The trade agreement between the European Union and Vietnam officially enters into force

The European Commission announces that the EU-Vietnam trade agreement officially enters into force tomorrow, 1 August 2020.

This agreement represents the most comprehensive trade deal ever concluded between the Union and a developing country.

Regarding its content, it should be noted that in order to duly take into account the development needs of the Asian nation, a longer transition period (10 years) has been granted for the elimination of import duties on goods from the EU. Exceptions include certain key EU exports, such as pharmaceuticals, chemicals, and machinery, which will benefit from an exemption from import duties as soon as the agreement enters into force.

Furthermore, it is noted that within 3 years, agri-food products such as beef and olive oil will no longer be subject to duties, while for dairy products, fruit, and vegetables, this will take no more than 5 years.

With regard to sanitary and phytosanitary matters, a series of ad hoc provisions will allow for improved market access for European companies through more expeditious and transparent procedures. The agreement also contains specific provisions to address regulatory obstacles to EU car exports and ensures protection against imitation for nearly 170 traditional European food and drink products (such as Prosciutto di Parma, Roquefort cheese, and Porto and Jerez wines) recognised as geographical indications.

Exceptions include the geographical indications Asiago, Champagne, Feta, Fontina, and Gorgonzola, for which specific solutions have been agreed upon to address potential coexistence with previously registered trademarks or local usage.

The agreement also covers important issues such as the environment and social rights. In this regard, rigorous standards have been set for the protection of workers, the environment, and consumers.

Overall, the agreement will eventually eliminate duties on 99% of all goods traded between the two parties and will facilitate the entry of European companies into the Vietnamese market; they will be able to invest and compete for public procurement contracts on an equal footing with local firms.

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