Joint Press Statement on the Mid-term Review of the India-Singapore Comprehensive Economic Cooperation Agreement (CECA)
India’s Minister for Commerce and Industry, Kamal Nath, and Singapore’s Minister for Trade and Industry, Lim Hng Kiang, met in Singapore on 31 March 2006 for a Mid-term Review of the India-Singapore CECA.
The Ministers agreed that the mid-term review provided both sides with an opportunity to consider both the implementation of the agreement to date and how it could be further enhanced in order to provide an attractive and facilitative framework for businesses.
Both Ministers endorsed the suggestion that teams from both countries should engage in discussions to follow-up and improve on the CECA by 1 August 2006.
The two sides noted that the awareness generated during the CECA process and the subsequent entry into force of the agreement helped to boost bilateral trade and investments. Trade between Singapore and India has doubled over the last two years. India’s exports more than doubled during that time. Singapore emerged as the third largest investor in India in the year 2005 and rose two spots over the last year to become India’s seventh largest cumulative investor.
Singapore also noted that the increases in bilateral trade and outward investments in the year CECA was signed were the most significant among its FTA partners. Both sides agreed that there was immense potential for bilateral trade and investments to grow further, especially by working with third countries to enter the Indian market.
Singapore and India discussed the value of fine-tuning the provisions of the Avoidance of Double Taxation Agreement (DTA) with a view to further encouraging investments.
Both sides also noted that Singapore was actively considering developing a Special Economic Zone in India to bring a range of industries into India.
The Ministers welcomed the interest of Indian and Singapore banks to expand in each other's markets as banks play a critical role in facilitating trade and investments. Since the signing of CECA, Singapore has admitted both UTI Bank and Bank of Baroda. Singapore has also made an offer for the banking regulators from both sides to form a study team to consider Indian banks’ interest in obtaining a Qualifying Full Bank license.
The Ministers noted that the Mutual Recognition Joint Committee would be meeting to continue their work on the implementation of the mutual recognition agreements (MRAs) for electronics and electronic equipment, telecommunications equipment and egg products. Both countries also discussed a proposal from India on facilitating the entry of generic medicinal products.
Both India and Singapore were encouraged by the good progress made on the MRA on architectural services. India agreed with Singapore on the need to encourage the mutual recognition agreements pertaining to professionals MRAs for accountants, doctors, dentists and nurses to be concluded by 1 Aug 2006.
India agreed to improve the coverage of trade in goods under CECA. India also agreed to harmonize the general rule of origin under CECA in line with that agreed under the ASEAN-India Free Trade Agreement (AIFTA) in Goods when the AIFTA in Goods comes into effect.
The two Ministers agreed on the importance of promoting the use and understanding of the CECA among Singapore and Indian companies. Both sides reaffirmed their commitment to making the CECA a ‘living document’ and deepening the economic relationship.
MINISTRY OF COMMERCE AND INDUSTRY, INDIA
MINISTRY OF TRADE AND INDUSTRY, SINGAPORE
1 APRIL 2006