EU Pushes Vietnam to Ease Trade Barriers Amid Widening Deficit

The European Union is poised to press Vietnam to remove administrative barriers hindering EU exports as the bloc grapples with a widening trade deficit with Hanoi. This initiative, taking place amid global trade tensions, highlights the need for smoother trade flow, according to multiple European officials and a draft document seen by Reuters.

Since a 2019 free trade agreement, Vietnam has become the EU's largest trading partner in Southeast Asia. Bilateral trade soared to 67 billion euros last year, though the EU's trade deficit surged nearly 20%, reaching about $50 billion. EU trade commissioner Maros Sefcovic is set to meet with Vietnamese officials this week to address these concerns, the draft agenda indicates.

Efforts to dismantle non-tariff barriers on EU products, including food, pharmaceuticals, and automobiles, will be at the forefront of discussions. Vietnam has cited staff shortages for delays in exporting European goods, while, in contrast, it's pressing the EU to reconsider tariffs and regulations impacting Vietnamese exports. As the talks progress, both parties are seeking an equitable resolution to their mutual trade challenges.

(With inputs from agencies.)