Singapore, UK sign free trade agreement

They have agreed to begin negotiations on a digital economy agreement next year.

Singapore and United Kingdom (UK) on 10 December signed a new free trade agreement (FTA), which will provide both parties with clarity on trading arrangements.

Under the UK-Singapore FTA, the countries will enjoy the same benefits they receive under the EU-Singapore FTA, which includes tariff elimination for goods trade and increased access to services and government procurement markets.

The UK-Singapore FTA also includes reduction of non-tariff barriers such as in electronics, motor vehicles and vehicle parts, pharmaceutical products and medical devices, and renewable energy generation.

“The agreement will provide continuity and certainty for businesses in both countries and send a strong signal of the UK’s commitment to deepen its engagement of the region,” said Trade and Industry Minister Chan Chun Sing, who represented Singapore in the signing.

The countries have also agreed to begin negotiations on a digital economy agreement (DEA) which will facilitate more seamless digital trade between the two countries next year. The DEA shall serve as a pathfinder for modern rules on digital trade and financial services between Europe and Southeast Asia.

“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.