At the request of a party, fabrics originating in a country with which the European Union and Vietnam have a preferential trade agreement may, under certain conditions, be considered products originating in the European Union or Vietnam when processed or processed in one of the products listed in Appendix V of this protocol or incorporated into one of the products retained in that part. Prior to the trade agreement, the Vietnamese would impose import duties of up to 50% on EU agri-food exports and up to 78% on industrial products such as motor vehicles and machinery. Under the trade agreement, Vietnam is legally obliged to gradually reduce its tariffs within three to ten years after August 2020. With regard to medicines and medical devices, the agreement guarantees the use of international standards, practices and guidelines developed by the trade agreement and covers a wide range of services and provides additional market access for service providers and investments in manufacturing. Under the agreement, public procurement will be as transparent and fair to procedures as in EU trade agreements with developed and more advanced developing countries. Canada`s recent agreement with Vietnam is significantly weaker than that of its major trading partners, China and South Korea. Canada accounts for only 0.2 per cent, or $395 million of Vietnamese imports, while China accounts for 31 per cent or $60 billion of Vietnamese imports and South Korea 17 per cent, or $32.6 billion in Vietnamese imports. The EU and Vietnam have strict laws on food safety, animal and plant health. The trade agreement aims to facilitate the export of agricultural products while guaranteeing the level of protection required for human, animal and plant health.
Strengthening dialogue and trade should, in due course, lead to greater trust between the parties. These are some of the main benefits of this part of the agreement. A projected $4.2 billion boost to Canada`s long-term economy is the expected outcome. When the current agreement comes into force, Canada will be the only G7 nation with free access to free trade in North America, Europe and the Asia-Pacific region. The agreement improves the legal framework for enforcement at all levels. Vietnamese authorities and customs officers are also given more powers and better tools to deal with violations. The provisions of the agreement on plant hygiene and protection and their implementation will benefit from the added value of harmonised EU health legislation. The agreement will facilitate the adoption of a single and transparent framework for authorising EU food exports to Vietnam.
Vietnam is committed to applying the same import requirements to similar products from all EU Member States. This is an important step in speeding up the approval of EU export applications and avoiding discriminatory treatment. The conditions set out in the CPTPP create a framework for trade that allows for better market access between Member States. Once the agreement is ratified, the abolition of tariffs abroad will have the potential to stimulate foreign activities in Canada if implemented strategically. The EU and Vietnam will protect known trademarks in accordance with the recommendations of the trade agreement, which bring Vietnam`s copyright legislation in line with that of the EU and other countries, so that broadcasters and organisers of public performances pay royalties to phonogram producers and performers. The trade agreement is likely to lead to further growth in trade between the EU and Vietnam in this sector. Canada negotiates bilateral free trade agreements with the following countries and trading blocs: For the EU, Vietnam is the 17th largest trading partner in the world and the second largest in Southeast Asia.