The EU and Vietnam Free Trade Agreement (EVFTA) is a landmark agreement that aims to boost economic growth and create new opportunities for businesses in both regions. The agreement was signed on June 30, 2019, and has been in effect since August 1, 2020.
The EVFTA is the most comprehensive and ambitious trade agreement that the EU has ever concluded with a developing country. It aims to eliminate nearly all tariffs on goods traded between the two regions and includes provisions on non-tariff barriers, rules of origin, intellectual property rights, and sustainable development.
The agreement is expected to increase trade between the two regions by more than 50% over the next few years. The EU is Vietnam`s second-largest trading partner, and Vietnam is the EU`s fifth-largest trading partner in the ASEAN region. The EVFTA is expected to provide a significant boost to trade and investment between the two regions.
Under the EVFTA, nearly all customs duties on goods traded between the EU and Vietnam will be eliminated over the next ten years. The agreement will also eliminate or reduce tariffs on exports of EU agricultural products, such as beef, pork, wine, and dairy products. Vietnam will also eliminate or reduce tariffs on exports of its products to the EU, such as textiles, footwear, and electronic products.
The agreement also includes provisions on sustainable development, which aim to ensure that the benefits of the agreement are shared by all. The EU and Vietnam commit to promoting labor rights, environmental protection, and good governance.
The EVFTA is also expected to provide a significant boost to investment between the two regions. The agreement includes provisions on investment protection, dispute settlement, and market access for EU and Vietnamese companies.
The agreement is expected to benefit both regions in many ways. The EVFTA will help to increase economic growth, create new jobs, and boost trade and investment. It will also help to strengthen the relationship between the EU and Vietnam and promote sustainable development.
In conclusion, the EU and Vietnam Free Trade Agreement is a groundbreaking agreement that will have a significant impact on the economies of both regions. It will help to increase trade and investment, promote sustainable development, and strengthen the relationship between the EU and Vietnam. With the EVFTA in place, the future looks bright for businesses in both regions.
