21 November 2019 marked an important milestone in German-Singaporean relations with the EU-Singapore Free Trade Agreement (EUSFTA) entering into force. The agreement is a modern and comprehensive Free Trade Agreement and will grant new opportunities to Singaporean and German exporters alike.
As a bilateral business and trade association, the Singaporean-German Chamber of Industry and Commerce (SGC) has been in support of this Free Trade Agreement since the start of its negotiation in 2009. The SGC has therefore provided input during public consultations, fostered constructive dialogues on the topic and advocated for a swift ratification and entry into force.
This publication seeks to showcase the impact of the EUSFTA on German and Singaporean
businesses and how this modern and comprehensive trade agreement can strengthen bilateral ties. To do so, the SGC has conducted the 2019 Trade and EUSFTA survey1 to obtain feedback from the German and Singaporean business community as well as conducted interviews with five companies. Key takeaways of the publication are:
▶ A majority of German and Singaporean companies are negatively impacted by global trade uncertainties.
▶ Key barriers to trade between Germany/the EU and Singapore are divergence of (i) standards and regulations (31%), (ii) marking, labeling and packaging requirements (27%) as well as (iii) tariffs (26%).
▶ 46% of respondents indicated that the EUSFTA will help significantly to overcome current barriers to trade, while 59% stated it would improve their export performance.
▶ While the EUSFTA eliminates tariffs and non-tariff barriers, liberalises service sectors and creates new procurement opportunities, companies must manage their expectation since some commitments will only phase-in after some years and/or can be conditionalised. For the latter, companies must meet the terms and conditions prior to being able to leverage on the agreement.
▶ Companies should spend some time to study the Agreement and, if necessary, develop an internal EUSFTA strategy.
We trust that you will find the following pages relevant and valuable for your business needs, and
we would like to thank Mr. Robin Hoenig for preparing this report.
Dr Claus Trenner Dr Tim Philippi
former President, SGC Executive Director, SGC