Sunday, 30 June will see a significant development in the much awaited trade agreement between European Union (EU) and Vietnam. Cecilia Malmström, Commissioner for Trade and Romanian Minister for Business, Trade and Entrepreneurship Ștefan-Radu Oprea will be finally signing the deal.
The Council Of Ministers yesterday approved the agreement between EU and Vietnam paving way for the signature that will take place in Hanoi this Sunday.
Besides being beneficial for both European and Vietnamese firms, the agreement will also help promote respect for labour rights. Additionally, it will help foster the fight against climate change under the Paris Agreement.
Welcoming the decision, Jean-Claude Juncker, President, EU, said “After Singapore, the agreement with Vietnam is the second to be concluded between EU and a Southeast Asian country. It is a stepping stone to a greater engagement between Europe and Vietnam.”
While recognising Vietnam as a vibrant and a promising market, Cecilia Malmström, added “Besides the clear economic benefits, the agreement aims to strengthen the respect for human rights in addition to protecting environment and workers’ rights.”
The trade agreement will end almost all customs duties on goods traded between both sides in a progressive way that fully respects Vietnam’s development needs. The focus will also be on effectively implementing the Paris Climate Agreement.
The agreement also commits both sides to respect and effectively implement the principles of the International Labour Organisation (ILO) concerning fundamental workers’ rights.
With regard to the above, Vietnam recently ratified the ILO convention on collective bargaining and notified the EU of its intent to ratify the two outstanding fundamental ILO conventions latest by 2023.
Once the agreement is signed, it will be presented in the European Parliament for consent following which the agreement can enter into force.
