Second, Singapore has pursued a proactive policy of negotiating bilateral and regional free trade agreements with other economies. The aim is to expand Singapore`s economic space and allow our exporters preferential treatment, including duty-free access, to overseas markets, including the markets of the United States, China, Japan, the European Union, India, etc. CECA is one of 24 free trade agreements concluded by Singapore with many countries. There will be 25 free trade agreements when the EU-Singapore free trade agreement comes into force on 21 November. According to MTI, CECA would also guarantee service providers in India and Singapore access to the other country`s markets. To give you an idea of the scope, our free trade agreements account for more than 90% of Singapore`s trade. Now you see the importance of free trade agreements for our vital artery? Is there a difference between them? In theory, comprehensive economic partnership or cooperation agreements should have a broader scope than free trade agreements. In practice, there is no difference between them. The two terms are used interchangeably.
This means that we are extremely vulnerable to anti-trade measures and we are talking about trade barriers such as tariffs and quotas. In this context of stalling trade liberalization and the relocation of goods to trade in services, Singapore and like-minded nations saw free trade agreements as a useful way to further expand trade until the rest of the world catch up. Second, it is not well known that the United States invests more in Singapore than in any other Asian country and more than U.S. investments in China, India and South Korea combined. The main attraction is that Singapore has the best intellectual property rights system in Asia. U.S. investment has created many quality jobs for Singaporeans. Free Trade and WTO Singapore`s foreign trade is known to be three times larger than its economy. Trade is therefore our blood of life. The rise of Singapore and other East and South-East Asian countries is mainly due to the free and open trade and international division of labour. If you decide to take something away from a trade agreement, the country on the other side will not say “yes, please” and will not do anything about it.” Canada Log Export Plunge Emerges as First Possible TPP Violation Nikkei Asian Review, July 16, 2020 Each party to the negotiations must be prepared to make concessions to the other party or party. However, by the end of the negotiations, each party must have earned more than it has lost.
This is possible because free trade improves efficiency and free trade agreements are win-win agreements. Otherwise, there would be no agreement. The Ministry of Trade and Industry estimates that in 2018, free trade agreements have helped Singaporean companies benefit from tariff concessions of approximately $1.2 billion for sales to overseas markets and have expanded market access opportunities for their service sector in a number of sectors, such as financial services, educational services. , health, logistics and transportation services to create good jobs for Singaporeans.