EU-Singapore Free Trade Agreement (EUSFTA)

EU-Singapore Free Trade Agreement (EUSFTA)

The EUSFTA signals the EU's commitment to step up its engagement with Southeast Asia, and will enhance region-to-region connectivity between the EU and ASEAN. It is the first FTA between the EU and an ASEAN member state. It was signed on 19 October 2018, and entered into force on 21 November 2019.

The EUSFTA is a comprehensive FTA removing all tariffs on both sides and contains chapters on intellectual property, liberalising services and investment market access, public procurement, competition, reducing sanitary and phytosanitary (SPS) measures and non-tariff barriers, including on renewable energy generation. The EUSFTA also contains a dedicated Chapter on Trade and Sustainable Development (TSD), which includes strong commitments on sustainability and labour issues, including the protection of labour rights and the environment.

Apart from the EUSFTA, the EU-Singapore Investment Protection Agreement (EUSIPA) is an investment protection agreement that complements the market liberalisation commitments in the EUSFTA. When ratified, it will provide enhanced investment protection through modern provisions on investment protection that are not contained in the existing bilateral agreements such as clearer investment protection standards and new rules for resolving investment disputes. As a mixed competence agreement, the EUSIPA will have to be approved by the national and regional parliaments of EU Member States before it enters into force.

Key features of the EUSFTA

• Tariff elimination. Customs duties on both EU and Singapore products have been eliminated. Key products originating in Singapore (either produced or processed) will be able to enter the EU tariff-free.

• Enhanced market access to services sectors. Such as business; telecommunication; computer-related; environmental; transportation; and manufacturing services.

• Reduced non-tariff barriers. Lower operational cost with the reduction of duplicative testing and certification procedures in key sectors such as electronics, motor parts and vehicles, pharmaceuticals and renewable energy generation.

• Government procurement opportunities. Opportunities to participate in public tenders, including in the transport, computer, landscape architecture services.

• Geographical indications registry. Enhanced protection of Intellectual Property Rights (IPR) and greater consumer recognition.

For more information on the EUSFTA, please read the press release.