The agreement contains significant commitments to reduce tariffs and phase out tariffs on exports by more than 99% in both directions. In addition, the free trade agreement also contains commitments to reduce non-tariff barriers. In this way, Vietnam will be more in line with international standards for motor vehicles and pharmaceuticals. As a result, EU products (already compliant with these standards) will not require additional testing and certification procedures in Vietnam. The agreement will also allow EU-based companies to compete with Vietnamese government orders (and vice versa) and facilitate their activity in Vietnam`s postal, banking, insurance, environmental and other services sectors. It also contains obligations to implement the core standards of the International Labour Organisation, such as the freedom to join independent trade unions that do not currently exist in Vietnam, and UN conventions such as the fight against climate change and the protection of biodiversity. NAFTA will improve market access by substantially reducing tariffs. Since the first day of this agreement, 65% of EU exports to Vietnam and 71% of EU imports from the country will be exempt from customs duties, while other products, with the exception of certain products, will be liberalised for EU and Vietnamese goods for a transitional period of up to ten and seven years. With this free trade agreement, Vietnam is the first trading partner to officially accept the “Made in EU” origin marking for non-agricultural goods, a development that testifies to the gradual integration of the European internal market and its international recognition. Among the EU sectors that were at the forefront of this agreement were the automotive sector, the pharmaceutical sector and the alcoholic beverage sector. In particular, EU exporting companies operating in these three sectors will benefit greatly from this free trade agreement, not only by eliminating tariffs, but also by improving overall regulatory cooperation between the two sides. 17.02.2020 On 12 February 2020, the European Parliament approved the EU-Vietnam Free Trade Agreement (NAFTA) and the Investment Protection Agreement (EVIPA). The former, adopted by 401 votes in favour, 192 against and 40 abstentions, ensure predictable preferential access to their respective markets.
The latter guarantees, by 407 votes in favour, 188 votes against and 53 abstentions, that foreign investors will be treated fairly and equitably and will replace the 21 bilateral investment agreements (NTBs) in force between Vietnam and the EU Member States. The EU-Singapore IPA is subject to ECJ Opinion 2/15. On 16 May 2017, the General Court decided that the Treaty fell within the exclusive competence of the EU, with the exception of certain provisions falling within a competence shared between the EU and its Member States. . . .