The China-Singapore Free Trade Agreement (CSFTA) was signed after eight rounds of negotiations held over two years in both Singapore and Beijing. The CSFTA negotiations were concluded on 3 September 2008 in Beijing.
The CSFTA was signed between Singapore Minister for Trade & Industry Lim Hng Kiang and PRC Minister for Commerce Chen Deming. The ceremony was witnessed by both Prime Minister Lee Hsien Loong and PRC Premier Wen Jiabao, on 23 October 2008 in Beijing.
This is the first comprehensive bilateral FTA that China has signed with another Asian country, covering trade in goods, trade in services, rules of origin, trade remedies, sanitary measures, technical barriers to trade, customs procedures, economic cooperation and dispute settlement, among others.
The CSFTA entered into force on 1 January 2009.
Benefits to Singapore Exporters to China
The CSFTA will enhance Singapore companies' access to the vast Chinese market and further boost our excellent bilateral trade and investment relations. Currently, China is Singapore's third largest trading partner and largest investment destination.
Building on Trade in Goods Chapter commitments of China and Singapore under the Framework Agreement on Trade in Goods between ASEAN and China, the CSFTA will provide for accelerated tariff concessions that will enhance the competitiveness of Singapore goods vis-a-vis other foreign imports into China.
The CSFTA will provide preferential coverage for about 95% of Singapore's exports to China, with a trade value of more than S$18 billion. More than 85% of Singapore exports to China will be at zero-tariff upon the CSFTA's entry into force on 1 January 2009. An additional 10% will become duty-free on 1 January 2010. Key exports that will benefit include petrochemicals, processed foods, and electronics and electrical products.
Singapore and China have agreed to simplify our customs procedures to facilitate Goods trade. The key facilitative commitments include Third Party Invoicing, Advance Ruling to provide traders with more certainty and enhancement of the application of risk management to facilitate the clearance of low risk consignments.
The above will assist Singapore companies to strengthen their competitive position in the Chinese market.
