Debate: Conclusion of the EU-Viet Nam Free Trade Agreement - Conclusion of the EU-Viet Nam Free Trade Agreement  - EU-Viet Nam Investment Protection Agreement - EU-Viet Nam Investment Protection Agreement
Date: TUESDAY, 11 FEBRUARY 2020
Speaker: Phil Hogan
Language: EN

The agreements will further reinforce our already-strong trade and investment ties, and they will also provide an additional opportunity to strengthen the cooperation established under other EU instruments, for example on illegal logging or IUU (Illegal, Unreported and Unregulated) fishing. The agreements will strengthen our presence in Asia, following the ‘new generation agreements’ in force, such as those with Korea, Japan and Singapore. They will constitute an additional stepping-stone towards our engagement with the ASEAN region. The benefits of the agreements are many: preferential access to a vibrant economy of almost 100 million people; removal of non-tariff barriers for our exporters, which they currently face, for example, on cars, on wines, and spirits; harmonised sanitary and phytosanitary rules allowing for more predictable procedures; and removing access barriers for EU products. EU companies will have access for the first time to the Vietnamese public procurement market, and there will be protection of the European geographical indications such as Parmigiano-Reggiano, Champagne and Rioja wines. We will also have improved access to the Vietnamese market in services, such as finance, distribution, logistics or environmental services. The Investment Protection Agreement, similar to agreements with Singapore and Canada, includes the modern and reformed investment protection framework with an investment court system for the resolution of investment disputes. However, our agreements will be on trade and investment, and I’m aware that the European Parliament has put a strong emphasis on the trade and sustainable development chapter of the Vietnam Agreement. And I fully agree with this approach. It is encouraging to see the level of engagement by Vietnam in order to prepare for the implementation of their commitments, with important progress made even before the agreements are in force at all. The pressure that has been exerted by the European Union is bearing fruit, and I welcome this development. On labour issues, Vietnam adopted a new labour code last November, which recognises the principle of freedom of association at enterprise level. The revised code also includes new provisions on collective bargaining in line with the ILO Fundamental Convention, which was recently ratified by Vietnam. Vietnam has now ratified 6 out of the 8 ILO conventions, and it has a clear plan to ratify the outstanding conventions by 2021 and 2023. Work is also ongoing in Vietnam to eradicate child labour, with encouraging preliminary results unveiled recently by the ILO, which is a significant reduction of more than 40% since the last survey of 2012. So these developments are remarkable. But nevertheless, the Commission will scrutinise implementation to ensure that Vietnam effectively pursues this ambitious labour reform agenda. Vietnam has also started preparing the ground for the institutional structure that is foreseen under the Free Trade Agreement, including the involvement of independent civil society organisations, such as domestic advisory groups.  The human rights situation is certainly an area of concern in our relationship with Vietnam, but I remain convinced that constructive channels of communication, including the Annual Human Rights Dialogue, is the way to voice our concerns and address these shortcomings. So Madam President, I firmly believe that these agreements will create the best platform for further engagement and constructive dialogue with Vietnam in all fields. On the other hand, our failure to ratify the deal would leave the European Union with fewer options to pursue a reform agenda in Vietnam and would undermine the credibility of the European Union as a reliable partner.