EXCLUSIVE : Why does the EU want to treat the UK worse than Vietnam?

On Sunday the EU will sign a trade deal with Vietnam. Vietnam will :

Not be forced to be a member of the Customs Union
Not be forced to be a member of the Single Market
Not be forced to have its laws decided in Brussels by a foreign court
Not be forced to pay vast amounts to the EU each year
Not be forced to subsidise poorer EU countries
Not be forced to accept freedom of movement of EU citizens

In effect Vietnam will have free trade with the EU, but without ‘Withdrawal Agreement’ obligations

Credit: EU Commission

Yesterday the EU’s Council of Ministers approved the EU-Vietnam trade and investment agreements. EU Commissioner for Trade Cecilia Malmström and Romanian Minister for Business, Trade and Entrepreneurship Ștefan-Radu Oprea will sign the agreement on the EU's behalf in Hanoi this coming Sunday, 30 June.

Brexit Facts4EU.org Summary

EU-Vietnam trade deal

Vietnam represented only 0.6% of EU global exports in 2018
Vietnam bought only €11.1 billion of goods from the EU last year
The UK bought €301.4 billion of goods from the EU last year – 27 times that of Vietnam
Vietnam was responsible for an EU trade DEFICIT in 2018 of €27 billion Euros
The EU had a trade SURPLUS OF €107.3 billion of goods with the UK last year (approx £96 billion GBP)
Summary: the EU earns massively from the UK, but loses in trade with Vietnam

The trade agreement with the former French colony of Vietnam will eliminate nearly all customs duties on goods traded between the two sides in a progressive way. The EU says that 99% of products will have no tariffs when the deal is fully in force.

The EU’s Commissioner for Trade, who was appointed with no trade experience

The EU has a Commissioner for Trade, appointed by Jean-Claude Juncker. Her name is Cecilia Malmström. She was appointed by President Juncker despite the fact that she had no experience of trade.

On Sunday she will be in Vietnam signing this new agreement. An indication of Ms Malmström’s and the EU’s priorities can be observed in the five key achievements listed in the EU’s factsheet on this trade agreement with Vietnam. Third on the list is ‘Protecting Geographical Indications’.

“169 traditional European food and drinks products from a specific geographical origin will be protected against imitation on the Vietnamese market. This includes famous European delicacies like: Champagne, Parmigiano Reggiano cheese, Rioja wine, and Feta cheese.”

Cecilia Malmström
EU Trade Commissioner

Once again we see the EU focusing on matters of interest to other EU member states but of little interest to the UK. Readers may also like to know that the EU insisted that Vietnam must recognise ‘Made in EU’ as the mark of origin of goods it imports from EU member states. Not ‘Made in UK’ or ‘Made in France’, but ‘Made in EU’ - as if the EU were a country.

What has the EU actually achieved with this deal?

Not much. Vietnam already benefited from zero tariffs on a wide range of products. As the EU admits in one of its documents:

“Many Vietnamese products currently benefit from trade preferences offered unilaterally by the EU under the General Scheme of Preferences (GSP). The agreement will allow Vietnam to maintain free access to the EU market for those products also in the future, even if its economic situation no longer justifies a preferential treatment reserved for developing countries. In addition, the agreement will lead to a gradual tariff elimination for the remaining products.”

Critically, the EU has a trade deficit with Vietnam of €27 billion. Vietnam sells the EU almost three and a half times more than the EU sells to Vietnam.

The EU had a trade SURPLUS with the UK in 2018 of €107.3 billion (approx £96 billion GBP). The EU sold over €301 billion of goods to the UK last year.

MPs denied any say on this trade deal

Trade is one of the areas of ‘exclusive competence’ of the EU Commission. This means that the unelected Ms Malmström oversees all negotiations for trade agreements. Member state governments such as the UK cannot discuss trade separately.

On Sunday this EU Commissioner will be accompanied in Hanoi by the Romanian Minister for Trade Ștefan-Radu Oprea. Together they will represent the UK and the other 27 member states. The UK Secretary of State for International Trade, the Rt Hon Dr Liam Fox MP, is not invited, nor is any other minister of any other member state.

Meanwhile in the UK, British Remain MPs will be still talking about Brexit, and about their claim that there is a democratic need for Parliament to decide on it. They will of course ignore the fact that the EU denies them any democratic say on its latest trade deal – or indeed on any trade deals.

Observations

For decades the EU did almost nothing about international trade. They still haven’t managed to do a trade deal with the world’s largest economy, the USA, nor with China, or India, or Brazil or most of the world’s largest economies.

Since the UK’s Referendum the unelected EU Commission have been falling over themselves to announce trade deals, so much so that we have seen the same trade deal announced on many different occasions, as it passes through the EU’s laborious processes. We confidently predict the same thing will happen with this deal with Vietnam.

The EU earns from the UK, but it doesn’t from Vietnam. The EU is NOT demanding that Vietnam has membership of the Customs Union or Single Market, nor jurisdiction of the ECJ, nor vast annual payments to the EU, nor freedom of movement.

Why does the EU want to treat the UK worse than Vietnam?
What this shows is that the EU’s stance towards the UK is purely political and ideological.
The sooner we win back independence from this totalitarian edifice, the better.

Finally, a few questions to Remain MPs

Are you happy that a trade deal has been negotiated with Vietnam, over which you had no say and no control?
Are you not the tiniest bit concerned about the effect on UK jobs and on the UK economy?
Wouldn’t you like to ask questions about the potential flooding of the UK market with cheap Vietnamese products?

There are two main points here. Firstly this is not about the rights and wrongs of this trade deal, but the fact that MPs can’t even question it. Secondly here is another trade deal without all the encumbrances of EU membership.

The next time Remain MPs are bleating about ‘Parliament having a say’, readers may want to ask themselves why these MPs never demand a say on all the vital areas controlled by the EU, and over which MPs have no say whatsoever.

Readers may also wonder why the UK can’t have a simple trade deal with the EU, when all our laws and regulations are currently aligned.

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[ Sources: EU Commission statements, press releases, factsheets | Eurostat official EU stats agency ] Politicians and journalists can contact us for details, as ever.

Brexit Facts4EU.Org, 26 Jun 2019

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Reader Comments 10

1. Concerned Expat , Wednesday, June 26, 2019, 05:15:

Thank you so much for publishing stuff like this that just shows the EU for what it is.

2. Patrick F , Wednesday, June 26, 2019, 05:39:

Ditto.

3. barbara jell , Wednesday, June 26, 2019, 08:03:

I have recommended your site and posted this excellent article to the laudable Steve Baker, who should, ideally, have been our Prime Minsiter, being one of the truest and most principled Brexiteers in the swamp called Parliament. He might hopefully persuade other ignorant MPs to go to your website, (particularly Remainers), which exposes the full horrors of the Federalist dictatorship to which they wish to keep us shackled.
Steve has warned Barnier: "Make no mistake - we're leaving on October 31" and also told Phillip Hammond he 'needs to get a grip'! MORE please Steve!!

4. James Bertram , Wednesday, June 26, 2019, 11:53:

Too, have recommended this article - comment on John Redwood's Diary.
Thank you for exposing these inconvenient truths.

5. The Brexit Facts4EU.Org team , Wednesday, June 26, 2019, 14:04:

Thanks for the kind comments. We're doing our best to get this article more widely promoted. As usual it's not easy!

6. Jon, Wales , Wednesday, June 26, 2019, 16:47:

Excellent article which I passed to my staunch remainer MP this morning. Thank you.
I would also urge all readers to visit John Redwoods Diary and read his blog today.
Government have increased VAT on solar panels from 5% to 20%. Sir John did not support that increased VAT (an EU tax).
It is my opinion the EU will continue to grab as much UK money as they can before exit. Perhaps Mrs May PM is attempting to secure a legacy of sorts?
Mrs May is first Lord of the Treasury, Chancellor Hammond the second Lord of the Treasury. They should be gearing the UK towards our exit, not giving away more and more to the EU.
But read Sir John's article.

7. Adam Hiley , Wednesday, June 26, 2019, 17:13:

what does Vietnam sell or make just asking in Asia it's Japan that sells the best goods like Germany or British make the best in Europe Steven Baker & John Redwood JRM would make great Secretaries of State in a BoJo led Administration god not Jeremy Hunt the Cameron clone

8. In mourning , Wednesday, June 26, 2019, 19:57:

Yes indeed John Redwood's Diary is an excellent viewpoint into the madnesses of the current Conservative government.
Has no-one the guts to say we are leaving the EU, get lost? Talk about wimps. It is plain knowledge that some of our European partners ignore EU diktats and rules to suit themselves whilst the stupid British establishment adhere to every clik of the finger from almighty Brussels.
Oh for a Churchill or a Powell or anyone with guts and a love of our dear country, if we don't leave 31.10.2019, I think the country is finished.

9. Peter Lloyd , Wednesday, June 26, 2019, 21:32:

Excellent example of the iniquity of the EU's behaviour towards the UK compared to that towards other 3rd countries. Great to highlight the lack of any form of democratic involvement in the process within the EU for the member states.

10. Adam Hiley , Saturday, June 29, 2019, 09:50:

Vietnam don't You love the smell of Napalm in the morning

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