China and Singapore to launch FTA Negotiations

CHINA AND SINGAPORE TO LAUNCH FTA NEGOTIATIONS

China and Singapore today agreed to launch negotiations for a bilateral free trade agreement (FTA). The decision was made at the 3rd Joint Council for Bilateral Cooperation (JCBC) meeting co-chaired by China's Vice Premier Wu Yi and Singapore's Deputy Prime Minister Wong Kan Seng, in Beijing. This follows the completion of the study by a Joint Experts’ Group showing long-term economic benefits to both sides. The decision was reaffirmed when DPM Wong Kan Seng called on Premier Wen Jiabao later in the day. 

Building on existing frameworks of cooperation, the enhanced liberalization in goods, services and investments are expected to benefit the people and economies of both countries. The FTA will also provide businesses and investors with improved policy regimes to enhance trade and investment. Beyond direct economic benefits to both sides, the China-Singapore FTA will also contribute to regional economic integration by injecting additional momentum into the establishment of the China-ASEAN Free Trade Area.

The China-Singapore FTA will be a positive development and will further cement our bilateral relations, elevating our strategic and economic ties to new heights.

Singapore looks forward to working with China to bring about the successful conclusion of the China-Singapore FTA.

The China-Singapore trade relationship has grown significantly in both scale and depth over the past decade.

Bilateral trade in 2005 reached a record of US$33.15 billion, a 26% increase over 2004. China is now Singapore’s 4th largest trading partner while Singapore is China’s 7th largest trading partner.

China is also Singapore’s top investment destination, with cumulative actual investments total nearly US$28 billion as at end-2005. Singapore is China’s 6th largest foreign investor and the largest from ASEAN.

MINISTRY OF TRADE AND INDUSTRY, SINGAPORE
25 AUGUST 2006