Vietnam Europe Free Trade Agreement

The temporary importation and export of repaired goods is duty-free. This will ensure a level playing field and competition, especially for specialized maintenance services such as aircraft. The TFUE is expected to remain in force until the end of the year, while the UK (UK) is still in a customs union with the EU. The situation from 1 January 2021 will depend on the decision of the United Kingdom and Vietnam to agree on their own bilateral agreement, although this is unlikely in the short term, given that Vietnam is not one of the UK`s priority free trade countries (including the EU, the United States, Japan, Australia and New Zealand). The question of a possible diagonal or extended accumulation of origin between the UK, the EU and Vietnam (i.e. when parts of countries not participating in a free trade agreement. B, for example the United Kingdom from 2021, can be considered “original products” and thus help to satisfy the preferential rule of origin of a product) depends on the willingness of the three parties to approve it. At present, the EU does not foresee any possibility of such an extended accumulation in its free trade agreements with the United Kingdom for a free trade agreement. The free trade agreement establishes a framework for resolving future disputes between the EU and Vietnam over the interpretation and implementation of the agreement. It applies to most areas of the agreement and is faster and more effective in many respects than the dispute settlement mechanism in the WTO.

The European Union of Vietnam (EVFTA) free trade agreement came into force on 1 August and paved the way for increased trade between the EU and Vietnam. The free trade negotiations were officially concluded in Brussels in December 2015. The signing has yet to take place for the free trade agreement to enter into force. The legal review of the negotiated text is under way and is accompanied by a translation into the Vietnamese language and the official languages of the EU. The European Commission will then present a proposal for approval of the agreement to EU heads of state and government to the Council of Ministers. After the green light from the Heads of State and Government, the free trade agreement will be sent to the European Parliament (EP) to launch the ratification procedure. Currently, the text is expected to be sent to the EP for approval in the second half of 2018. The Vietnamese pharmaceutical market remains attractive to EU investors. With the expiry date of the free trade agreement, about half of EU drug imports will be immediately exempt from tariffs, with the rest exempt from tariffs after seven years. Foreign pharmaceutical companies are allowed to create a company that imports drugs authorized to be sold in the Vietnamese market. These companies may sell drugs they have imported to Vietnamese distributors or wholesalers.

Entities can also create their own storage locations. As part of the EUFVTA chapter on competition, Vietnam and the EU agree to maintain competition law and ensure that the relevant authorities apply these laws in a non-discriminatory and transparent manner. In order to remedy anti-competitive behaviour and promote procedural fairness, the agreement requires the parties not to enter into agreements that could restrict or distort the control or competition of a potential merger and acquisition.