Vietnam Eu Agreement
The TFUE covers a wide range of service sectors, including financial services, business professional services, communications services, postal services, construction and related engineering services, health and social services, environmental services and transportation services. Many of the concessions proposed by each party exceed those made under the WTO Trade in Services Agreement, including packaging services, building cleaning services, interdisciplinary research and development services and health care services. In some service sectors, such as telecommunications. B, the listening limits for foreign nationals are raised for EU investors in Vietnam. The agreement also requires Vietnam and the EU to include in the ANA the new future service obligations that each party concludes with third countries. The agreement provides for overall preferential treatment for both goods and services, recognition and protection of geographical indications for more than 200 products, liberalisation of procurement rules and obligations on cartels and mergers. It also contains provisions on sustainable development, including legally binding provisions on climate, labour and human rights. This is therefore the most comprehensive agreement to date between the European Union and each ASEAN member country. In 2017, the European Court of Justice found that certain provisions of the EU-Singapore Free Trade Agreement on non-direct foreign investment and investor-state dispute settlement are outside the EXCLUSIVE competence of the EU and must be ratified by the national parliaments of EU member states. To raise opposition to the trade agreement, the EU and Singapore agreed to divide the agreement into two separate agreements. Negotiations between the EU and Vietnam followed the same process. In 2018, the part of the investment agreement was divided into a separate investment protection agreement, EUVIPA.
The EU-Singapore PPI national ratification process is underway and is expected to take at least two years. 2 For more details, please see Appendix 9-B below. 3 Vietnam became an observer of the WTO GPA on 5 December 2012. On 8 June 2020, the National Assembly of Vietnam unanimously ratified the new free trade agreement between Vietnam and the European Union (“TFUE”) and the UE-Vietnam Parallel Agreement on Investment Protection (EUVIPA). It was preceded by the approval of both agreements by the European Parliament on 12 February 2020. The TFUE came into force on 1 August 2020. EUVIPA, which falls under the shared competence1 of the EU and its member states, is currently being nationally ratified by the regional and national parliaments of the EU Member States. The TFUE is discussed below.
We will treat EUVIPA separately if this agreement is ratified and enters into force. In 2015, the EU and Vietnam agreed on the principle of a comprehensive and ambitious trade and investment agreement. This free trade agreement (FTA) is the second largest in the ASEAN region after Singapore and is another part of the EU`s ultimate goal of a free trade agreement between the EU and ASEAN.