The free trade agreement is also worth it for the Vietnamese side. 71% of all import tariffs on Vietnamese products are immediately abolished. After another seven years, 99% of tariffs will be eliminated to strengthen the economy on both sides. This will result in a significant increase in Vietnamese exports to the EU. The EU and Vietnam have agreed to strengthen the disciplines of the WTO Agreement on Technical Barriers to Trade (OTC). In particular, Vietnam is committed to strengthening the enforcement of international standards in the development of its regulations. The agreement also contains a chapter on health and plant health measures (SPS), which specifically aims to facilitate trade in plant and animal products, in which the parties have agreed on a number of important principles such as regionalisation and the recognition of the EU as a single unit. These provisions will facilitate access to the Vietnamese market by EU companies that manufacture a large number of products, including electrical appliances, information technology and food and beverage products. Singapore`s history could be an example from which Vietnam can learn.
In 2018, however, Harvard University economist Dani Rodrik said in the Journal of Economic Perspective that if these free trade agreements increase the volume of trade, the distribution of these benefits is another matter: ”A trade agreement that is covered by another set of special interests can make things worse as easily as it makes them better.” He also wrote that ”such an agreement can distract us from the effective outcome, even if it uses the cover of a free trade agreement and increases the volume of trade and investment. Rodrik stressed that the effects of free trade agreements are fundamentally uncertain and that protectionism is depending on them. This agreement will enable EU exporters and investors to access a fast-growing market of 90 million people and consolidate their presence in one of the world`s most dynamic regions. The central element of the TUE IS The near-total abolition of tariffs between the EU and Vietnam, including the abolition of more than 99% of tariffs in ten years. Immediately after entry into force, 65% of EU exports (by product type) to Vietnam and 71% of Vietnamese exports to the EU will be exempt from tariffs. Tariffs on other EU products will be progressively liberalised over a period of time and tariffs on some Vietnamese products will be reduced over a seven-year period. The TFUE also provides for tariff quotas for some remaining agricultural products, for which import duties are not phased out. The Free Trade Agreement between the European Union and Vietnam (EVFTA) is the second free trade agreement between the EU and an ASEAN country after Singapore. Vietnam is the second country to have signed trade and investment agreements in the region. A new pioneering free trade agreement between Vietnam and the European Union came into force on 1 August 2020. With regard to intellectual property rights, Vietnam is committed to achieving a high level of protection that goes beyond the standards of the WTO TRIPS agreement.
This agreement better protects innovation, artwork and trademarks in the EU from illegal copying, including through stricter enforcement rules.