade agreement takes effect https://um.fi/current-affairs/-/asset_publisher/gc654PySnjTX/content/eu-n-ja-vietnamin-v-c3-a4linen-vapaakauppasopimus-astuu-voimaan

ESO Records
Vietnam: Deepening International Integration and Implementing the EVFTA (World Bank Report, May 2020) https://www.europeansources.info/record/vietnam-deepening-international-integration-and-implementing-the-evfta/

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