Following our client alert of 19 February, we confirm that the EU-Singapore Free Trade Agreement (FTA) will enter into force on 21 November 2019.
As a reminder, the agreement provides significant benefits for economic operators in the EU and Singapore, in particular with regard to the reduction of customs duties. As soon as it enters into force, about 84% of customs duties on goods exported to the EU will be abolished. Singapore’s tariff barriers for products of EU origin are already low and will be completely abolished. The agreement also incorporates preferential rules of origin including the notion of “ASEAN cumulation”: for certain products listed in Annex D of the Protocol on the Rules of Origin, the incorporation of certain raw materials originating in other ASEAN Member States does not prevent Singapore origin.
Another essential interest of the FTA is the removal of technical and non-tariff barriers on goods, particularly in the electronics, food and pharmaceutical sectors.
The FTA also contains important provisions on intellectual property protection, public procurement and sustainable development.
Finally, the EU-Singapore agreement aims to encourage investment through a separate specific agreement. This investment protection agreement will enter into force after being ratified by all EU Member States in accordance with their own national procedures.
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FREE TEST TO CHECK THE INTEREST FOR YOUR COMPANY OF THIS AGREEMENT
In the current context of trade tensions between the USA, China and the European Union and the weakening of the WTO agreements, the forthcoming entry into force of this Free Trade Agreement is a real opportunity for the European and Singaporean companies concerned.
DS Avocats’ Customs and Trade team is at your disposal to assist you free of charge in assessing the impact and interest of this agreement in your business. If you are interested in this proposal, please let us know, and we will send you a questionnaire whose answers will allow us to give you a first opinion.
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