EU aid for trade as contested trade policy intervention: The case of the EU-MUTRAP project in Vietnam

Abstract

This paper explains the EU's Aid for Trade (AfT) and trade relations with Vietnam, and examines how EU AfT influences Vietnam's trade policy reform. It provides an analysis of EU AfT as a contested trade policy intervention by using the results of the EU-MUTRAP project in Vietnam. The finding is that EU AfT can interfere as an “external impacts” on Vietnam's trade policy reform. Based on the priorities of EU trade policies towards Vietnam, the EU uses AfT projects to support and change the Vietnamese trade environment. The paper partially proves the contribution of the EU-MUTRAP on the EU-Vietnam Free Trade Agreement negotiations and implementation.

Evaluating the Impact of EU Non-Tariff Measures on Vietnam’s Textile Exports

“…The variable TBTij has a negative impact on the dependent variable and is statistically significant at a 1% level. The findings are consistent with some previous studies, particularly Nguyen (2022). This indicates that for every additional TBT measure, the textile and apparel export value is reduced by 1.123 times.…”

“…The result of the regression model shows that geographical distanceln(Disti) positively affects the export values of Vietnam, and also is not statistically significant, which is consistent with several previous studies, including Dang et al (2021), Nicita andSeiermann (2016), andNguyen (2022). In fact, the bilateral geographical distances from Vietnam to EU member countries are not highly varied, leading to comparable transportation and logistics costs for delivering textile products to these markets.…”