THE World Trade Organisation's (WTO) Committee on Regional Trade Agreements (RTAs) considered the Free Trade Agreement (FTA) between the European Union and Singapore and another between Peru and Australia during their March 22 meeting.
The EU-Singapore FTA entered into force on November 21, 2019. Under the agreement, the EU will eliminate duties on more than 99 per cent of tariff lines for imports from Singapore by 2025, while Singapore’s imports from the EU will become fully duty free. Moreover, both parties agreed to improve market access for trade in services and investment compared to their commitments under the WTO General Agreement on Trade in Services (GATS).
Singapore at the meeting said the high-standard agreement helped cushion the impact of the COVID-19 crisis on bilateral trade. EU-Singapore bilateral trade in goods amounted to SGD 90 billion in 2020, or close to 10 per cent of the nation’s total trade in goods that year.
The EU said the FTA is a "stepping stone towards more engagement between the two economies." It noted that the agreement provides additional market access for postal services, telecommunications, maritime transport and computer services.
Singapore is the EU's fifth largest trade partner in services and sixth highest recipient of their direct investment, pointed the EU.
Members also considered the Peru-Australia FTA which entered into force on February 11, 2020. Tariff elimination will be completed in 2023 by Australia and 2029 by Peru.
As part of the FTA, Australia and Peru will maintain duties on respectively 12 and 48 tariff lines after full implementation. Trade in services are also liberalised and there are provisions on Sanitary and Phytosanitary (SPS) measures, Technical Barriers to Trade (TBT), competition, environment and labour.
At the meeting, Peru said that implementing the "comprehensive and modern" FTA will contribute to a significant increase in bilateral trade and contribute to economic recovery in the aftermath of the COVID-19 pandemic. It helps facilitate value chains between the Americas and Asia and establishes legal certainty and more options for traders and consumers.
Australia highlighted benefits for goods like merino wool, base metals, mineral fuels, paper and pharmaceuticals, and for services like professional services, financial services, telecommunications, health services and tourism.
It said theagreement is fully consistent with WTO principles and rules and provides substantial liberalisation across all sectors, delivering outcomes more ambitious than in WTO agreements. |
