Is Vietnam the first country in the Asia-Pacific region to establish free trade relations with the EU?

The EU Parliament passed the Vietnam-EU Free Trade Agreement (EVFTA) on February 12, 2020. Vietnam has become the first developing country in the Asia-Pacific region to establish free trade relations with the European Union. Vietnamese economists have compared this free trade agreement to a "highway connecting Vietnam and the European Union." This proves Vietnam's important geographical and political status and role in the region. ? Currently, the EU is Vietnam’s second largest export market after the United States and an important source of Vietnam’s trade surplus. In 2019, Vietnam exported US$41.48 billion to the EU and imported US$14.91 billion from the EU. Vietnam mainly exports clothing, footwear, agricultural products, etc. to the EU, and the EU exports mechanical and electrical equipment and medical products to Vietnam. After the free trade agreement takes effect, taking Vietnam's advantageous agricultural products as an example, the tariffs exported to the EU will be reduced from the current 5% to 20% to zero. For the textile and garment industry that is moving to Vietnam, 42.5% of taxes will be canceled by the EU, and the remaining taxes will be reduced within 3 to 7 years. Although Vietnam has high hopes for this free trade agreement, some Vietnamese experts and media pointed out that this highway to the EU is not free and requires adjustments to relevant domestic laws and management systems. Taking trade unions as an example, the EU requires Vietnam to allow workers to form independent trade unions, which is inconsistent with Vietnam's current trade union system. Although Vietnam has accepted the EU's request, the effectiveness and potential risks of independent trade unions remain to be seen. ?

In addition, not all goods manufactured in Vietnam can enjoy zero tariffs. According to the EU principle of origin, the raw materials of exported products must originate in Vietnam, the EU or other countries that have signed a free trade agreement with the EU. nation. A person in charge of a Vietnamese garment company told the media that currently the fabrics used in production are mainly imported from China and other places. To enjoy zero tariffs from the EU, companies cannot use imported fabrics and must order domestically. However, Vietnam’s existing fabrics There are only a handful of printing and dyeing companies.