Brussels, 17/12/2012 (Agence Europe) - The EU has concluded its first trade agreement in the ASEAN region. The agreement with Singapore will provide the European services sector with major gains.
On Sunday 16 December, after two and half years of negotiations, the EU clinched a free-trade agreement with the city-State of Singapore, its 13th-largest trade partner, where more than 8,000 European businesses are present. The agreement, which has still to be approved by the political authorities of both sides in spring 2013, was concluded after the final negotiations in Singapore this weekend between Trade Commissioner Karel De Gucht and his Singaporean opposite number, Lim Hng Kiang.
“Singapore is a dynamic market for EU companies and is a vital hub for doing business across Southeast Asia. This agreement is key to unlocking the gateway to the region and can be a catalyst for growth for EU exporters”, said De Gucht in a press release. Following the deal with South Korea, which was concluded in 2010 and entered into force in 2011, the agreement reached with Singapore confirms the EU's presence in Asia. “But we do not intend to stop here - I hope it will open the doors for free-trade agreements with other countries in the ASEAN region”, the Commissioner stressed. Formal negotiations are already under way with Malaysia and Vietnam, and preliminary talks are in progress with Thailand, Indonesia and the Philippines. A partnership and cooperation agreement, including a trade plank, will be negotiated with the Sultanate of Brunei.
In the meantime, the agreement with Singapore, the largest economy of the south-east Asian bloc, will open up new opportunities for Europe in the services sector - insurance, banking and financial services in particular - and in public procurement contracts. It will help to reduce the burden of red tape and double-testing that make life difficult for business. The deal will facilitate the access of industrial and agricultural products on an important export market, through greater recognition of EU standards; for example, Singapore will agree to import European manufactured cars on the basis of EU technical and safety standards and approvals. In the field of agriculture, protected designations of origin, such as Bordeaux wines or Parma ham, will enjoy better protection.
The agreement also includes a chapter on the sustainable and green economy, aiming to stimulate trade and investment in green technologies and renewable energy and to promote green public tendering. Lastly, the EU and Singapore will continue negotiations on the investment chapter, which started later.
The trade in goods and services between the EU and Singapore was worth €74 billion in 2011, with a surplus balance in favour of the EU27. Singapore is one of the main destinations for European investment in Asia, but is also the second-largest Asian investor in the EU after Japan. The stock of bilateral investments reached €190 billion in 2010. (EH/transl.fl)