After years of negotiations, the European Union and Vietnam want to sign a free trade agreement today. The agreement will gradually eliminate virtually all tariffs.
Clothing, mobile phones, spare parts
The Southeast Asian country with more than 95 million inhabitants is one of the few states with a communist one-party government. Since the economic opening, it has enjoyed high growth rates. Clothing, mobile phones and spare parts are mainly exported to Europe.
Diminution of 99 percent of customs duties
The free trade agreement is signed with an investment protection agreement in Vietnam’s capital Hanoi. Brussels is joined by EU Trade Commissioner Cecilia Malmström. The agreements provide for the reduction of 99 percent of customs duties in the coming years. The European Parliament still has to agree. Immediately upon entry into force, about two-thirds of the goods would be exempt from customs duties.
Vietnam is the second largest EU trading partner in the region after Singapore. Last year, Vietnamese goods worth more than 37 billion euros were imported. In the future, there will also be firm agreements on how to deal with intellectual property, as well as the commitment to comply with essential standards of the International Labor Organization, such as the prohibition of child labor. A commitment to implement the Paris Climate Change Agreement is also included.
