Economic and Trade Agreements

Singapore has concluded and implemented the following agreements:

• free trade agreements with Australia, China, Costa Rica, Jordan, Korea (ROK), Panama, Peru, Sri Lanka, Turkey and the United States;
• a free trade agreement with the Gulf Cooperation Council;
• a free trade agreement with the European Free Trade Association (EFTA, comprising of Switzerland, Iceland, Liechtenstein and Norway);
• a Comprehensive Economic Cooperation Agreement with India;
• the Economic Agreement for a New Age Partnership with Japan; and
• the Comprehensive Economic Partnership with New Zealand.

Singapore also entered into the Agreement with the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu on Economic Partnership (ASTEP), a comprehensive agreement that will liberalize and facilitate trade in goods, trade in services and investments between both markets. ASTEP provides preferential tariff access to Singapore exporters and also includes provisions on intellectual property, government procurement, e-commerce, competition and dispute settlement.

Singapore is currently negotiating free trade agreements with the following:

• Canada
• the Eurasian Economic Community
• Kuwait
• Mexico
• Pakistan
• Qatar
• Taiwan
• Ukraine

Singapore is a member of the ASEAN Free Trade Area (AFTA), which was initiated in 1992. AFTA seeks to eliminate tariff barriers among the ASEAN countries, and the key to this is the Common Effective Preferential Tariff (CEPT) Scheme, under which tariffs are gradually reduced to 0-5% by 2010 or 2015.

Singapore is also a signatory to the ASEAN Framework Agreement on Services (AFAS), which is aimed at strengthening the cooperation among service suppliers in the ASEAN region, the reduction of restrictions to trade in services and to progressively liberalize trade in services among ASEAN counties.

In addition, Singapore is also a party to the Framework Agreement on the ASEAN Investment Area (AIA), which is aimed at establishing the ASEAN region as a competitive investment area by 1 January 2010, and a liberal and transparent investment environment and free flow of investments in the region by 2020.

As a member of ASEAN, Singapore is a party to the following:

• the ASEAN-China Free Trade Agreement, under which a zero tariff market took effect for the ASEAN-6 (including Singapore) on 1 January 2010, and is expected to be achieved by 2015 for the rest;
• the ASEAN-Korea Framework Agreement on Comprehensive Economic Cooperation, under which tariffs on 90% of products were eliminated as from 1 January 2009. A Free Trade Area for Trade in Goods is intended to be realized by 2012 for the ASEAN-6 (including Singapore) and by 2018 for the rest;
• the ASEAN-Japan Agreement on Comprehensive Economic Partnership, under which tariffs on 90% of imports from Japan are expected to be eliminated by the ASEAN-6 (including Singapore) within 10 years of the agreement taking effect. A more gradual tariff elimination table has been set for the remaining four ASEAN members;
• the ASEAN-India Framework Agreement on Comprehensive Economic Cooperation, which aims to establish an ASEAN-India Free Trade Area with 5 ASEAN members (including Singapore) by 31 December 2012 and with the remaining members by 31 December 2017;
• a free trade agreement between ASEAN and Australia and New Zealand; and
• negotiations on free trade agreements between ASEAN and India and Japan (services and investment).

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership, which is a free trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, was finalized on 23 January 2018 and entered into force on 30 December 2018.

Negotiations for a European Union-Singapore Free Trade Agreement commenced in May 2007 and the negotiations with Singapore were finalized on 17 October 2014. The agreement was signed on 19 October 2018 and will come into force after it is ratified by both parties.

Negotiations on the Regional Comprehensive Economic Partnership (ASEAN members, Australia, China, India, Japan, Korea (Rep.) and New Zealand) commenced in November 2012 and are continuing.