MFA: Free Trade Agreement with Singapore opens new opportunities for companies in Southeast Asia
The Free Trade Agreement between the EU and Singapore will enter into force on 21 November 2019.
“This is the first bilateral trade agreement between the EU and an ASEAN country. Its entry into force lays the foundation for strengthening the EU's trade agreement network in Southeast Asia,” says Ville Skinnari, Minister for Development Cooperation and Foreign Trade.
“Singapore offers interesting business opportunities in Finnish companies’ areas of strength, such as health care and services for old people, digitalisation and renewable energy,” Minister Skinnari continues.
The agreement will dismantle technical trade obstacles, remove customs duties and open opportunities for both service trade and the public procurement market. The parties to the agreement also undertake to maintain and promote the norms concerning the environment and working life.
Singapore is an open economy, and it already applies exemption from customs duty to the majority of commodities in goods trade. However, the Free Trade Agreement guarantees commitment to exemption from customs duty, in addition to which Singapore has undertaken to remove nearly all the remaining customs duties at the latest within five years.
At the moment, around one-half of imports of Singaporean products to the EU area are duty-free. As the agreement comes into force, the EU will immediately exempt 80 per cent of Singapore's imports. Trade will be exempt from duties almost fully after the transition periods of 3–5 years.
Service trade accounts for about 75 per cent of Singapore's economy. Opportunities for increasing service trade can be considered the most important achievements of the agreement. Singapore will open its markets in several export branches important for Finland, such as construction services, IT services and research and development services. In addition, the agreement opens up new possibilities for exports of environmental services.
Companies already have relatively good access to Singapore's public procurement. The Free Trade Agreement increases opportunities for market access by including new procurement units in the agreement and by lowering the threshold values of open tender competitions. The agreement also improves the transparency of Singapore's procurement procedures.
Singapore is the biggest trading partner for Finland and the EU in Southeast Asia. In 2018, the value of Finland's goods exports totalled EUR 186 million and the value of imports was EUR 167 million. Services exports amounted to EUR 361 million and the value of imports was EUR 266 million.
Inquiries: Saara Harju, Desk Officer, Market Access Unit, +358 295 350 319.
The email addresses of the Ministry for Foreign Affairs are in the format firstname.lastname@example.org.
About Ulkoministeriö / Utrikesministeriet
Subscribe to releases from Ulkoministeriö / Utrikesministeriet
Subscribe to all the latest releases from Ulkoministeriö / Utrikesministeriet by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from Ulkoministeriö / Utrikesministeriet
MFA: EU development ministers to discuss the impacts of COVID-19 pandemic in Africa28.9.2020 15:57:37 EEST | Press release
The meeting of the EU development ministers on 29 September will be held as a video conference. Minister for Development Cooperation and Foreign Trade Ville Skinnari will represent Finland at the meeting.
UM: EU:s utvecklingsministrar diskuterar coronapandemins konsekvenser för Afrika28.9.2020 15:56:23 EEST | Tiedote
EU:s utvecklingsministrars möte hålls den 29 september som videokonferens. Finland representeras vid mötet av utvecklings- och utrikeshandelsminister Ville Skinnari.
UM: EU:n kehitysministerit keskustelevat koronapandemian vaikutuksista Afrikassa28.9.2020 15:55:20 EEST | Tiedote
EU:n kehitysministereiden kokous järjestetään 29. syyskuuta videoyhteydellä. Suomea kokouksessa edustaa kehitysyhteistyö- ja ulkomaankauppaministeri Ville Skinnari.
MFA: Finland to attend joint EU crisis management and hybrid threats exercise21.9.2020 14:46:43 EEST | Press release
Finland will participate in the EU Integrated Resolve (EU IR 20) Exercise, which will be held between 21 September and 4 December 2020.
UM: Finland deltar i EU:s gemensamma krishanterings- och hybridövning21.9.2020 09:24:53 EEST | Tiedote
Finland deltar 21.9.-4.12.2020 i Europeiska unionens gemensamma övning EU Integrated Resolve 2020 som gäller beslutsfattandet vid hantering av kriser och hybridhot.
UM: Suomi osallistuu EU:n yhteiseen kriisinhallinta- ja hybridiharjoitukseen21.9.2020 09:24:03 EEST | Tiedote
Suomi osallistuu Euroopan unionin yhteiseen EU Integrated Resolve 2020 -päätöksentekoharjoitukseen, joka järjestetään 21.9.- 4.12. välisenä aikana.
In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.Visit our pressroom