The European Union and Vietnam will launch bilateral talks for a free trade pact.
The European Commission Directorate General for Trade said Tuesday the countries will initiate formal negotiations and establish a framework for the talks, a move that “reflects the deepening trade relations between the EU and Vietnam.”
Bilateral trade between the EU and Vietnam was almost 12 billion euros, or $16.3 billion, in 2008, according to the European Commission. Trade between the EU and Vietnam increased 12 percent annually between 2004 and 2008. Vietnam is the EU’s fifth-largest trading partner.
Vietnam was the first stop of new EU Trade Commissioner Karel De Gucht on a trip to Asia this week. Next he will visit Singapore and India. The EU previously said it also will be launching negotiations for a free trade agreement with Singapore.
The Obama administration has identified Asia-Pacific as a high-priority area in its trade agenda and is set to begin formal negotiations to join the Trans-Pacific Partnership, which would include both Vietnam and Singapore, later this month. The U.S. has a free trade agreement with Singapore.