What's New

Singapore and Mercosur conclude FTA negotiations
Kind: ICD What's New  Organization: Department of International Cooperation  Publish Date: 2022-07-27 14:02
During the Mercosur Summit 2022 in Paraguay, Singaporean Trade and Industry Minister Gan Kim Yong and Mercosur ministers jointly announced via videoconference on July 20 that they had substantively completed negotiations on the planned Mercosur-Singapore Free Trade Agreement (MCSFTA).

The two sides started the first round of negotiations in April 2019.

The comprehensive agreement includes commitments by Singapore and Mercosur to provide greater access to each other's markets through lower tariff rates on products traded, enhanced market access for services that companies provide, and opportunities for firms to access government procurement projects. Singapore's oil and gas, agricultural, digital, manufacturing, hospitality, logistics, and infrastructure industries will benefit from simplified trade procedures, fair competition and investor protection. MCSFTA will provide greater convenience in bilateral investment, intellectual property and innovation. In addition to direct economic benefits, the MCSFTA can facilitate institutional linkages and capacity building of both sides' institutions.

Minister Gan Kim Yong said that MCSFTA is built on the common interests of Singapore and Mercosur to have more connections and grow together. It marks Singapore's firm commitment to deepening trade and investment ties with Latin American partners. As the first trade agreement between Singapore and Mercosur member states, MCSFTA will ensure market access and bring more trade and investment opportunities for Singaporean enterprises. He added that we look forward to the signing and ratification of the FTA to bring it into force as soon as possible.

Mercosur is a Latin American trade group composed of Argentina, Brazil, Paraguay and Uruguay. It has a total population of more than 295 million people and a combined gross domestic product of US$2.2 trillion. Singapore's trade with Mercosur accounts for nearly half of its total trade with Latin America. Its goods trade with Mercosur countries amounted to 7.9 billion Singapore dollars (US$5.67 billion) last year, while trade in services reached 3 billion Singapore dollars.

According to Singapore's Ministry of Trade and Industry (MTI), a total of 90 companies from Mercosur have entered Singapore. At the end of 2021, Singapore's accumulated foreign direct investment in Mercosur countries had reached 1.66 billion Singapore dollars. Nearly 70 Singapore companies have entered the Mercosur market, including Ascott, Changi Airport Investment Corporation (CAI), Sea Group, Olam International, and Wilmar International.

Sources: Economic Division, Taipei Representative Office in the Republic of Singapore; Associated Press

Update: 2020-04-23
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