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International Relations, PUBLICATIONS

EU-Vietnam Free Trade Agreement [International Agreements in Progress]

Written by Martin Russell (3rd edition, updated on 5.10.2018),

EU-Vietnam Free Trade Agreement

© De Visu / Fotolia

The free trade agreement (FTA) negotiated in 2015 with Vietnam has been described as the most ambitious deal of its type ever between the EU and a developing country. Not only will it eliminate over 99 % of customs duties on goods, it will also open up Vietnamese services markets to EU companies and strengthen protection of EU investments in the country.

According to European Commission figures, the FTA could boost Vietnam’s booming economy by as much as 15 % of GDP, with Vietnamese exports to Europe growing by over one third. For the EU, the agreement is an important stepping stone to a wider trade deal with south-east Asia. However, Vietnamese manufacturing sectors may suffer from competition with the EU. NGOs and the European Parliament have also criticised the Commission for pursuing closer ties with a politically repressive regime, although the deal includes some safeguards against negative outcomes.

Conclusion of the FTA was delayed by a 2017 opinion of the European Court of Justice. The Court ruled that the EU does not have the power to conclude agreements on certain investment-related issues on its own; therefore, the text as it then stood would also have to be ratified by the 28 Member States.

To enable at least some parts of the FTA to be ratified more speedily at EU level, in August 2018 the EU and Vietnam agreed to take provisions on investment, for which Member State ratification is required, out of the main agreement and put them in a separate Investment Protection Agreement (IPA). Both the FTA and IPA are currently in translation and are expected to be formally submitted to the Council in late 2018, possibly enabling the FTA to come into force in the second half of 2019.

Free trade agreement between the European Union and Vietnam
Committee responsible: International Trade (INTA)
Rapporteur: Jan Zahradil (ECR, Czech Republic)

international agreements in progress - step negotiation


Read the complete briefing on ‘EU-Vietnam free trade agreement‘ on the Think Tank pages of the European Parliament.


Figure 1 – EU-Vietnam trade – facts and figures

EU-Vietnam trade – facts and figures

Discussion

5 thoughts on “EU-Vietnam Free Trade Agreement [International Agreements in Progress]

  1. Postupné odbúranie regulácie zahraničného obchodu pomocou colných sadzieb je v dobe globalizácie správny asi nevyhnuteľnosť. Neustále zrýchľovanie toku tovaru zo zahraničia, zvyšovanie počtu schválených hospodárskych subjektov ( AEO) pri colnom prejednávaní, prinútilo politikou, vlády hľadať “náhradnú” pracovnú náplň colným úradníkom. Ak k tomu pridáme večný boj o investície a investorov, vznikol priestor pre zánik colnej kontroly – fyzickým spôsobom a zaniklo odhaľovanie klasickej kriminality ktorá sa pácha nedodržiavaním colných predpisov. Cigarety, drogy, falošné výrobky sa síce odhaľujú ale tieto komodity nie sú všetky zaujímavé z colného sadzobníka.

    Ak si zoberieme že dva zo štyroch základných pilierov vlastných finančných zdrojov Európskej únie sú clo a DPH, tak práve tieto sú krátené absenciou colnej kontroly.

    Uvedený výpadok Európska komisia chce vyriešiť navŕšením ďalšieho piliera vlastných finančných zdrojov HDP. Z 1 % sa chcú dostať na 1,1 – 1,2 % HDP všetkých členských štátov EÚ. K tomu ešte zaviesť nové dane aby sa rozpočty naplnili.

    Uvedený spôsob je úradnícky najjednoduchší, najrýchlejší a hlavne to zaplatia všetci obyvatelia a podnikatelia EÚ.

    Odhaľovanie krátenia ciel a rozpočtov je ten náročnejší spôsob. Čo by sa potom ukladalo do daňových rajov ??

    Podľa Osobitných správ a údajov z Euro-statu som analýzou zistil : ročne uniká pri dovoze tovaru do EÚ z tretích krajín na cle, DPH, spotrebných daniach, dani z príjmu právnických osôb viac ako
    499 000 000 000 € . Pre predstavu je to 3,4 násobok rozpočtu EÚ na rok 2018.

    S uvedenou situáciou som oboznámil skoro všetky relevantné inštitúcie v EÚ. Nikto tomu nechce venovať pozornosť – úradníci zvýšia radšej príspevky, zavedú nové dane !

    My obyvatelia máme tiež v tomto chaose dôležitú úlohu : musíme to zaplatiť !

    Miroslav Jurčo
    colný inšpektor vo výslužbe

    Podrobnosti na uvedenom blogu.

    Like

    Posted by Miroslav Jurčo | February 20, 2018, 10:39

Trackbacks/Pingbacks

  1. Pingback: Vietnam Free Expression Newsletter No. 8/2018 – Week of February 19-25 – THE 88 PROJECT - February 26, 2018

  2. Pingback: Đối Thoại Điểm Tin ngày 22 tháng 2 năm 2018 | doithoaionline - February 23, 2018

  3. Pingback: Free trade agreement with EU will hurt manufacturing industry in Vietnam – Vietnam Travel & Trade Portal - February 21, 2018

  4. Pingback: EU-Vietnam Free Trade Agreement [International Agreements in Progress] | Vatcompany.net - February 20, 2018

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