It was announced today that the European Union and Vietnam have reached an agreement in principle on a free trade agreement (FTA). All substantive issues have been settled on both sides after two and a half years of negotiation, leading to the likely removal of nearly all tariffs on products traded between the two economies. Vietnam is a major supplier of shoes and clothing to the EU, and it has a growing market of 90 million consumers. Coupled with the recent FTA between the EU and South Korea and the “fast-track” authority recently given to the administration of President Barack Obama to negotiate a Trans-Pacific Partnership with Vietnam and other Asian countries, this should hopefully help open up borders in other countries such as China and Brazil. The EU is already in negotiations for an FTA with the U.S.

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