EU-Vietnam free trade greenlit, unprocessed shrimp to go duty-free from outset

EU commissioner for trade Cecilia Malmstrom and Romanian minister for business, trade, and entrepreneurship Stefan-Radu Oprea will sign the agreement on the EU’s behalf in Hanoi on June 30, the EU said. "The agreements are set to bring unprecedented benefits for European and Vietnamese companies, consumers and workers, while promoting respect for labor rights, environmental protection and the fight against climate change under the Paris Agreement."

Most importantly for the seafood sector, trade in non-processed shrimp will be liberalized once the agreements come into force. Pangasius trade will also be liberalized in three years, according to the EU's guide to the deals. President of the European Commission Jean-Claude Juncker welcomed the decision to green-light the deal. "After Singapore, the agreements with Vietnam are the second to have been concluded between the EU and a Southeast Asian country, and represent stepping stones to a greater engagement between Europe and the region. It is also a political statement by two partners and friends standing together for open, fair and rules-based trade."

Malmstrom said Vietnam is a "vibrant and promising market of more than 95 million consumers", and stressed that the deal aims to strengthen "respect for human rights as well as protecting the environment and workers' rights".

On June 20 the US Department of State, in its annual scorecard of countries' efforts to curb human trafficking, downgraded Vietnam from "tier two" to the "tier two watch list". The change, the department said, did not single out the country's sizable seafood sector. Instead, while it noted the Vietnamese government's ongoing efforts to increase training for consular officers, police and others to curtail trafficking, those efforts have not increased year-to-year.

Malmstrom did welcome Vietnam's recent ratification of the International Labour Organisation convention on collective bargaining, calling it an "excellent example of how trade agreements can encourage higher standards". Vietnam has notified the EU of its intention to ratify the two outstanding fundamental ILO conventions by 2023 at the latest. It is also in the process of reinforcing its labor legislation, the EU said.  Thanks to the new agreement, EU companies will also be able to participate in bids for procurement tenders in Vietnam on an equal footing with domestic companies.

Following the endorsement by the Council, the agreements will be signed by the EU and Vietnam and presented to the European Parliament for consent. Once the European Parliament has given its consent, the trade agreement can be officially concluded by the Council and enter into force, while the investment protection agreement will first need to be ratified by member states according to their respective internal procedures.

Source: Undercurrent News