The Free Trade Agreement Between the European Union and Vietnam

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 exporters invoice declaration and, above this amount, by an exporter registered on the REX (Registered EXporter) system. The protection of intellectual 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.