By Elishya Perera
SINGAPORE (CWBN)_ The United Kingdom and Singapore signed a Free Trade Agreement (FTA) today (Dec 10), which is expected to generate economic benefits for both countries following the expiration of the Brexit transition period on December 31.
“The UK and Singapore are like-minded partners with shared historical ties and excellent economic relations,” a joint statement issued by the two countries read. It noted that the UK is one of Singapore’s top three trading partners in the European Union (EU), while the Southeast Asian city-state is UK’s largest trade and investment partner from ASEAN.
According to the statement, the FTA will cover more than £17 billion (US$22.6 billion) of bilateral trade in goods and services, while enterprises will also benefit from tariff elimination for goods, increased access to respective services and government procurement markets, as well as reduction of non-tariff barriers in several key industries, including electronics, motor vehicles and vehicle parts and pharmaceutical products.
The Agreement is also expected support financial services, trade and investment for both countries, while both parties continue to discuss building links between their financial markets and strengthening their financial and economic cooperation.
Singapore’s Minister for Trade and Industry, Chan Chun Sing, said the FTA would provide certainty for business in both countries, and conveys a strong message regarding UK’s commitment to deepen its engagement in the Southeast Asian region.
Meanwhile, the statement also noted that the UK and Singapore intend to launch negotiations for a Digital Economy Agreement (DEA) in early Spring next year, which “aspires to be a model for international digital trade rules and cooperation”.
“Under the DEA, the UK and Singapore will aim to ensure an open, thriving, and safe digital environment for our consumers and businesses,” the statement read. The agreement is expected to promote interoperable digital systems which would harness interactions between financial services and the digital economy, and will help develop global standards for effective regulation in key areas such as cyber security.
According to the statement, the DEA will promote the flow of data across borders while maintaining high levels of personal data protection.
“Our intention to launch negotiations on a pioneering DEA between the UK and Singapore early next year also reflects both countries’ desire, as forward-looking and digitally advanced economies, to set the template for digital trade rules of the future,” Chan said.
As a member of the EU, the UK has automatically been party to around 40 trade agreements, which the EU had formed with more than 70 countries. However, the UK will no longer be party to these deals following the expiration of the Brexit transition period by the end of this year. Therefore, London has rolled over more than 20 of the existing agreements, which will come into effect from the beginning of next year.
