Vietnam, EU sign landmark free trade treaty

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Vietnam, EU sign landmark free trade treaty

On Sunday, the 30th of June 2019, the European Union and Vietnamese department of Commerce had issued a joint statement saying that the two sides had reached a landmark free trade deal, three years after the negotiations had stalled back in the 2015s.

In point of fact, Vietnam-EU trade treaty, had been the first trade pact of EU with any developing nation so far, which would be cementing the way for a tariff reduction of up to 99 percent of goods between the Southeast Asian country and the EU, a 28-nation pact of European countries excluding United Kingdom.

Nonetheless, the treaty still requires approval of EU parliament, which might not come easy as some lawmakers appeared to be concerned over the terrible human right history of Vietnam. However, describing the EU-Vietnam Free trade agreement (EVFTA) as “the most ambitious free trade deal ever concluded with a developing country”, European Union trade commissioner Cecilia Malmstrom and Vietnam’s minister of industry and trade Tran Tuan Anh had signed the treaty in Hanoi, the capital city of Vietnam.

Besides, the free trade treaty would eliminate 99 percent of tariffs for Vietnam, however some would be expired after a 10-year period and some products including agricultural goods would be limited by quotas. EU has been the second-largest export market of Vietnam, behind United States, mostly for garments and footwear products,