Singapore, China agree on bilateral FTA

Singapore, Aug 26 (UNI) Singapore and China have agreed to launch negotiations for a bilateral free trade agreement (FTA), after the third meeting of the Joint Council for Bilateral Cooperation (JCBC) held in Beijing.

The decision follows the completion of the study by a joint experts' group showing long-term economic benefits to both sides, Singapore's Trade and Industry Ministry said in a statement.

''Building on existing frameworks of cooperation, the enhanced liberalisation in goods, services and investments are expected to benefit the people and economies of both countries,'' the Ministry said.

The FTA would 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 would also contribute to regional economic integration by injecting additional momentum into the establishment of the China-ASEAN Free Trade Area, it said.

''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.'' 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 33.15 billion dollars, a 26 per cent increase over 2004.

China is Singapore's top investment destination, with cumulative investments standing at 28 billion dollars at the end of 2005. It is also the fourth largest trading partner of Singapore.

On the other hand, Singapore is China's seventh largest trading partner and sixth biggest foreign investor and the largest from ASEAN.

The China-Singapore FTA announcement came after Singapore Deputy Prime Minister Wong Kan Seng and China's Vice Premier Wu Yi co-chaired the JCBC meeting in Beijing.

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