The signing and ratification of the EU – Vietnam Free Trade Agreement (EVFTA) may take place in June or July, after the European Parliament (EP) completes its elections and starts the new tenure, according to Bernd Lange, chairman of the EP’s committee on International Trade (INTA).
Overview of the meeting. Source: quochoi.vn
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Meanwhile, Lange said he fully supports the signing and ratification of the EVFTA.
Overall, both the EU and Vietnam are going towards the right direction, while a dialogue mechanism is important for both parties to deal with issues of disagreement.
At the meeting, Ngan said Vietnam is focusing on realizing its commitments made in the deal, adding that the National Assembly has legalized those commitments.
Ngan expected Lange’s support in making the EVFTA and the Investment Protection Agreement (IPA) between Vietnam and EU at the top of the agenda of the newly elected EP.
According to Ngan, as a member of the International Labor Organization (ILO), Vietnam has been working on revising the Labor Code for better protecting laborers’ interests and rights.
The revised Labor Code is schedule to be submitted to the National Assembly in May for review and admendment.
The National Assembly is willing to work with representatives of the INTA and other EP agencies to narrow the differences and reach a mutual perception, Ngan stated.
Vietnam has conducted a full spectrum lobbying plan to have the EVFTA ratified as soon as possible after the United States withdrew from the landmark Trans-Pacific Partnership deal in January 2017.
The EVFTA, if signed, would become the first trade deal between the EU and a developing country in Asia. In addition to the deal, the EU currently has two FTAs with Singapore – subject to approval, and Japan, which came into force in early February.
Under the Vietnam’s EVFTA commitment, the country would remove 65% of import tariffs for European goods right after the deal becomes effective. The remaining would be gradually removed in the next 10 years.
In return, the EU is committed to removing 71% of import tariffs for Vietnamese items, and the remaining in the next seven years.
Over the past ten years, trade turnover between the EU and Vietnam has increased 10-fold to US$53 billion in 2018. The EU is currently Vietnam’s third largest trading partner, while Vietnam is the bloc's 19th largest partner in the world, and the second largest in Southeast Asia, behind Singapore, according to the Vietnam Chamber of Commerce and Industry (VCCI).
