The EVFTA and EVIPA are standard and most ambitious
agreements concluded between the EU and a developing country.
Once the EVFTA takes effect, over 99 percent of tariff on
goods from both sides will be lifted. Vietnam will remove 65 percent of import
tariff on goods from the EU. Remaining tariffs will be removed in the next
decade.
Besides offering significant economic opportunities, the trade agreement
ensures that trade, investment and sustainable development go hand in hand, by
setting the highest standards of labour, safety, environmental and consumer
protection.
Meanwhile, the EVITA will help enhance the EU’s investment
in Vietnam.
Vietnam is the EU’s second largest trade partner in ASEAN with
a trade value of nearly 50 billion EUR (about 56 billion USD).
The FTA was initiated in June 2012 and negotiations on the
deal concluded in 2015.
After legal review, the EU proposed dividing the FTA into
the EVFTA and EVIPA in September 2017.
After being signed, the two deals will be submitted to the European Parliament (EP)
for consent.
The EVFTA is expected to be approved by the EP later this
year or early 2020.
Meanwhile, it will take at least two years for the EVIPA to
be ratified by the EP and member parliaments.
(Source: VNA)