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On Thursday (10 December 2020), Singapore and the UK have signed the UK-Singapore Free Trade Agreement (FTA). According to the Ministry of Trade and Industry (MTI), Singapore and UK companies will enjoy the same benefits from the EU – Singapore FTA (EUSFTA). 

Moreover, the EUSFTA will continue to apply to the UK during the Brexit transition period, with Singapore and the UK also working on an agreement to maintain trade continuity after the transition period ends on 31 December 2020. 

1. Benefits of Free Trade Agreement (FTA) between Singapore and the UK

Under this FTA, Singapore and the UK will take advantage of every following opportunity in trading, including: 

• Provide Singapore and UK companies with certainty and clarity in trading arrangements between both countries.
• Cover more than £17 billion (S$30.29 billion) of bilateral trade in goods and services.
• Continue to benefit from tariff elimination for goods trade, increased access to the respective services and government procurement markets, and reduction of non-tariff barriers in main fields (i.e. electronics, motor vehicles and vehicle parts, pharmaceutical products and medical devices, and renewable energy generation)

The FTA was signed by Singapore’s Minister for Trade and Industry Chan Chun Sing, and UK Secretary of State for International Trade Elizabeth Truss in Singapore to strengthen and deepen the relationship between Singapore and the UK.

2. Negotiations on Singapore – UK DEA

Singapore and the UK plan to launch negotiations in early spring next year. According to MTI, the DEA will facilitate more seamless digital trade and business between the UK and Singapore by promoting cross – border digital connectivity and interoperability of digital standards systems.

Mr. Chan also remarked that the 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.”

The two countries have also committed to begin negotiations on a high standard investment protection agreement within two years of the UK-Singapore FTA’s entry into force. They will try to conclude the negotiations within four years of the FTA’s take effects. 

In conclusion, FTA is the first such bilateral trade deal between the UK and an ASEAN member state. Its significant benefits will be crucial in ensuring a strong post-pandemic recovery for the world.

If you require further to understand FTA and how to realize commercial benefits through FTA after registering a business in Singapore. Feel free to call/ WhatsApp us at +65 90612851 or email us at aceglobalacct@gmail.com. Alternatively, you may leave us a reply using our contact form below.

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