Driving commercial and political engagement between Asia, the Middle East and Europe
Driving commercial and political engagement between Asia, the Middle East and Europe
Driving commercial and political engagement between Asia, the Middle East and Europe
The European Union (EU) and Singapore signed a landmark EU-Singapore Free Trade Agreement (EUSFTA) on the sidelines of the 12th biennial Asia-Europe Meeting (ASEM) Summit on Friday, 19 October, the Straits Times reported. Singapore Prime Minister Lee Hsien Loong hailed the agreement as “an ambitious trade deal” and “a high quality arrangement” that would hopefully “encourage [other countries]” to ink similar free-trade deals.
The deal, which has been eight years in the making, aims to boost services, improve market access, and progressively eliminate tariffs between both parties. The EU is Singapore’s biggest foreign investor and third largest trading partner, with bilateral trade in goods exceeding SGD$98 billion last year. The impact of the EUSFTA goes to the heart of sectors and issues that matter for Singapore – with electronics, pharmaceuticals, chemical manufacturing and processed food products especially well-placed to benefit, according to the Business Times.
Conversely, the South China Morning Post reported that while Singapore is the EU’s biggest trading partner in goods and services within Southeast Asia, the EU itself is unlikely to see much benefit given the size of the deal relative to its economy. Instead, the agreement – the first between the EU and an ASEAN country – is a crucial stepping stone for the EU, which is also eyeing further deals with ASEAN as a whole.
Further, Channel News Asia reported that the new EUSFTA reflects both sides’ desire to emphasise the continued importance of free trade, especially at a time when protectionism is on the rise globally. Despite the prospect of a meeting between US President Donald Trump and Chinese President Xi Jinping at the upcoming G20 Summit in November, there are still no signs of de-escalation of the US-China trade war. The President of the European, Commission Jean-Claude Juncker, called the EUSFTA a “strong message of support for an international system based on rules, cooperation and multilateralism”.
