European Parliament Committee on International Trade (INTA) chair Bernd Lange has said that much remains to be done in the next eight to nine months before the EU and Vietnam can sign a comprehensive free trade agreement on which official negotiations were closed in late 2015.
Speaking with the media in Hanoi last Friday, Lange said the EU-Vietnam Free Trade Agreement (EVFTA) could be signed in mid-2018 if the remaining issues are all solved.
The European Commission will send relevant documents to the European Parliament for review and ensure that the commitments in EVFTA are specific because they are the basis for members of the parliament to decide to whether adopt EVFTA or not.
According to Lange, Vietnam will have to solve three main issues before the signing of EVFTA. First, Vietnam has not ratified three of eight conventions of the International Labor Organization which ensure a healthy work environment and benefits for workers.
Second, Vietnam will have to link environmental protection with economic development. And finally, it should allow social organizations, non-governmental organizations and consulting teams to assist the Government in the process of implementing EVFTA.
Lange said these are international practices and regulations that have been widely accepted to ensure equal trade internationally and that the European Parliament will refer to these principles to make decisions.
At a meeting with Lange on September 14, Prime Minister Nguyen Xuan Phuc said Vietnam attached importance to cooperation with the EU. The signing of EVFTA will be a remarkable milestone and bring bilateral relations to a higher plane, he noted.
Phuc asked for continued support from INTA and Lange to facilitate the signing and ratification of EVFTA.
Phuc said Vietnamese ministries and negotiators would closely work with the EU and give top priority to completing procedures for the signing of the agreement.
The Minister of Trade and Industry and the EU trade commissioner signed a declaration on the official closure of negotiations on EVFTA on December 12, 2015, after three years of talks with 14 official sessions and many others at ministerial, delegation and technical-group levels.
The main contents include product based trade, origin rules, ports and facilitation for trade, food safety and hygiene methods and sanitation performance standard, technical barriers in trade, service trade, investment, trade protection, competition, government businesses, government purchases, intellectual property, sustainable development, cooperation and capacity building.
Right after the pact comes into effect, the EU will exempt Vietnam’s exports from about 85.6% of all tax lines, about 70.3% tax turnover. After seven years of implementation, the EU will eliminate 99.2% of import tax.
For textile, footwear and fishery (except canned tuna and fish balls) from Vietnam, the EU will erase all import taxes in seven years after the pact goes into force.
The EU will give Vietnam a significant tax quota for milled, unmilled and fragrance rice. The imported rice with this tax quota will not be taxed. With products made from rice, the EU will bring the import tax to 0% after seven years.
For honey, the EU will remove tax right after the agreement takes effect and no quota will be applied. All fresh greens, processed vegetables, fruits, bags, plastic products, ceramics and glass products, most taxes will be exempted as soon as the pact comes into force.
For EU exports, Vietnam will reduce import tax on cars and motorbikes to 0% after nine or 10 years but only motorbikes with cylinder capacity of more than 150cc will have a tax exempt route of seven years. Vietnam agreed to exempt import tax on wine, alcohol, beer, pork and chicken after 10 years.
On export taxes, Vietnam agreed to erase most export taxes for certain routes and keep certain tax brackets for important products, including oil and coal.
Regarding trade service and investment, Vietnam and the EU agreed to create an open investment environment, and trade activities of businesses from both sides convenient.
The areas where Vietnam will open for EU investors include specialist areas, financial services, communication services, transportation services, distribution services.
thesaigontimes.vn
