Photo: IEGPolicy. Green light for EU-Vietnam trade and investment deals
EU-Vietnam free trade and investment protection agreement is backed up by the Committee on International Trade. On January 21, 2020, the committee cast votes on the agreement in the European Parliament, in which the result was a green light by 29 votes to six with five abstains. On February 10, the vote at the Parliament’s Plenary Session will be held; if the agreement also wins enough consent from the full parliament, it can enter force on a provisional basis.
The trade deal’s main points were six-folds: removal of customs duties, non-tariff barriers, geographical indications on signature commodities, services, public procurement, and sustainable development. The two parties’ prospect is for the deal to be a win-win situation, from which they could gain economic progress and better relationship.
There has been only one nation from the Association of Southeast Asian Nations (ASEAN) to have a deal with the European Union, which is Singapore. This trade deal is salient, given that EU holds FTA with only handful of developing countries and thereby showing its inclination for a wider trade regime. With the rising trade tensions and uprising isolationism, the agreement is seen as a positive sign to the ASEAN region and to the global society. It is also expected that interactions between European and Asian nations will increase and expand their fields of exchange.
In addition, multiple resolutions were adopted in line with the two agreements. The trade committee’s demands from Vietnam, including on labour and human rights issues, as well as on the mechanism ensuring the enforceability of the sustainability clauses, was adopted by 29 votes for, nine against and two abstentions. In parallel, the trade committee also agreed by 26 votes for, seven against and six abstentions to an investment protection agreement providing an investment court system with independent judges to settle disputes between investors and state. Also, accompany resolution on ISDS passed by 27 votes for, seven against, and five abstentions.
[Sources]
Reuters. (2020, January 21). EU Lawmakers Give Initial Backing to Vietnam Trade Deal. Retrieved from https://www.nytimes.com/reuters/2020/01/21/business/21reuters-eu-vietnam-trade.html
Europarl. (2020, January 21). Vietnam free trade deal gets green light in trade committee: News: European Parliament. Retrieved from https://www.europarl.europa.eu/news/en/press-room/20200121IPR70703/eu-vietnam-free-trade-deal-gets-green-light-in-trade-committee
Benakis, T., & European Interest. (2020, January 21). EU-Vietnam FTA includes binding rules on climate, labour and human rights. Retrieved from https://www.europeaninterest.eu/article/eu-vietnam-fta-includes-binding-rules-climate-labour-human-rights/
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