News Release
Pascal Lamy
October 12, 2004
No. 140/04
WTO-VIETNAM: EU AND VIETNAM CONCLUDE BILATERAL DEAL FOR
VIETNAM'S ACCESSION TO WTO
After a week of negotiations in Hanoi, today EU Trade
Commissioner Pascal
Lamy and Vietnamese Trade Minister Truong Dinh Tuyen concluded the bilateral
EU-Vietnam
agreement for Vietnam's accession to the WTO. The EU,
Vietnam's largest trading partner, is thus the first major partner to conclude
its bilateral deal with Vietnam, thereby giving a boost to Vietnam's accession
to the WTO.
Speaking from Hanoi EU Trade Commissioner Lamy said: "Today the
EU and Vietnam cement further their trade and economic relations. This deal brings
Vietnam a step closer to the international trade family, the World Trade Organisation,
where it belongs. It is highly symbolic that this deal is concluded in the margins
of ASEM meeting, which gathers the EU and Asian family together, a sign of the
EU's commitment to Asia."
Key elements of the bilateral deal
The deal concluded today covers the commitments that Vietnam will undertake
in goods and services once it accedes to the WTO. It will result in further opening
of the Vietnamese market, building on the reform efforts undertaken by Vietnam
over the last decade, while reflecting Vietnam's status as a low income developing
country.
The average tariff level that Vietnam will apply is around 16% for industrial
goods, 22% for fishery products and 24% for agricultural goods.
In services, Vietnam will be taking commitments in a large range of sectors
including transport, financial services, postal and courier, construction, distribution,
environmental, professional and other business services, telecommunications and
tourism. Commitments include cross border provision of services and commercial
establishment.
WTO accession is likely to anchor Vietnam into an international rules-based
trading system. It will enhance openness, transparency and predictability, which
are key to attracting foreign investment and provides a foundation for improved
economic governance.
WTO accession process
Vietnam applied to become a WTO member on 4 January 1995. The Working Party to
cover the multilateral aspects of the WTO accession of Vietnam was established
on 31 January 1995. Bilateral market access contacts were established shortly
thereafter. Topics under discussion in the Working Party include: agriculture,
the customs system, import licensing, national treatment, SPS and TBT, State trading,
trading rights and TRIPS. The last meeting of the Working Party took place in
June 2004.
As part of the WTO accession process, Vietnam is negotiating bilateral market
access deals with all interested WTO members. The EU being Vietnam's largest trading
partner, the EU-Vietnam bilateral agreement is a major step in the process of
Vietnams' WTO membership. Vietnam is currently conducting negotiations with the
US, Japan, China, Canada and Australia among others.
Once these bilateral negotiations have been concluded and the Working Party has
completed its work on Vietnam´s trade regime, the Working Party will determine
the terms of accession. These will appear in a report with a protocol of accession
containing the specific market access commitments (in tariff and services schedules)
of Vietnam.
Background: EU-Vietnam trade relations
The EU and Vietnam have a solid trade relationship. The EU is Vietnam's main trading
partner, accounting for more than 17% of its overall trade, followed by the US
(14%), Japan (13%) and China (11%).
Total trade in goods between the EU-25 and Vietnam amounted to around € 6.4 billion
in 2003. EU imports from Vietnam amounted to € 4.7 billion in 2003: textiles and
clothing representing 13%, agricultural products 10% and transport material 3%.
EU exports to Vietnam accounted for € 2 billion in 2003: machinery (35%), chemicals
(15%) and office and telecom equipment 7%. Between 1999 and 2003 EU imports from
Vietnam grew by 9% on average every year.
Vietnam benefits from preferential access to the EU market under the EU's
General System of Preferences (GSP), which lowers import duties below the
most favoured nation rate.
For more information:
http://europa.eu.int/comm/trade/issues/newround/index_en.htm
http://europa.eu.int/comm/trade/issues/bilateral/regions/asem/index_en.htm
Press Contacts: |
Anthony Gooch
202-862-9523 |
Maeve O'Beirne
202-862-9549 |
