EU, Vietnam reach agreement on free trade

Th e EU and Vietnam have reached an agreement in principle for a free trade agreement (FTA), after two and a half years of intense negotiations.


Th e EU and Vietnam have reached an agreement in principle for a free trade agreement (FTA), after two and a half years of intense negotiations.

Following a conversation between EU Trade Commissioner Cecilia Malmström and Vietnamese Minister of Industry and Trade Vu Huy Hoang, all issues of substance have been agreed, and both sides have reached a mutually benefi cial and balanced package.

In 2014, EU-Vietnam trade in goods was worth over €28.2 billion, with €22.1 billion of imports from Vietnam into the EU and €6.2 billion of exports from the EU to Vietnam.

Th is agreement will remove nearly all tariff s on goods traded between the two economies. “We have a deal,” Malmström said. “This finely balanced agreement will boost trade with one of Asia’s most dynamic economies. It sets a new, better and modern model for Free Trade Agreements between the EU and developing countries and establishes a good standard for the trade relationship between the EU and Southeast Asia as a whole” Malmström said.

“Vietnam is a growing economy and once this agreement is up and running, it will provide signifi cant new opportunities for companies on both sides, by increasing market access for goods and services. Over 31 million jobs in Europe depend on exports, so having easier access to a growing and fast developing market like Vietnam, with its 90 million consumers, is great news.