The Gulf Cooperation Council – Singapore Free Trade Agreement (GSFTA) enters into force today, 1 September 2013.
The agreement will further enhance Singapore’s growing economic relations and trade with the Gulf Cooperation Council (GCC), consisting of six countries in the Middle East – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE). The GSFTA is a comprehensive free trade agreement covering trade in goods, trade in services, investments, rules of origin, customs procedures, government procurement, electronic commerce and economic cooperation.
Singapore is the first non-Middle East country to have a Free Trade Agreement (FTA) with the GCC. This FTA is Singapore’s second with the Middle East, after the Singapore-Jordan FTA in 2004. For the first time, the GCC countries have committed to recognise the Singapore MUIS Halal Standards (SMHS) as similar and consistent to their domestic Halal Standards. Four out of the six GCC countries have already committed to recognise SMHS and another two countries (Bahrain and Saudi Arabia) will start negotiations shortly to do the same. This will open up more opportunities in Singapore’s export of Halal products to the GCC states.
Highlighting the significance of the agreement, Mr Lee Yi Shyan, Senior Minister of State for Trade and Industry said, “The GSFTA coming into force will bring the strong bilateral and economic ties between Singapore and the six GCC economies to a new level. Already, there are many Singapore and GCC companies actively pursuing opportunities and partnerships with each other. The GSFTA will further enhance Singapore’s role as a Gateway City by connecting the two large regions of Asia and the Middle East & North Africa.”
The GCC is currently Singapore’s fifth largest trading partner and accounts for 35% of Singapore’s oil imports. Bilateral trade with the GCC reached a record high of S$68.6 billion in 2012, an increase of 62% since 2007.
Since 2004, Singapore companies have secured over S$20.8 billion of projects in the GCC states, some of which are mega projects worth more than S$1 billion each. Over the years, there has also been an increase in the number of bilateral forums between Singapore and GCC to facilitate regular visits and exchanges.
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MINISTRY OF TRADE AND INDUSTRY
MINISTRY OF FOREIGN AFFAIRS
1 SEPTEMBER 2013