Question
Asst Prof Mahdev Mohan: To ask the
Minister for Trade and Industry (Trade) if he can provide an update on efforts
since May 2017 to ensure that the Singapore-European Union Free Trade Agreement
comes in force in its concluded or an alternative form.
Oral reply (to be attributed to Senior Minister of State for Trade & Industry Dr Koh Poh Koon)
-
Mr Speaker, on 16 May 2017, the European
Court of Justice (ECJ) issued its legal Opinion of the EU-Singapore Free Trade
Agreement (EUSFTA) as a “mixed agreement”. Specifically, the ECJ ruled that all
provisions in the EUSFTA fall under the exclusive competence of the EU with specific
exceptions. These exceptions are provisions relating to (i) non-direct foreign investment
such as portfolio investments; and (ii) the regime governing dispute settlement
between investors and States. Both these provisions fall under the shared
competence of the EU and its Member States.
- Since the release of the ECJ Opinion, the
EU has been discussing internally on the modality for negotiating and ratifying
FTAs, including the EUSFTA. This
includes the possibility of having the FTA cover the provisions that belong to the
EU’s exclusive competence, while provisions that are of shared competence are
incorporated into a separate Bilateral Investment Agreement.
- This would allow for a more targeted ratification
process. The FTA would then come into force after the approval of the Council
of the EU and the European Parliament. The separate Bilateral Investment
Agreement, which is of “shared competence”, would have to go through the
process of obtaining approval at the Council, the European Parliament, as well
as the 38 national and regional parliaments of all EU Member States.
- The Commission is in the process of consulting
internally with Member States and other stakeholders on the best way to take
the EUSFTA forward. Singapore has conveyed to the EU that our priority remains
to ensure an expeditious ratification of the EUSFTA. We will continue to work closely
with the Commission to have the FTA ratified in order for our businesses to
benefit from the agreement as soon as possible.