Vietnam-European Union Free Trade Agreement

Vietnam-European Union Free Trade Agreement: What You Need to Know

In June 2019, the European Union and Vietnam signed a free trade agreement that aims to reduce tariffs and trade barriers between the two regions. The deal, known as the EU-Vietnam Free Trade Agreement (EVFTA), was ratified by the European Parliament in February 2020 and is expected to take effect in August 2020, pending final approval by Vietnam`s National Assembly.

So, what does this mean for businesses and consumers in both regions? Here`s what you need to know about the EVFTA:

1. Reduced tariffs on goods and services

The EVFTA will gradually eliminate tariffs on approximately 99% of all goods traded between the EU and Vietnam. This means that businesses in both regions will benefit from increased market access and reduced costs. In addition, the agreement will create new opportunities for trade in services and investment.

2. Improved intellectual property protection

The agreement includes provisions for stronger protection of intellectual property rights, including patents, trademarks, and copyrights. This will benefit businesses in both regions by providing greater legal certainty and preventing the unauthorized use of their intellectual property.

3. Labor and environmental standards

The EVFTA includes commitments for both regions to uphold labor and environmental standards. Vietnam has agreed to implement the International Labour Organization`s core conventions and to take steps to combat climate change. The EU, in turn, has agreed to provide technical and financial assistance to support these efforts.

4. Dispute resolution

The agreement includes provisions for resolving disputes between businesses and governments. This will help to ensure that businesses are treated fairly and that disputes are resolved in an efficient and transparent manner.

Overall, the EVFTA represents a significant step towards deeper economic integration between the EU and Vietnam. It is expected to boost trade, investment, and economic growth in both regions, while also promoting sustainable development and protecting intellectual property rights. As such, it is likely to have a positive impact on businesses and consumers in both Europe and Vietnam.