Czech Business Today
Singaporean gateway to EU-ASEAN trade cooperation opened
On the 13th of February 2019, the European Parliament endorsed three agreements that will enhance cooperation between the EU and Singapore. Apart from the free trade agreement, MEPs gave their green light also to an investment protection agreement and a partnership and cooperation agreement.
While the trade agreement will come into force shortly after the conclusion of the legislative process, the investment protection and the partnership and cooperation agreement will have to be ratified by national Parliaments of EU Member States. Czech business associations warmly welcomed the approval of the agreements by the European Parliament. It is a very important step towards a long-term cooperation not only with Singapore, which is already a major trading partner of the EU, but also to other ASEAN countries, as it is the first EU free trade agreement with an ASEAN member. ASEAN is the 3rd biggest trading partner of the EU outside Europe and the estimated growth of 4.8% this year is a signal that the trade cooperation can be further enhanced.
According to the agreement, almost all custom duties will be eliminated within the next five years which will create further opportunities for European and Czech companies. Although it still has to be approved by the Member States, the investment protection agreement is equally important as the volume of bilateral investment between the EU and Singapore reached more than 250 billion EUR in 2016. Czech businesses are also pleased that the EU is keeping its promise and continues to support open global trade markets.
Ways to enhance mutual cooperation between Czech and Singaporean businesses were discussed during a business mission led by the Prime Minister Andrej Babiš that took place at the beginning of this year. It was the first business mission of an EU Member State to Singapore after its signature in October 2018 and the Czech-Singaporean cooperation will continue through 2019 as a business mission of Singaporean entrepreneurs led by the Prime Minister Lee Hsien Loong is being planned later this year.
