(VOVworld) – Minister of Foreign Affairs Pham Binh Minh and the EU High Representative for Foreign Affairs and Security Policy, Catherine Ashton, today in Brussels signed a new EU-Vietnam Partnership and Cooperation Agreement (PCA) and launched negotiations on the bilateral Free Trade Agreement (FTA). This event opens up a new period of development in Vietnam-EU cooperation, and acts as a base for Vietnam and the EU to set up specific cooperative mechanisms for future ties. Anh Huyen has more:

The Vietnam-EU Partnership and Cooperation Agreement (PCA), comprised of 8 chapters and 65 articles, affirmes basic principles of bilateral relationship and defines a comprehensive cooperative framework for all fields: development, trade and investment, judicial cooperation, peace and international security protection. Ambassador Franz Jessen, head of the European Union delegation to Vietnam, said this PCA reflects a giant step forward for the 20 year old Vietnam-EU relationship, especially after the Vietnam-EU Framework Cooperation Agreement was signed in 1995. Jessen added that the PCA contents are very comprehensive, harmoniously reflecting interests and priorities of both sides. He said: “We are moving, if we look closer over these last 20 years we have had a relationship, now we’re moving from a relationship that was at first mainly development cooperation. Now we are moving into a more political relationship where the PCA will take issues such as our human rights dialogue for wanting a more constructive useful format, we also have cooperation now among our security services looking at things like new risks, issues as they say that we can cooperate on, issues on anti piracy for example, what do we do with things such as climate change, we work on that together and also how do we work together at the actual forum? How do we work together in the UN system in a more constructive way, being close partners as we are, and developing that partnership more.”

Minister of Trade Vu Huy Hoang and EU High Commission Representative officially announced the launch of Vietnam-EU bilateral FTA negotiations in Brussels, Belgium

There is huge prospect for Vietnam to expand its markets in the EU as currently Vietnam-EU trade turnover only accounts for 0.5% of EU total trade turnover. The signing of PCA will create foundations for both sides to negotiate a free trade agreement, devise mechanisms to support sectors and businesses to approach and better exploit each other’s markets and advantages in terms of capital, technologies, and advanced management skills. Negotiations and the signing of bilateral FTA will open up many opportunities for both sides, lifting tariff and non-tarriff barriers, creating favorable conditions for export growth and economic growth in general. Currently, this 42% of Vietnam’s exports to EU enjoy 0% of taxes. Once FTA comes into force, this 0% can increase to 90%. Together with FTA negotiations, the EU will speed up its recognition of Vietnam’s market economy, facilitating Vietnam in the fight against all forms of trade protectionism such as anti-dumping taxes.

In terms of development cooperation, EU pledges to PCA principles to continue to provide Vietnam with development aids after 2013 in accordance with Vietnam’s strategies and socio-economic programs. The EU has committed to increase support for Vietnam to achieve internationally recognized development goals, including the UN millenium development goals. This will be a foundation for Vietnam to make full use of support from the EU and its members to serve national development goals.

The new PCA demonstrates the commitment of the EU to forge a modern, broad-based and mutually-beneficial partnership with Vietnam. It will broaden the scope of EU-Vietnam cooperation in areas such as trade, the environment, energy, science and technology, good governance, as well as tourism, culture, migration, counter terrorism and the fight against corruption and organised crime. PCA also expands cooperation with Vietnam in fields where the EU flourishes and Vietnam seeks their commitment to technical assistance to effectively implement reforms, restructuring of its economy and integration into the world market.

The PCA will further deepen the fine political relationship between Vietnam and EU. This will serve as a base for Vietnam and the EU to increase dialogues and cooperation in settling issues of mutual concerns, both in bilateral and multilateral forums like UN, ASEM, and ASEAN-EU, especially after Vietnam will be coordinator for ASEAN-EU relations this July. Ambassador Franz Jessen said: "We hope very much the PCA will be signed at Brussels, we are planning to do that, that was very good development in the relationship between the EU and Vietnam. I love the expression “a more colorful relationship” because in fact, I think it would be more colorful and also a warmer relationship after we have signed the PCA."

With Vietnam’s positive and vigorous progress in relationships with EU and its member countries over the past 20 years, the signing of PCA, and the launching of FTA negotiations will open up a new page for expansion of ties between Vietnam and EU, which is expected to contribute to the country’s modernization, industrialization, and international integration in the future.