EU to Sign a Free Trade Agreement with Singapore

 
Singapore and the European Union (EU) concluded their free trade agreement talks on Dec. 16, Singapore's Ministry of Trade and Industry said.

The EU-Singapore Free Trade Agreement (EUSFTA) will be signed after the completion of domestic processes including translations and verifications, it added.

Singapore is the first country in Southeast Asia to conclude free trade talks with the EU.

Under the agreement, Singapore will grant immediate duty-free access for all imports from the EU, while the EU will eliminate tariffs on all imports from Singapore over a period of five years, with eighty percent of the tariff lines to be covered after the agreement comes into effect.

Singapore exporters of electronics, pharmaceuticals, chemicals and processed food products will especially benefit from the removal of the tariffs, the Ministry of Trade and Industry said.

The agreement sees the two sides making extensive commitments guaranteeing access to each others' services markets, too. The commitments cover sectors such as environmental services, computer and related services, professional and business services, financial services and maritime transport services.

Both sides will also remove some non-tariff measures, improving access for exporters of pharmaceuticals and electronics.

Singapore's Minister for Trade and Industry Lim Hng Kiang said, "Once the agreement enters into force, Singapore is confident that the EUSFTA will further enhance our bilateral economic relations, and pave the way for a region-to-region trade deal between the EU and ASEAN."

EU Trade Commissioner Karel De Gucht said Singapore is a dynamic market and a vital hub for doing business across Southeast Asia.

"This agreement is key to unlocking the gateway to the region and can be a catalyst for growth for EU exporters," he said.

"After our agreement with South Korea, sealing this deal with Singapore clearly puts the EU on the map in Asia. But we do not intend to stop here -- I hope it will open the doors for FTAs with other countries in the ASEAN region," he added.

The free trade talks between Singapore and the EU started in March 2010.

Bilateral trade between Singapore and the EU grew by 7 percent year on year to 106 billion Singapore dollars (86.9 billion U.S. dollars) in 2011, making the EU Singapore's second largest trading partner, after Malaysia. Singapore was the EU's 13th largest trading partner globally and the 5th largest in Asia.