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Time for EU and China to act on an FTA

By Fu Jing | China Daily | Updated: 2015-08-11 07:58

After the European Union and its fifth-largest trading partner Vietnam announced last week that they had agreed in principle to lift most tariffs on goods in the coming years, China and the EU should seriously think about removing their customs barriers to boost the combined economies of roughly 2 billion consumers. On Aug 4, the EU said it would eliminate its duties over a seven-year period and Vietnam agreed to liberalize trade in financial services, telecommunications, transport, and postal and courier services over 10 years.

The agreement, the first comprehensive deal between the EU and a developing economy, according to Brussels, serves as a stepping stone to clinch similar deals between the EU and the Association of Southeast Asian Nations as a whole. The EU has already entered into a free trade agreement (FTA) with Singapore.

The fact that the EU and Vietnam have struck such a deal in less than three years should prompt China to reschedule its negotiation timetable on investment and trade with the EU. At present, Beijing and Brussels are engaged in stand-alone investment talks, and it is expected that the combined text offered by both sides can be formed by the end of this year.

Time for EU and China to act on an FTA

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