Hanoi (VNA) - Vice President Dang ThiNgoc Thinh presented the State President’s proposal to the National Assembly for ratifying the EU-Vietnam Free Trade Agreement (EVFTA) at the openingsitting of the 14th National Assembly’s ninth session on May 20.

Signed in Hanoi on June 30, 2019, the EVFTA consistsof 17 chapters, eight annexes, two protocols, two memoranda of understanding,and four joint statements. With its level of commitment, the deal is considereda comprehensive and high-quality agreement that guarantees the balance ofinterests between Vietnam and the EU and matches WTO regulations.

Vice President Thinh said that in terms ofpolitics, national security, and diplomatic strategy, the deal reflects thestrong determination of both sides to strengthen bilateral ties, therebyhelping to develop relations in a more intensive and substantive manner.

Together with the Comprehensive and ProgressiveAgreement for Trans-Pacific Partnership (CPTPP), the ratification andimplementation of the EVFTA would affirm Vietnam’s commitments to theinternational free trade system, help promote negotiations of FTAs with otherimportant partners, and mark an important stage in the country’s comprehensiveand intensive international integration, she said.

As Vietnam is holding the ASEAN Chairmanship in2020, the EVFTA will help enhance its role and stature in EU-ASEAN relationsand be an example of an FTA between the two blocs in the future, according to theVice President.

She also cited a Government report as saying thatafter the deal takes effect, bilateral trade and the EU’s investment inVietnam will both increase, actively contributing to economic growth, job creation,and State budget revenue.

However, she noted, the pact may also generatecertain challenges in market competition, the reform of the legal system tocomply with the deal’s strict requirements, and the pressure of socialsupervision over the deal’s implementation.

Regarding Brexit and the UK’s relationship withthe EVFTA, Thinh said that under the Brexit agreement, the UK will have atransition period before officially leaving the EU. Therefore, if the EVFTAbecomes effective during this transition period, the UK will still benefit fromVietnam’s commitments with the EU under the pact and vice-versa.

The UK also has the right to negotiate, sign,and ratify new bilateral FTAs during the transition period, but such deals mustnot come into force or be implemented during that time, unless the EU agrees.

It has been promoting talks on a bilateralagreement with Vietnam on the basis of the EVFTA, so any future deal could beenforced after the transition period, Thinh noted.

Delivering a verification report on the matter,Chairman of the NA’s Committee for External Relations Nguyen Van Giau said ratifying the pact would send out an important message about Vietnam’s resolve to foster internationaleconomic connectivity and support the rules-based multilateral trade systemamid emerging populism and trade protectionism. It will also help diversify thecountry’s markets and ensure economic security.

The signing and ratifying of the EVFTA at thispoint in time is appropriate, he said, as it will continue to create momentum for international economic integration and domestic economic recovery after the COVID-19.

Given this, the committee proposed the NA ratify the EVFTA at this ninth session and allow theimplementation of the deal with the UK until the transition period ends on December31, 2020. The FTA enforcement in relation to the UK could be extended for anadditional 24 months under the Brexit agreement.

The committee also proposed the legislature assignthe Government to step up negotiations for and the signing of a bilateral FTAwith the UK on the basis of the EVFTA, Giau said./.