Posted on

Free Trade Agreement Between The European Union And Vietnam

The EU and Vietnam have agreed to strengthen the disciplines of the WTO Agreement on Technical Barriers to Trade (TBT). In particular, Vietnam is committed to making greater use of international standards in the development of its rules. The agreement also contains a chapter on sanitary and phytosanitary (SPS) measures specifically aimed at facilitating trade in plant and animal products, with the parties agreeing on some important principles such as regionalisation and recognition of the EU as uniform. These provisions will facilitate access to the Vietnamese market for EU companies that manufacture a large number of products, including electrical appliances, IT, food and beverages. Under the EUFTA Competition Chapter, Vietnam and the EU agree to maintain competition law and to ensure that competent authorities apply those laws in a non-discriminatory and transparent manner. In order to subordinate anti-competitive conduct and encourage the procedure, the agreement obliges the parties not to enter into agreements that could restrict or distort the examination or competition of a potential merger and acquisition. Such agreements illustrate the strength of EU-Vietnam relations and the opportunities Europe sees in the Southeast Asian country. The EU is achieving the long-term goal of increasing its influence and expansion in ASEAN markets based on Vietnam, and European entrepreneurs will have better access to one of the fastest growing southeast Asian economies after the agreements enter into force. .