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SINGAPORE: The free trade agreement between Singapore and the United Kingdom will provisionally enter into force on Friday (January 1), providing “certainty and clarity in trade agreements” between the two countries, the Ministry of Trade and Industry said on Thursday.
The EU-Singapore free trade agreement will no longer apply to trade between the UK and Singapore.
The FTA between Singapore and the United Kingdom was signed on December 10 by the Minister of Trade and Industry, Chan Chun Sing, and the Secretary of State for International Trade of the United Kingdom, Elizabeth Truss.
The agreement will enter into force at 7 a.m. Singapore time on January 1 through provisional application, allowing countries to apply treaty commitments on a provisional basis while completing their necessary domestic procedures and treaty formalities. relevant international regulations for its entry into force.
That’s when the Brexit transition period for the UK ends.
Following the signing of the agreement, the UK and Singapore have completed the respective internal procedures for the provisional application of the agreement, MTI said in a press release.
This will continue until the FTA between the United Kingdom and Singapore is ratified by both countries and enters into force.
Companies that trade between the UK and Singapore under the FTA will be able to enjoy the same benefits as those under the EU-Singapore FTA, MTI said.
These include the elimination of tariffs for trade in goods and greater access to services and public procurement markets. They also include the reduction of non-tariff barriers in four main sectors: Electronics; motor vehicles and vehicle parts; pharmaceutical products and medical devices; and renewable energy generation.
“In a spirit of continuity, the UK and Singapore have committed to maintaining the same schedule for tariff reductions as the EUSFTA (EU-Singapore FTA),” MTI said in a newsletter.
The free trade agreement between Singapore and the United Kingdom will provisionally enter into force on January 1, 2021. (Graphic: Ministry of Commerce and Industry)
When the FTA between the UK and Singapore enters into force, tariffs will remain eliminated for 84 percent of all tariff lines for Singapore’s exports to the UK. Virtually all remaining tariffs will be removed by November 21, 2024, similar to the EU-Singapore FTA.
“Singaporean companies will also continue to enjoy greater market access in the UK for Asian food products made in Singapore, such as har gow (prawn dumplings) and sambal ikan bile (spicy crispy anchovies),” said MTI. .
They will be able to enter the UK duty-free, up to a combined quota of 350 tons per year.
The FTA between the UK and Singapore will also remove unnecessary technical barriers to trade for Singaporean and UK exporters, MTI said.
“This will create a level playing field for UK and Singapore companies and facilitate trade between the UK and Singapore. It will benefit a wide range of sectors in both the UK and Singapore, such as electronics, motor vehicles and vehicle parts, pharmaceuticals and renewable energy, as well as meat and meat products, “he added.
Additionally, NAFTA will provide better market access for service providers, professionals, and investors.
The agreement covers a wide 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.
