China, Singapore sign free-trade pact
CHINA: China signed a free-trade agreement with Singapore on
Thursday, its seventh such pact widely seen as aimed at building
political as well as commercial ties with other countries.
Chinese Premier Wen Jiabao and Singaporean Prime Minister Lee Hsien
Loong witnessed the signing ceremony in Beijing, with Singapore hailing
the deal as a an economic boon for the tiny Southeast Asian city-state.
“China is one of the largest and fastest growing markets in the world,”
the Singaporean government said in a statement.
“The agreement will enhance Singapore companies’ access to the vast
Chinese market and further boost our excellent bilateral trade and
investment relations.”
Singapore’s trade with China climbed to a record high of 91.6 billion
Singapore dollars (62 billion US) last year and Thursday’s agreement,
due to come into force at the start of 2009, was sure to see that rise
further. China is already Singapore’s third largest trading partner and
biggest investment destination. Singapore is China’s eighth-largest
trading partner.
Under the agreement, Singapore will abolish tariffs on all products
imported from China from the beginning of 2009, the Chinese commerce
ministry said in a statement. In return, China will reduce the tariff to
zero on 97.1 percent of goods imported from Singapore by January 1,
2012, it said.
The Singaporean government said all goods from the city-state, except
for about 260 products, would enjoy tariff-free access to China by 2010.
These make up about 95 percent of Singapore’s exports to China, with
petrochemicals, processed foods and electrical products among the key
items.
Singapore also pointed out the agreement sought to open up various
services sectors beyond World Trade Organisation commitments. “The
sectors for which Singapore gets preferential access include business
services and hospital services,” the Singaporean government said.
BEIJING, Thursday, AFP
|