Singapore has been known for its economic success over the past few decades. This small island nation has been able to achieve sustained growth and prosperity by adopting an open and outward-looking strategy towards trade. In fact, Singapore is one of the most open economies in the world, with trade accounting for more than three times its GDP.
Singapore`s success can be attributed to its trade agreements with other countries. These agreements have allowed Singapore to expand its market access, increase exports, and attract foreign investment. Singapore has signed numerous bilateral and multilateral trade agreements with other countries. Here are a few that are worth mentioning:
1. Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
The CPTPP is a free trade agreement between 11 countries, including Singapore. The agreement eliminates tariffs and non-tariff barriers on trade between the member countries. It covers a range of sectors, including goods, services, investment, intellectual property, and e-commerce. The CPTPP provides Singapore with access to markets such as Japan, Canada, and Mexico.
2. European Union-Singapore Free Trade Agreement (EUSFTA)
The EUSFTA is a trade agreement between the European Union (EU) and Singapore. The agreement was signed in October 2018 and came into force on 21 November 2019. The agreement eliminates tariffs on goods and opens up markets for services and investment. The EUSFTA provides Singaporean businesses with access to a market of over 500 million people in the EU.
3. ASEAN Free Trade Area (AFTA)
The AFTA is a trade agreement between the ten member states of the Association of Southeast Asian Nations (ASEAN), including Singapore. The agreement aims to reduce tariffs among member countries to promote intra-regional trade. The AFTA has been successful in promoting trade between ASEAN countries, with intra-ASEAN trade accounting for over 25% of ASEAN`s total trade.
4. Singapore-India Comprehensive Economic Cooperation Agreement (CECA)
The CECA is a bilateral trade agreement between Singapore and India. The agreement covers trade in goods, services, and investment. The CECA has helped to increase bilateral trade between Singapore and India from $6.7 billion in 2004 to $18.5 billion in 2019.
In conclusion, Singapore`s trade agreements are a key factor in its economic success. These agreements have helped to open up new markets for Singaporean businesses, increase exports, and attract foreign investment. As Singapore continues to pursue an open and outward-looking trade strategy, we can expect to see more trade agreements being signed in the future.