Singapore and China upgrade bilateral FTA, boost market access

Singapore and China signed 11 agreements on Monday 12 November, including an upgraded China-Singapore Free Trade Agreement (CSFTA), the Straits Times reported. Chinese Premier Li Keqiang and Singaporean Prime Minister Lee Hsien Loong witnessed the signing of the upgraded FTA and 10 other Memorandums of Agreement.

The expanded FTA, which has taken three years of discussion to upgrade, is poised to deepen bilateral trade and investment by giving Singapore businesses greater access to China’s legal, maritime and construction service sectors, as well as improved market access to the Chinese market. In return, Singapore will liberalise air transport, courier and environment sectors for Chinese businesses, the Business Times reported. Investment protection and customs procedures were improved, while three new cooperation fields – e-commerce, competition policy and environment – were added.

The CSFTA was first inked in 2009, and TODAYonline reported that it has increased trade and investment between the two sides by 4.6 percent and 12.2 percent respectively. China and Singapore pledged to advance connectivity and ensure the “partnership continues to progress with the times” by also incorporating the Belt and Road Initiative into their future plans of economic cooperation.

The agreement comes as Li arrives in Singapore for a five-day visit to attend the ASEAN Summit. The Summit also marks China’s 40^th anniversary of reform and the opening up of its economy, Channel NewsAsia reported. He used the occasion to reiterate China’s commitment to upholding an open and rules-based multilateral order in the face of rising protectionism.

The role of ASEAN in global trade and the importance of multilateral trading systems will be key talking points at Asia House’s major trade dialogue in Singapore on 22 November. Singapore’s Minister for Trade and Industry, Chan Chun Sing, will give the keynote opening address.