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SINGAPORE: Singapore and the United Kingdom signed a free trade agreement on Thursday (December 10) that “will bring continuity and certainty” to businesses in both countries, said Singapore’s Minister of Trade and Industry Chan Chun Sing.
The FTA was signed by Mr. Chan and the UK Secretary of State for International Trade, Elizabeth Truss.
The UK and the European Union are currently locked in post-Brexit trade talks, more than 10 months after the UK left the bloc.
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Under the FTA between the UK and Singapore, companies from both countries will enjoy the same benefits they receive under the EU-Singapore FTA, the Ministry of Trade and Industry (MTI) said.
These benefits include the elimination of tariffs for trade in goods and greater access to services and public procurement markets. Non-tariff barriers would also be lowered, including in four main sectors: electronics, motor vehicles and vehicle parts, pharmaceuticals and medical devices, and renewable energy generation.
“The FTA between the UK and Singapore will provide Singaporean and UK companies with certainty and clarity in trade agreements between the two countries,” said MTI.
NAFTA will cover more than £ 17bn (S $ 30bn) of bilateral trade in goods and services.
TARIFF ELIMINATION ON 84 PERCENT OF EXPORTS
Under the deal, tariffs will remain removed for 84 percent of all tariff lines for Singapore’s exports to the UK, a joint Singapore-UK ministerial statement said.
“Asian food products from Singapore such as har gow (shrimp dumplings) and sambal ikan bilis (spicy crunchy anchovies) will continue to enter the UK duty-free under flexible rules of origin, up to a combined quota of 350 tonnes per year,” the aggregate statement set.
“Singapore will also continue to consolidate our current level of duty-free access for all UK products entering Singapore, and will maintain protection for flagship UK products such as Scotch whiskey.”
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Virtually all remaining tariffs will be removed by November 21, 2024, similar to the EU-Singapore FTA, MTI added. Singapore will also continue to consolidate its current level of duty-free access under the EU-Singapore FTA for all UK products entering the country.
The UK-Singapore FTA will also continue to provide “liberal and flexible” rules of origin for key UK and Singapore exports to each other’s markets, including cars, chemicals, clothing and textiles, electronics, machinery, pharmaceuticals. and petrochemicals.
Under the current agreement under the EU-Singapore FTA, the UK and Singapore can continue to use EU-27 materials and parts in their exports to each other’s markets, MTI said.
“The provision of the EU-Singapore FTA on ASEAN build-up would also stand. Once the relevant agreements are in place, Singaporean exports using ASEAN materials and parts may qualify for preferential tariff treatment upon entering the UK, ”added MTI.
The FTA between the UK and Singapore will also remove “unnecessary” technical barriers to trade for Singaporean and UK exporters, MTI said. The provisions of the agreement are aimed at reducing costs for exporters.
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“This will create a level playing field for UK and Singapore companies and facilitate trade between (both countries),” said MTI, adding that the free trade agreement will eliminate
The UK-Singapore FTA will provide “enhanced” market access for service providers, professionals and investors to “further boost dynamic trade” in services between the two countries.
The agreement covers a range of service sectors including architecture, engineering, management consulting, advertising, IT, environmental, postal and courier, ship and aircraft maintenance and repair, international shipping, as well as hotel and restaurant services.
The FTA will also allow more opportunities in public procurement. The MTI said the UK will give Singapore “enhanced access” to public procurement opportunities at the city and municipal level, with transport, financial services and utilities companies among which will benefit.
TLC “DEEPENS THE RELATIONSHIP” BETWEEN BOTH COUNTRIES: MR CHAN
Both countries will also begin to analyze the modules of a Digital Economy Agreement (DEA) between the United Kingdom and Singapore, with the aim of starting negotiations on the DEA in 2021.
“The (DEA) will promote the flow of data across borders while maintaining high levels of protection of personal data,” MTI said.
“It will also promote interoperable digital systems to connect our thriving innovation ecosystems, harness the interplay between financial services and the digital economy, and help shape global standards for effective regulation in key areas such as cybersecurity and emerging technology.” .
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Chan said the signing of the UK-Singapore FTA “strengthens and deepens” the relationship between Singapore and the UK.
It will send a “strong signal” of the UK’s commitment to deepen its engagement with the region, added the Minister for Trade and Industry.
“The UK has also shown a clear interest in joining the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP), which Singapore supports and welcomes,” said Mr Chan.
Both Singapore and the UK will now work on their respective ratification processes to bring the FTA into effect.
