Vietnam, EU agree ‘in principle’ on free-trade pact

Industry and Trade Minister Vu Huy Hoang said Vietnam still help its exports and investment.

The European Union and Vietnam clinched on Monday an agreement in principle on a new free trade deal that would see the lifting of most tariffs on goods. “It sets a new, better and modern model for Free Trade Agreements between the EU and developing countries, and establishes a good standard for the trade relationship between the EU and South East Asia as a whole”, Malmstrom was quoted as saying in the statement.

The two sides had agreed on “all issues of substance” and that the “agreement will remove almost all tariffs on goods traded between the two economies”, Ms Malmstroem’s office said. Officials must now agree on remaining technical issues, such as dispute settlement, before the deal can be officially approved by EU member states and the European Parliament.

Free trade with the EU would be a boon for Vietnam, a fast-growing, export-led economy set to receive preferential access to a bloc with a combined GDP of $18.46 trillion (£11.82 trillion).

“Our deal will also make sure that trade does not take place at the cost of the environment or of people’s rights”, Malmstrom said.

As part of the deal Vietnam will liberalize trade in telecommunications, financial services, transport, and postal and courier services over 10 years whilst over 7 years EU duties would be eliminated.

Following on from a tenth round of talks in July, Malmstrom said she would meet U.S. Trade Representative Michael Froman in Washington in September to prepare for more talks in October and also in December. And Vietnam’s exporters will now get much easier access to the EU for their products, giving an important boost to the Vietnamese economy. Vietnamese GIs too will be recognised as such in the EU, providing the adequate framework for further promoting imports of quality products such as M?c Châu tea or Buôn Massachusetts Thu?t coffee.

Follow EU Trade Commissioner Cecilia Malmström’s press conference live.