Singapore New Zealand Free Trade Agreement (FTA)

Course summary Singapore New Zealand Free Trade Agreement (FTA)

Singapore Free Trade Agreements (FTAs) - New Zealand - Free Trade Agreements (FTAs) and International Relations

The objectives of the New Zealand Singapore Free Trade Agreement (FTA) are:

a) to strengthen their bilateral relationship through the establishment of a closer economic partnership;

b) to liberalise bilateral trade in goods and services and to establish a framework conducive to bilateral investments;

c) to support the wider liberalisation process in APEC and in particular the efforts of all APEC economies to meet the Bogor goals of free and open trade and investment by 2010 at the latest for industrialised economies and 2020 at the latest for developing economies;

d) to support the World Trade Organisation (WTO) in its efforts to create a predictable, freer and more open global trading environment;

e) to improve the efficiency and competitiveness of their goods and services sectors and expand trade and investment between each other;

f) to establish a framework of transparent rules to govern trade and investment between them; and

g) to accord fair and equitable treatment and protection to bilateral investments.

The main benefits to businesses are as follows:

- Both countries will eliminate all tariffs. Most of Singapore’s top exports to New Zealand will be able to qualify for the preferential market access treatment. Exporters are permitted to transit, unload and reload their goods in Australia and still qualify for preferential treatment.

- Under the Mutual Recognition Agreement, electrical and electronic equipment tested in Singapore will no longer require a second testing when exported to New Zealand.

- Both countries have committed to liberalise many services sectors, including professional services, financial services and environmental services.

- There is also a commitment to a framework of investment rules to promote and protect bilateral investment.

- Singapore suppliers will enjoy equal and non-discriminatory access to all government tenders above estimated value of S$110,000.

Total two-way trade between Singapore and New Zealand continues to increase(NZ$2.8 billion in 2007). The balance of trade still stands strongly in Singapore's favour with imports from Singapore to New Zealand (amounting to NZ$1.914 billion in 2007). Over the same period, New Zealand's exports to Singapore totalled NZ$690 million. However, New Zealand exports have been trending strongly upwards (the year to June 2007 total was NZ$514 million), so improving the balance of trade.

Singapore is an important source of investment for New Zealand, with stock Foreign Direct Investment from Singapore in 2007 totalling NZ$1.636 billion.

Singapore New Zealand Free Trade Agreement (FTA)
 

NOTE: See also the Trans-Pacific Strategic Economic Partnership Agreement among Brunei Darussalam, Chile, New Zealand and Singapore.

Spanish: Negocios en Singapur Asia

 Educational level: Continuing education / Executive education programs.