China and Singapore signed an upgraded bilateral free trade agreement, a memorandum of agreement, and a framework agreement on Nov. 12 in a step aimed at allowing more open market access for both countries.
The slew of agreements gives Singapore a "VIP" access to China's businesses, including lower tariffs on deals involving the petrochemical industry, legal, maritime, and construction services sectors.
The China-Singapore Free Trade Agreement Upgrade Protocol was signed between Singapore's Minister for Trade and Industry Chan Chun Sing and China's International Trade Representative and Vice Minister of Commerce Fu Ziying.
The signing was witnessed by Chinese Premier Li Keqiang and Singaporean Prime Minister Lee Hsien Loong.
The event also jumpstarted Premier Li's five-day visit to Singapore.
Under the upgraded trade agreement, the two countries upheld investment protection, customs procedures, and trade facilitation, and trade remedial measures. Both nations also reiterated respective commitments in new developments involving the e-commerce industry. The updated free trade agreement will take effect after China and Singapore's official ratification which will be subsequently confirmed.
The first China-Singapore Free Trade Agreement took effect on Jan. 1 2009. It served as the first comprehensive bilateral free trade agreement between the two nations. Ever since bilateral trade between the two Asian countries increased at 4.6 percent and investments grew at 12.2 percent per year on average.
Since 2013, China is Singapore's largest trading partner while the latter is Beijing's largest foreign investor. By 2017, the bilateral agreement between Singapore and China peaked to $99 billion.
Chan said the upgraded free trade agreement demonstrated the countries' commitment towards closer bilateral economic relations. He described the China-Singapore Free Trade Agreement as the "cornerstone" of the long-standing relations between the two nations.
Also signed on Monday was a memorandum of understanding to develop the New International Land-Sea Trade Corridor under the China-Singapore Demonstrative Initiative on Strategic Connectivity.
Under the memorandum of understanding, China and Singapore will prioritize projects involving financial services, aviation, transport and logistics, information and communications technology. Entities involved in this MOU are expected to accelerate trade through efficient data gathering, digital and financial flows, and standardization of logistics practices and customs cooperation.
The two Asian countries also signed a framework agreement on Cooperation in the Elevated China-Singapore Guangzhou Knowledge City. This agreement was signed between Singapore's Minister for Education and Co-Chairman of the Singapore-Guangdong Collaboration Council Ong Ye Kung and Vice Minister Fu. This signing was also witnessed by Prime Minister Lee and Premier Li.
