eu-vietnam free trade agreement strong signal in times of protectionismPosted at 14:45h abroad, Economy, Europe, undertake by Open VLDThe European Parliament today debates a new free trade agreement between the European Union and Vietnam.

The agreement is the most ambitious trade and investment agreement ever with a developing country and is an important stepping stone for further cooperation in the region. The vote on the agreement will take place tomorrow. Mep Hilde Vautmans (Open VLD, Renew Europe) is in favour of the agreement: "After Singapore, Vietnam is our largest trading partner within ASEAN. The agreement will eventually eliminate more than 99% of all charges and will also remove many non-tariff barriers, making it easier for our SMEs to export to Vietnam. The agreement would increase annual exports of European companies towards Vietnam by EUR 8 billion by 2035 and many European products will also be protected with geographical indication. In times of protectionism, this agreement is a strong signal for free trade. It would be unwise not to bet on the Asian market, knowing that a significant share of future economic growth in Asia will be generated." According to Vautman's opportunities, the agreement also offers opportunities: "Vietnam opened its borders to Belgian apples and pears a few years ago, but exports are still very limited at the moment. It is normal for this new market to need time to grow. We therefore strongly focus on promoting our products there. The free trade agreement with Vietnam could be a good extra boost because it will undoubtedly make trade easier," says Vautmans." The importance of this agreement goes beyond the strictly economic" continues Hilde Vautmans. "We must dare to recognise that in terms of people – and labour rights Vietnam still has a way to go. Nevertheless, we believe that this agreement can be a catalyst for reform. We are already seeing this, because the negotiations have made progress on Vietnam in several areas. For example, child labour has fallen sharply since the start of the negotiations, Vietnam ratified some fundamental international agreements and Vietnam will ratify and integrate fundamental ILO conventions into its labour law in the future. With this agreement, the EU can therefore have a positive impact on Vietnam. Strengthened dialogue and increased engagement will allow us to exert pressure in the positive sense and ask Vietnam to account if it does not fulfil the obligations of the agreement. Without the agreement, we risk pushing Vietnam into the arms of China. And that is, to say the least, not a good alternative."