Eu Vietnam Trade Agreement Ratified

The European Union (EU) and Vietnam have officially ratified a historic free trade agreement that promises to boost trade and investment between the two regions. The European Parliament overwhelmingly approved the deal in February 2020, and Vietnam’s National Assembly followed suit in June 2020.

The EU-Vietnam trade agreement is the most comprehensive agreement of its kind that the EU has signed with a developing country. It removes almost all tariffs on goods traded between the two regions over the next 10 years, thus opening up new opportunities for businesses on both sides. The deal also includes provisions on intellectual property rights, labor standards, and sustainable development.

Vietnam’s economy has already experienced strong growth in recent years, and the trade agreement is expected to accelerate this trend. The EU is Vietnam’s second-biggest export market after the US, and the agreement will make it easier for Vietnamese businesses to sell their products and services to European customers. On the other hand, European exporters will gain better access to Vietnam’s fast-growing market of almost 100 million people.

The agreement should also bring benefits for consumers in both regions. With tariffs reduced or eliminated, businesses on both sides will be able to offer cheaper goods to their customers. For example, European consumers could save money on products such as textiles, footwear, and seafood from Vietnam, while Vietnamese consumers may see lower prices on European dairy products, wine, and machinery.

The EU-Vietnam trade agreement is also significant from a geopolitical perspective. It comes at a time when global trade tensions are rising, and the world is becoming increasingly multipolar. By strengthening economic ties with Vietnam, the EU is sending a signal that it remains committed to free trade and multilateralism.

In conclusion, the EU-Vietnam trade agreement is a positive development for both regions. It will boost trade and investment, create new business opportunities, and benefit consumers. Moreover, it is a clear demonstration of the EU’s commitment to free trade and a rules-based international order. The agreement is expected to enter into force in the coming months, after both sides complete their internal legal procedures.