Singapore and China are looking to elevate the terms of their free trade agreement (FTA) to further deepen their economic ties, and said they expect to conclude talks by late next year.
Singapore Prime Minister Lee Hsien Loong and China President Xi Jinping witnessed recently the launch of the upgrade negotiations for the China-Singapore Free Trade Agreement (CSFTA), a legal framework that supports bilateral economic cooperation that the two countries enforced in 2009.
China is currently Singapore’s largest trading partner, while Singapore has been China’s largest foreign investor since 2013. Singapore also became China’s largest overseas direct investment destination in the Association of Southeast Asian Nations (ASEAN) in 2014.
The CSFTA is a comprehensive trade deal which covers trade in goods, services, investment, trade remedies, customs procedures, and economic cooperation, among others. Since its enforcement six years ago, the pact has boosted bilateral economic relations by 33% to reach over SGD120 billion in 2014.
At the same time, the two countries signed three agreements to launch the third government-to-government (G-to-G) project based in Chongqing Municipality in Western China.
In July 2015, both countries agreed to launch a joint scoping study for the CSFTA upgrade on injecting new dimensions into the deal and refresh its relevance to businesses, according to Singapore’s Ministry of Trade and Industry (MTI).
The upgraded CSFTA will provide Singapore businesses with enhanced trade facilitation and greater investment protection in China, as well as address investment barriers. Both sides will also explore greater cooperation in areas such as legal services and financial services. To keep abreast of global developments, the CSFTA will also be enhanced with new generation elements such as e-commerce and environmental management.
Said Singapore Minister for Trade and Industry Lim Hng Kiang, “A forwardlooking, substantive and comprehensive upgrade of the CSFTA will enhance support for on-going and future collaborations between Singapore and China.”
Both countries have agreed to try to complete the negotiations by the end of 2016.
They also signed the Framework Agreement and Supplementary Agreement and the Implementation Agreement between MTI and the Chongqing Municipal. Their third G-to-G project will focus on four priority areas of collaboration—financial services, aviation, transport & logistics, and information & communications technology.
Singapore Minister in the Prime Minister’s Office Chan Chun Sing said, “The third G-to-G project reflects our mutual commitment to take bilateral relations to a higher level. We will explore innovative measures and policy breakthroughs to catalyse the development of Western China. Given Western China’s strong potential for development in modern connectivity and modern services, this is an opportunity for Singapore companies to share their expertise and expand their presence in China.”
Photo: KaCey97078
