Singaporean Minister for Trade and Industry Chan Chun Sing and UK Secretary of State for International Trade Elizabeth Truss signed a bilateral free trade agreement on 10 December.

Illustrative image (Photo: UK Investor)

They also agreed to build a framework of the UK-Singapore Digital Economy Agreement (DEA) and launch negotiations on the DEA next year.

The DEA will play a vanguard role for modern rules on digital trade and financial services between Europe and Southeast Asia.

Under the UK-Singapore FTA, companies from both countries will enjoy the same benefits they are receiving under the EU-Singapore FTA.

These benefits include tariff elimination for goods trade and increased access to services and government procurement markets. There would also be a reduction of non-tariff barriers, including in four major sectors of electronics, motor vehicles and vehicle parts, pharmaceuticals and medical devices, and renewable energy generation.

Chan said the UK-Singapore FTA will provide Singapore and UK companies with certainty and clarity in trading arrangements between both countries.

Alongside the deal, both sides also pledged to launch talks to sign a high-standard investment protection agreement in the near future. They hoped that talks on the deal will start after two years and be signed within four years since the UK-Singapore FTA takes effect.

Source: VNA