The EU officially closed the border – an unprecedented effort to stop the spread of Covid-19, a virus that is causing many countries to wobble. Certainly, this will affect the export of agricultural products and goods to the EU, one of the 5 markets assessed extremely important for Vietnamese agricultural products.
The EU closed the 30-day border blocking Covid-19
On the evening of March 17, European Council President Charles Michel announced that the European Union (EU) member states had agreed to decide to close the non-EU border for 30 days for non-workers. People of the bloc to stop pandemic.
The 30-day EU border closure may affect the circulation and freight. Photo: Reuters.
“The enemy is nCoV and we must do our best to protect the people, as well as the economy. We are ready to do everything we need and do not hesitate to apply additional measures if the situation changes ”- European Commission President (EC) Ursula von der Leyen said at a press conference on the evening of March 17 .
Accordingly, non-EU citizens will not be allowed to enter the area for at least the next 30 days and can be extended if necessary.
EU citizens, their relatives, diplomats, employees, health professionals and freight carriers are exempt from the above regulation. Internal movements are permitted but subject to certain restrictions.
The EU agreed to establish priority green routes for essential transport to ensure smooth movement of goods. This also applies to the transportation of medical equipment.
The EU also sought to coordinate the purchase of shared medical equipment for member countries. Member states will also coordinate to repatriate European citizens trapped abroad by countless border closures and traffic bans placed ahead of the spread of the pandemic.
In the past two days, a series of EU countries have ordered border closures to prevent COVID-19 outbreaks such as Germany, Spain, Denmark, Austria, Czech Republic, Hungary … In the opposite direction, more than 100 countries and territories around the world, including the United States, have banned entry or restricted entry for citizens from EU countries.
In France, President Macron ordered people to stay indoors, only to go out when there are necessary jobs. Before that, France had closed schools, cafes and non-essential goods stores. This requirement is also being done by Italy, Spain, Germany, … before the complicated happenings of Covid-19.
Export of agricultural products have influence?
Many people are worried, whether the EU closure of the border will affect exports of agricultural products and goods to the EU because the export by air may be significantly affected by many delayed flights, cancel or cut.
In addition, intra-regional transportation is also more or less affected by some countries tightening border control regulations.
EU is an important market of Vietnam shrimp exports. Photo: I.T
Regulations related to epidemic control may also delay the signing of export orders in the near future between Vietnam and EU partners; obstructing bilateral trade – investment promotion activities; prevent the movement of experts and workers in restricted areas in the context of tightening isolation to combat epidemics.
EC President Ursula Von der Leyen also affirmed that all basic goods and services to the EU need to be continuously circulated to ensure the supply, especially essential goods such as food and beverages. production conditions, medicine.
However, disease control measures may affect the speed of goods movement or market demand.
Being the second key market of Vietnam's agricultural exports, the EU has 27 member countries, of which Vietnam has brought agricultural products to 17 countries. The closure of the EU will certainly leave much of the impact of slow circulation due to strict disease control procedures.
This also happened to the Chinese market in early February 2020 when the Covid-19 epidemic broke out in the country and the authorities and localities on the two sides were forced to increase their control measures.
The Ministry of Industry and Trade predicts that Vietnam's exports to the EU in the first and second quarters may decrease from 6% to 8% if the epidemic continues in June. Meanwhile, the export growth in the second half of 2020 may better if the epidemic is repelled and EVFTA goes into effect.
| In 2019, the volume of goods exported to the EU via the sea will reach 20.5 billion euros, by air will reach 14.5 billion euros, the rail will reach 671 million euros; while imports by sea, air and rail are respectively € 5.99 billion, € 3.56 billion and € 9 million. |
