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EU and Vietnam sign FTA

Jul 1, 2019 European Union
EU and Vietnam sign FTA
On the 30th of June, the European Commission and the Government of the Socialist Republic of Vietnam announced the signature of the new Free Trade Agreement and the Investment Protection Agreement
Following the implementation of the Vietnam – EU Comprehensive Partnership and Cooperation Framework Agreement (PCA), these agreements mark a milestone in the relations of both areas, as the new agreements will promote further economic development and reinforce trade and investment ties between Vietnam and the European Union (EU).

The two parties, in a joint press release, announced the agreement "as the most ambitious free trade deal between the EU and an emerging economy to date". The new deals are based on the joint commitment of the two sides to open fair and rules-based trade liberalisation and economic integration.

Following the signatures, the agreements will be presented on the Vietnamese side to the National Assembly for ratification and on the EU side to the European Parliament for its consent, as well as to the respective national parliaments of the EU Member States in the case of the Investment Protection Agreement.

"Both sides share a strong commitment to the effective implementation of both agreements and are cooperating closely to ensure full compliance with the obligations under these agreements. The EU will support Vietnam through technical assistance in order to define and follow up on an implementation plan to facilitate the necessary reforms and adjustments, including in areas such as sanitary and phytosanitary measures and non-tariff barriers", can be read in the joint declaration.

The agreements now signed go well beyond the economic benefits, as they aim at promoting sustainable development in both regions. In this context, both sides agree on the importance to ensure the implementation of the obligations under the Trade and Sustainable Development chapter of the trade agreement. The EU welcomed the recent steps taken by the National Assembly of Vietnam on labour issues, namely the ratification of ILO Convention 98 on Collective Bargaining and the plan to adopt the revised labour code at its next session in the autumn of 2019. The EU also welcomes the plan of the Government of the Socialist Republic of Vietnam to submit the ILO Convention 105 and 87 to the National Assembly of Viet Nam for the ratification procedures. 

The agreements are an integral part of the framework established by the EU-Vietnam Partnership and Cooperation Framework Agreement, which governs our overall bilateral relations in various areas, including development cooperation, peace and security, trade and investment, judicial cooperation, social affairs, good governance, rule of law and other issues of common interest.

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