S’pore-Turkey free trade deal to come into force on Oct 1

SINGAPORE — The Republic and Turkey have ratified their bilateral free trade agreement, helping more Singapore companies to leverage on Turkey’s location as a springboard to the larger regional markets in Europe, Central Asia, the Middle East and Africa.

The Turkey-Singapore Free Trade Agreement (TRSFTA), signed in November 2015, will come into force on Oct 1, the Ministry of Trade and Industry (MTI) said yesterday.

Negotiations on the TRSFTA were launched by Prime Minister Lee Hsien Loong and Turkey’s then-Prime Minister and current President Recep Tayyip Erdogan in January 2014 and concluded in October 2015.

The ratification of the agreement builds upon the strategic partnership signed between Prime Minister Lee and Turkey’s Prime Minister Ahmet Davutoglu in October 2014.

Minister for Trade and Industry (Industry) S Iswaran said: “Singapore and Turkey’s bilateral ties have reached a new milestone with the ratification of the Turkey-Singapore FTA. It will create more business and investment opportunities for companies from both countries.

“Singapore and Turkey are strategically located in Asia and Europe, respectively, and can serve as gateways to larger regional markets.”

Speaking at the fifth Turkey-Singapore Business Forum, with Turkish PM Binali Yildirim in attendance, Mr Iswaran added: “With the changing global economic landscape and shifts in value chains, I encourage both Singapore and Turkish businesses to look beyond your traditional markets for new opportunities. Singapore and Turkey each combine Eastern and Western traditions in our unique ways.

“Singapore companies have always looked beyond our domestic market to find new sources of growth. With greater economic connectivity, it is important that our companies continue to seek out new markets and partnerships, to grow their top line and sharpen their competitiveness.”

The TRSFTA will reduce barriers to trade and investment between Turkey and Singapore, enhance access to services sectors and government procurement markets, as well as promote greater connectivity between businesses and people.

Tariffs for Singapore’s exports to Turkey on 80 per cent of all tariff lines will be eliminated immediately once the TRSFTA enters into force, the MTI said, adding that this will increase to more than 95 per cent over a period of 10 years.

Since 2007, Singapore’s trade in goods with Turkey has consistently surpassed the S$1 billion mark.

Last year, total bilateral trade in goods between Turkey and Singapore amounted to S$1.4 billion, the MTI said.

In 2015, total bilateral trade in services totalled S$500 million.