Described as a landmark agreement, the EU-Singapore Free Trade Agreement (FTA) is the first deal between the EU and a country in South East Asia.
Once it enters into force, the FTA will provide greater market access and will remove customs duties and other barriers to trade. Sectors anticipated to benefit particularly include pharmaceuticals, electronics, chemicals and food products.
Despite being concluded in October 2014, the FTA has not yet entered into force as, before it can do so, it must be ratified.
The ratification process has been delayed because the EU’s Court of Justice (CJEU) has been asked to decide on the areas of competence which apply to the European Commission and the EU Member States when it comes to making bilateral trade deals.
The Court’s opinion is expected in the first half of this year. In advance of the decision, both the EU and Singapore have reaffirmed their commitment to the deal.
On a recent visit to Singapore, EU Trade Commissioner Cecilia Malmström said that the FTA “will open doors and create opportunities for companies big and small, help to boost economic growth and investment, and create jobs”.
Noting that Singapore and the EU are longstanding partners with a shared belief in free and open trade within a rules-based global trading system, Trade Minister Lim Hng Kiang said that the new agreement will reinforce his country’s efforts to remain open and connected while strengthening its robust economic relations with the EU.
In 2016, the EU was Singapore’s second largest trading partner, accounting for 11% of its global trade. Singapore is the EU’s largest trading partner in the Association of Southeast Asian Nations (ASEAN) region.
