ENTRY INTO FORCE OF THE KOREA-SINGAPORE FREE TRADE AGREEMENT, 2 MARCH 2006

The Korea-Singapore Free Trade Agreement (KSFTA) will come into force tomorrow, after both countries have completed their legal and administrative procedures to implement the agreement.

With the entry into force of the KSFTA, 75% of Singapore’s total domestic exports to the Republic of Korea (ROK) will enjoy immediate tariff elimination. A further 14% of domestic exports will enjoy tariff-free access to the ROK market over the next 10 years. In return, Singapore will eliminate remaining tariffs which enable 100% of ROK’s exports to Singapore to enter duty-free with immediate effect.

Singapore’s service industries will benefit from enhanced access to the ROK services market in areas such as education, logistics and environmental services. Service providers in the ROK will gain access into Singapore’s construction, logistics and professional services markets. Furthermore, investors and investments from both countries will be protected by comprehensive commitments in the KSFTA.

The KSFTA, beyond liberalizing trade and investment, also contains a host of benefits which can be derived from cooperation in wide ranging areas such as broadcasting, environment, film and games, human resource development and intellectual property rights. Such cooperation will enable both countries to develop closer economic ties beyond conventional trade and investment liberalization.

The Korea-Singapore Free Trade Agreement (KSFTA) was signed between Minister for Trade and Industry Lim Hng Kiang and Republic of Korea (ROK) Minister for Foreign Affairs and Trade Ban Ki Moon on 4 August 2005.

MINISTRY OF TRADE AND INDUSTRY

1 MARCH 2006