In the case of EVFTA, both parties agreed to create a permanent tribunal called a “tribunal” to deal with these issues. This will protect not only investors and their investments, but also a country`s right to monitor the implementation of public policies. In addition, the court system will be an independent dispute resolution system. Another important regulatory development in NAFTA is the considerable progress made in the area of intellectual property rights (IPR). Not only has Vietnam committed to accede to the World Intellectual Property Organization (WIPO) Internet Treaties and the Hague Convention on the International Registration of Industrial Designs, but the Free Trade Agreement also contains strict provisions to improve the legal framework in order to effectively enforce the obligations arising from these obligations. An agreement on geographical indications was also signed, which will ensure the protection of 169 European and Vietnamese geographical indications, prevent abuse and counterfeiting and further promote the flow of quality products between the two sides. 17.02.2020 On 12 February 2020, the European Parliament approved the EU-Vietnam Free Trade Agreement (NAFTA) and the Investment Protection Agreement (EVIPA). The former, adopted by 401 votes in favour, 192 against and 40 abstentions, ensure predictable preferential access to their respective markets. The latter guarantees, by 407 votes in favour, 188 votes against and 53 abstentions, that foreign investors will be treated fairly and equitably and will replace the 21 bilateral investment agreements (NTBs) in force between Vietnam and the EU Member States. Under NAFTA, a permanent dispute settlement system will be put in place to deal with disputes related to the investment protection provisions of the Free Trade Agreement, such as.
B protection against expropriation without compensation. The free trade agreement will also remove many of the existing non-tariff barriers with Vietnam and open Vietnamese services and government procurement markets to EU companies, while the IPA will strengthen the protection of EU investments in the country. The trade deal that both sides want to bring into force by 2020 will remove more than 99% of tariffs. According to the Ministry of Planning and Investment, the free trade agreement is expected to help increase Vietnam`s GDP by 4.6% by 2025 and its exports to the EU by 42.7%. While the European Commission has forecast that the EU`s GDP will increase by $29.5 billion by 2035. The EU-Vietnam Free Trade Agreement and IPA include mutually agreed strategies, legal and enforcement instruments, which are essential to ensure fair and transparent market liberalisation, as well as technology and innovation transfers. Among these, the Agreement on Technical Barriers to Trade (TBTA) contained in the Free Trade Agreement ensures that technical rules, standards and conformity assessment procedures are non-discriminatory, are established in accordance with international standards and do not create unnecessary barriers to trade. With respect to the EVIPA, this agreement, as signed with advanced economies such as Canada and Japan, sets specific standards of investment protection to ensure fair and equitable treatment as well as physical security for investors. European and Vietnamese investors will also benefit from a modern and sustainable investment dispute settlement mechanism, which will ensure the applicability and transparency of the dispute settlement procedure. A dispute settlement mechanism has also been included in the free trade agreement.
An Investment Protection Agreement (IPA), which is part of a free trade agreement (FTA), is an agreement between two or more countries aimed at protecting investors and investments in a host country. . . .