Free and fair trade between countries is a crucial issue in politics and economics. Free trade includes policies that help to reduce barriers that may serve as an impediment to international commerce. Fair trade aims to support manufacturers in developing countries by providing fair and sustainable commercial relations with developed countries. This paper will present a summary of a recent article concerning the issue and discuss its importance to the global community. A personal opinion on the problem will also be expressed.
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Summary of the Article
On June 8, the trade deal between Vietnam and the EU was signed. The agreement is believed to promote Vietnam’s economic recovery after its recession due to the Coronavirus pandemic. Analysts expect that the positive effect on the economy will be seen this summer. Under the terms of the pact, almost 99 percent of custom duties between Vietnam and the EU are expected to be eliminated (Dezan Shira & Associates, 2020). The agreement may help boost Vietnam’s economy, increase its GDP, and raise exports from Vietnam to the EU in five years.
The reviewed article indicates that the trade partnership between the EU and Vietnam has been maintained for an extended period. European countries invest money in Vietnam projects, and in 2018 the sum amounted almost to US$ 1.1 billion (Dezan Shira & Associates, 2020). The most substantial investment has been seen in electricity, manufacturing, and real estate (Dezan Shira & Associates, 2020). In total, 24 EU countries make investments in Vietnam, and the Netherlands takes first place on the list.
The purpose of the agreement is to eliminate trade barriers on both sides. The increase in Vietnam’s export amount to the EU countries may lead to the expansion of local industries, such as the manufacturing of electronics, textiles, footwear, and agricultural products (Dezan Shira & Associates, 2020). The pact will allow increasing Vietnam’s exports of footwear, textile, and clothing to the EU. Electronics manufacturing is another source of income in Vietnam, and the agreement with the European Union will give an opportunity to get more profit from the industry. The pharmaceutical market plays an important role in the EU-Vietnam trade partnership. The contract’s enactment will promote the growth of this sector and bring Thailand extra revenue.
The agreement will also permit to import remanufactured goods from Thailand to the EU countries. Moreover, it will abolish import and export taxes on repaired goods. Dezan Shira & Associates also state that Vietnam will see “the integration of the EU market” as ‘Made in EU’ goods will be accepted in the country (Made in EU section, para. 1). The pact’s provisions are aimed at stabilizing Vietnam’s financial state and ensuring fair and competitive trade conditions.
The article in question was published by Vietnam Briefing on June 8, 2020. So, its contents appear to reflect the current state of affairs and provide the reader with actual information. Furthermore, it contains relevant information on the issue of free and fair trade between countries. It examines the recently signed deal between Vietnam and the EU and describes the agreement’s key points. Hence, I can make a conclusion that the source is credible, reliable, and relevant and can be included in the paper.
In my opinion, this agreement will be beneficial for both Vietnam and the EU. Developing countries, such as Vietnam, need support from developed nations, and it seems that the establishment of free and fair trade conditions is one of the best ways to do it. To my mind, the creation of decent working conditions, reasonable prices, and terms of trade is crucial in building commercial relations. The pact will help to eliminate trade barriers between the EU countries and Vietnam and boost the economy of the latter.
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Importance to the Global Community
It appears that the agreement becomes even more significant in the light of recent events with the COVID-19 pandemic and worldwide economic recession. For example, Adviento (2020) states that export bans on medical products should be removed, and the developing countries should be provided with enough medicaments and food. It is of paramount importance now to provide financial support to low-income nations and to establish fair and sustainable trade relations. As such, the agreement between the EU countries and Vietnam contributes to the global community’s well-being as it may influence not only the financial system of the countries in question but also improve the global state. The financial system of the developing nations is closely connected with the worldwide economy, and by creating equitable trade conditions here, we change the general situation for the better.
All in all, the reviewed article concerns the issue of free and fair trade. The signed agreement is expected to give Vietnam, which relates to developing countries, a necessary economic boost. Its provisions include the trade barriers elimination and the promotion of fair and free trade conditions. It should be noted that the pact plays an essential role in improving Vietnam’s economy, which has faced a recession due to the negative consequences of the Coronavirus pandemic.
Adviento, A. (2020). Fair trade for all crucial in times of Covid-19. IndustriALL. Web.
Dezan Shira & Associates. (2020). Vietnam-EU trade: EVFTA ratified by Vietnam’s National Assembly. Vietnam Briefing. Web.