GULF COOPERATION COUNCIL AND SINGAPORE TO LAUNCH FTA NEGOTIATIONS

The Gulf Cooperation Council (GCC) and Singapore have agreed to start negotiations for a free trade agreement (FTA). The announcement was jointly made by the GCC Secretariat and the Singapore Ministry of Trade and Industry during Singapore Prime Minister Lee Hsien Loong’s official visit to Saudi Arabia from 24 to 27 November 2006.

The GCC-Singapore FTA will be a milestone in the strengthening ties between the GCC

countries[1] and Singapore, and will signify both parties’ commitment to the establishment of an enduring and mutually-beneficial relationship. As a key institutional framework that will strategically link the Gulf region and Singapore, the FTA will help to promote and facilitate the greater flow of goods, services, investment and people between the two economies and play a contributory role towards the process of GCC economic integration.

Economic relations between the GCC and Singapore have grown significantly in both scope and depth over the past few years. The GCC is currently Singapore’s 7th largest trading partner, with bilateral trade amounting to US$23.7 billion in 2005, a 43% increase over 2004. Likewise, Singapore is becoming an increasingly significant economic partner for many of the GCC countries.

The GCC-Singapore FTA will contribute to regional and global trade liberalization and strengthen the multilateral trading system. Both parties are committed to an FTA that covers substantially all trade and is consistent with World Trade Organization (WTO) obligations.

The GCC and Singapore have agreed to hold the first round of negotiations in early 2007, and to endeavor to conclude the negotiations expeditiously.

MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

25 NOVEMBER 2006