SINGAPORE-COSTA RICA FREE TRADE AGREEMENT ENTERS INTO FORCE
Minister Lim Hng Kiang shared with Costa Ricans Singapore’s strategy for sustainable economic growth
The Singapore-Costa Rica Free Trade Agreement (SCRFTA) has entered into force on 1 July 2013. To mark the significance of the agreement for both countries, a public conference was held on 18 July 2013 in San Jose, Costa Rica. The conference discussed Singapore’s competitiveness, innovation and economic growth strategy. The conference also outlined what companies in both countries can expect with the SCRFTA in force.
Under the SCRFTA, Singapore and Costa Rican companies will enjoy greater access to each other’s markets. It will also pave the way for stronger trading links between Costa Rica and Singapore.
SCRFTA opens up more opportunities
Singapore’s Minister for Trade and Industry, Mr Lim Hng Kiang said: “With the agreement now in force, it will open up more business and investment opportunities that Singapore and Costa Rica companies should take advantage of. Companies can also leverage on the strategic locations of both countries to reach out to the wider markets in Latin America and Asia.”
Bilateral trade between Singapore and Costa Rica has increased steadily over the years. In 2012, Costa Rica was Singapore’s 7th largest Latin American trading partner and Singapore’s 63rd largest trading partner overall. In the same year, total bilateral trade reached S$973 million, a 13.8% increase from 2011.
There are already Singapore-based companies with a presence in Costa Rica, such as APL (a subsidiary of NOL) and Olam International Ltd. Sectors in Costa Rica that have potential future opportunities for Singapore companies to venture into are oil refining, infrastructure, energy, transport and logistics, e-services and tourism.
Singapore shares its growth strategy
The conference was attended by approximately 100 participants, which included Congressman, university professors, entrepreneurs and students from Costa Rica. Minister Lim Hng Kiang discussed Singapore’s competitiveness, innovation and economic growth strategy and exchanged ideas on growing both markets. Minister Lim also graced a photo exhibition at the sidelines of the conference, together with Mrs. Anabel Gonzalez, Costa Rica’s Minister for Foreign Trade. This exhibition gave the Costa Ricans a glimpse into life and culture in Singapore.
During his trip, Minister Lim also paid a courtesy call to Mr. Luis Liberman, Vice President of Costa Rica. He also met with a few Ministers, which included the Minister for Foreign Affairs and Minister for Environment.
About SCRFTA
The SCRFTA is a broad-based and comprehensive agreement. With it now in force, the key outcomes include:
- Tariff elimination for all products – Costa Rica will be eliminating custom duties for 90.6% of its tariff lines. Tariffs for the remaining products will be eliminated over a period of 10 years, with the possibility of accelerated tariff elimination. For Singapore, it would be granting immediate duty free access for all imports from Costa Rica;
- Increased trade facilitation with enhanced cooperation and improved transparency relating to sanitary and phytosanitary measures, standards and conformance as well as customs procedures;
- A liberalising framework that encourages trade in services and investments flows between the countries;
- A commitment on both sides to ensure that companies would be able to compete on an equal footing with domestic suppliers for government procurement contracts, above certain thresholds; and
- A framework for cooperation in wide-ranging areas to promote economic and social development in both countries.
The SCRFTA was initiated in December 2008 and concluded in January 2010, after four rounds of negotiations. It was signed in April 2010 by Singapore’s Second Minister for Trade and Industry, Mr S Iswaran, and Costa Rica’s then-Minister of Foreign Trade, Mr Marco Vinicio Ruiz.
This is the third bilateral Free Trade Agreement (FTA) that Singapore has entered into with Latin American countries (after Panama and Peru). For Costa Rica, this is the second FTA that they have with an Asian country after China.
MINISTRY OF TRADE AND INDUSTRY
ISSUED ON 19 JULY 2013