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16 Global Trade & Cust. J. 39 (2021)
The Free Trade Agreement between the European Union and Vietnam

handle is hein.kluwer/glotcuj0016 and id is 39 raw text is: The Free Trade Agreement Between the European Union and Vietnam Alessandro Fruscione* The European Union and Vietnam have signed a far-reaching Free Trade Agreement, which came into force on 1 August 2020 and represents a turning point in the trade relations that the Union has with third countries. In addition to providing for a substantial reduction in duties, partly with immediate effect and partly over the next few years, the agreement affects non-tariff barriers, substantially simplifying the documentation needed for customs operations (in particular in Vietnam) and the certifications required for certain types of products (for example, for pharmaceuticals). The Agreement also limits the adoption of anti-dumping and countervailing duties, specifying that trade remedies should be enforced in full compliance with the relevant requirements of the World Trade Organization and should be based on a fair and transparent system. The products originating from the two contracting parties will benefit from the duty exemptions and reductions upon production of a proof of preferential origin, represented, up to a value of 6,000 euros, by the exporter's invoice declaration and, above this amount, by an exporter registered on the REX (Registered EXporter) system. The protection of intellectital property, 'Made in' and geographical indications is ensured, with specific provisions aimed at preventing fraud. Along with the Free Trade Agreement, the Union and Vietnam have also signed an Investment Protection Agreement, whose main point is the provision for the creation of an independent and qualified court to settle disputes between investing companies and the state. Keywords: Agreements, Vietnam, Preferential, REX, protection, investments, ASEAN, Exports, Made in, ICS I INTRODUCTION On 1 August 2020, the Free Trade and Investment Protection Agreement signed between the European Union and Vietnam came into force,' representing a first, but certainly significant, change of pace in inter- regional trade relations between the EU and Southeast Asia. It is no coincidence that last February's Resolution of the European Parliament which gave the green light to the Agreement defines it as the 'most modern, comprehensive and ambitious agreement ever concluded between the EU and a developing country' and 'a strong signal in favour of free, fair and reciprocal trade, in times of growing protectionist tendencies and serious challenges to multilateral rules-based trade'.2 The agreement will help in identifying trade standards in Southeast Asia and could lead to a future multilateral trade and investment agreement with Member States of the Association of Southeast Asian Nations (ASEAN), with a significant change in existing relationships, hitherto characterized by the adoption of protectionist and anti-dumping measures. The agreement is particularly interesting due to the numerous opportunities it provides to companies in the European Union and Vietnam; such opportunities are bound to grow over the years as the different parts of the agreement are applied. Vietnam - whose economy is booming due also to new and dynamic economic development models adopted - is the second largest trading partner of the European Union among the ASEAN Member States after Singapore, with trade in goods reaching a value of 42.5 billion USD in 2018. EU exports to the country have a growth rate of 5-7% per year, with a significant leap in 2018 (+ 13.1%, to 13.8 billion USD), but the EU's trade deficit remains quite considerable (-28.7 billion USD in the year). The European Union is the second most important market for Vietnam and is a key destination for many Attorney-at-law in Rome, customs law expert, partner of Studio legale Fruscione; Email: a.fruscione@studiofruscione.it. The Agreement was signed in Brussels on 30 Mar. 2020 and was published on the Official Journal of the European Union, Series L, n. 186 of 12 June 2020. Its implementation was published on the Official Journal of the European Union, Series L, n. 207 of 30 June 2020. 2 Verbatim, non-legislative resolution of the European Parliament of 12 Feb. 2020, considering s. 1 and s. 6. 39 Global Trade and Customs Journal, Volume 16, Issue I @ 2021 Kluwer Law International BV, The Netherlands

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