Vu Kim Ngan, Ph.D

Lecturer, Faculty of Law, Foreign Trade University

Abstract

In addition to broader scope and deeper level of commitments, the inclusion of non-trade issues is one main characteristic of modern new-generation FTAs, especially those of the EU. Whether partnering with developed or developing economies, the EU has been consistent in ‘exporting’ its values such as sustainable development, good governance and human rights to its trading partners. Paradoxically or not, the EU’s free trade agreements have been instrumental in facilitating the promotion of non-trade issues worldwide, notably in developing countries. Even though, the extent to which these non-trade issues provisions can change the respective situations in developing countries remains uncertain. This paper aims at analysing the EU’s rationale and purpose for the inclusion of non-trade issues in its FTAs, understanding the legal effects produced by these provisions and assessing their impacts in the preservation and protection of non-trade values in EU’s partner countries. Taking examples of EU’s new-generation FTAs, the research points out that while the EU is ambitious in exporting a wide range of non-trade values, these provisions effectively leaves implementation to parties’ goodwill and that the protection of non-trade values remains political while the sanctioning mechanisms are not always provided. In addition, insights as to the rationale for EU trading partners, particularly ASEAN countries, to accept non-trade rules within the Union’s new-generation FTAs will also be analysed.

Key words: European Union, non-trade issues, new-generation FTAs, European values, legal harmonization, ASEAN