After over two and a half years of talks, a free trade deal agreement was recently inked between the European Union (EU) and Vietnam. A first of its kind agreement between the EU and a developing country, this deal will remove almost all tariffs on goods traded between the two economies. Vietnam will also do away with almost all of its export duties.
The FTA tackles other trade-related issues such as public procurement, regulatory issues, competition, and Geographical Indications, apart from eliminating tariffs and non-tariff barriers. Moreover, it also has an in-depth chapter on trade and sustainable development, which covers labour and environmental matters, with special attention to corporate social responsibility and fair and ethical trading schemes.
In 2014, imports into the EU from Vietnam were S$24 billion totally. Key goods included: footwear, textiles and clothing, among others. The state-run Vietnam National Textile and Garment Group, Vinatex, suggests that the value of Vietnam’s textile and garment exports reached $12.18 billion in the first six months of this year, . a rise of 10.3 per cent on the same period a year ago.
The deal between the EU and Vietnam is welcomed by the Federation of the European Sporting Goods Industry (FESI). FESI also notes that the FTA would ensure better market access for high quality European sports equipment and it would also support the sourcing of sporting goods in Vietnam. Vietnam is one of the top sourcing countries for sporting goods globally. Alberto Bichi, FESI secretary general says employment will be created for thousands with FTA between the EU and Vietnam.
