[Text/Watchman Network Chen Sijia] On May 25 local time, French President Macron arrived in Vietnam to begin a three-day state visit to the country. According to Reuters, France and Vietnam signed multiple cooperation agreements on May 26, including a procurement agreement for 20 Airbus aircraft, as France attempts to increase its influence in Vietnam to counter U.S. tariff threats.

Several EU officials revealed that before the signing of the agreements, European officials had warned Vietnam, urging it to "proceed cautiously" in trade negotiations with the United States. EU officials said they informed Vietnam that it should not sacrifice European interests to reach an agreement with the United States, as this could jeopardize Vietnam's relations with the EU.

The report stated that this is President Macron's first visit to Vietnam since assuming office, and the agreements signed by the two countries cover multiple fields including aircraft procurement, nuclear energy cooperation, railways, Airbus Earth observation satellites, and Sanofi vaccines.

In a statement, Macron reiterated France's support for so-called "freedom of navigation," stating that the partnership between France and Vietnam "needs to strengthen defense cooperation." Vietnamese State President Ly Cuong said that the defense partnership between Vietnam and France involves "sharing strategic information," and will strengthen cooperation in defense industries, cybersecurity, and counter-terrorism.

On May 26, Vietnamese State President Ly Cuong met with French President Macron. Visual China

Reuters pointed out that the aircraft procurement agreement was the focus of this visit. According to the agreement, European aircraft manufacturer Airbus will sell 20 A330neo wide-body aircraft to Vietnam's low-cost airline Vietjet, marking another round of cooperation after the two sides reached an agreement last year for the purchase of 20 such aircraft. Data from aviation analytics company Cirium shows that Airbus is the main supplier of Vietnam's aircraft, accounting for 86% of its civilian fleet.

During Macron's visit, Vietnam also signed a separate agreement with Airbus Defense and Space to cooperate on Earth observation satellites. The report stated that Airbus has been negotiating with Vietnam for a long time to replace one of Vietnam's Earth observation satellites. This satellite was developed by Airbus' predecessor, the European Aeronautics and Defense Systems Group (EADS), and was launched in 2013.

Two EU officials familiar with the discussions revealed that Europe is very concerned about Vietnam's cooperation with Airbus. Before France and Vietnam signed the agreements, European officials had issued warnings in recent weeks, urging Vietnam to "proceed cautiously" in trade negotiations with the United States.

Due to Vietnam's high economic dependence on exports to the U.S., Vietnam has indicated that it may purchase at least 250 Boeing aircraft for Vietnam Airlines and Vietjet Airlines. Both Vietnam and U.S. officials said such transactions would help reduce Vietnam's massive trade surplus with the U.S., to appease U.S. President Trump.

However, Vietnam's trade negotiations with the U.S. have caused concern among the EU. EU officials told Reuters that they have already informed the Vietnamese government that during negotiations with the U.S., "Vietnam should ensure that no decisions are made at the expense of European interests," as this could jeopardize Vietnam's relationship with the EU.

As Macron visited Vietnam, Trump issued new tariff threats against the EU. On May 23, Trump posted on social media that there had been no progress in trade negotiations between the U.S. and the EU, suggesting a 50% tariff on the EU starting June 1. However, Trump said on May 25 that he had spoken with European Commission President von der Leyen, agreeing to delay the 50% tariff threat and extend the trade negotiations between the U.S. and the EU until July 9.

The Financial Times reported that Trump's policy change represents a significant escalation of the looming transatlantic trade war, shocking European negotiators.

EU Commissioner for Trade and Economic Security Schinas has already spoken with U.S. Trade Representative Greer and Commerce Secretary Raimondi. Schinas said that the EU is fully engaged in trade negotiations with the U.S., but is prepared to defend its own interests. He stated on social media that trade between the U.S. and the EU is "unparalleled," but must be guided by mutual respect rather than threats.

Previously, the EU had approved a 21 billion euro tariff on American goods, but postponed implementation after the Trump administration announced a 90-day suspension of additional tariffs. The EU also warned that if negotiations with the U.S. break down, it will consider imposing tariff measures on a second batch of goods worth up to 95 billion euros.

Facing Trump's tariff threats, Vietnam has actively sought trade negotiations with the U.S. On May 16, after the conclusion of the 31st APEC Trade Ministers' Meeting, Vietnam's Minister of Industry and Trade Nguyen Hong Thang and U.S. Trade Representative Greer held their first offline ministerial-level consultations on a "reciprocal trade agreement" in Jeju, South Korea.

This is the first offline meeting between the two countries' negotiators since the U.S.-Vietnam trade negotiations began on April 23. In a statement, Vietnam's government said that Greer "expressed affirmation and appreciation for Vietnam's goodwill and initiative in preparing for the negotiations," and basically agreed with Vietnam's current position and proposals.

If Vietnam fails to reach an agreement with the U.S. by early July, it will face a 46% tariff. However, a source close to "Politico" reported on May 23 that a long-term agreement covering all aspects of U.S.-Vietnam trade may be difficult to achieve, as "the terms proposed by the U.S. are simply terrible." Industry analysts said that the two countries are likely to reach an agreement just before the deadline.

Regarding the tariff issue, Vietnam Prime Minister Pham Minh Chinh said on May 5 that especially the U.S.'s sudden announcement of large-scale high tariffs has had an adverse impact on global economic growth, seriously threatening supply chains and disrupting international trade and investment flows. "In response to the U.S.'s announcement of new tariff policies, we have remained calm, decisive, and proactive, implementing many timely, flexible, and appropriate measures, achieving preliminary positive results," Pham Minh Chinh emphasized that Vietnam needs to closely monitor both domestic and international situations, proactively predict, and flexibly and promptly make policy responses, especially regarding the U.S.'s new tariff policies. When proposing government solutions, Pham Minh Chinh stressed the need to take the initiative in perfecting the plan, maintaining Vietnam's legitimate rights and interests, and effectively negotiating with the U.S. to promote balanced and sustainable trade without affecting Vietnam's international agreements it has joined.

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Original source: https://www.toutiao.com/article/7508714902505259520/

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