Singapore, Chinese Taipei ink economic cooperation agreement

SINGAPORE — The Republic today (Nov 7) signed an economic cooperation agreement with Chinese Taipei which would ease trade deals between the two countries.

The agreement was signed by Singapore’s Trade Representative in Taipei Calvin Eu, and the Taipei representative in Singapore, Mr Hsieh Fadah.

Negotiations for the agreement, known as the Agreement between Singapore and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu on Economic Partnership or (ASTEP), took around two years to complete.

The ASTEP covers areas such as trade in goods, trade in services, investment, dispute settlement, e-commerce, government procurement and customs procedures.

The is Chinese Taipei’s first agreement with one of its top 10 trading partners. Singapore is Chinese Taipei’s fifth largest trading partner, and it is Singapore’s eighth largest trading partner.

Total trade between Singapore and Chinese Taipei stood at S$49.7 billion in 2012.

“With the resources we mobilise in concluding ASTEP, it will enable us to rebuild our capability to expedite our economic integration with the region,” said Mr Hsieh.

When the agreement enters into force, it will eliminate tariffs for 97 per cent of Singapore’s exports to Chinese Taipei, and eventually allow all exports to enter tariff-free.

Meanwhile, all goods originating from Chinese Taipei will enjoy elimination of tariffs once the agreement is in place.

“As we celebrate this milestone and the long-standing friendship between Singapore and Chinese Taipei, our work is not completely done. We look forward to the early ratification of the ASTEP by Chinese Taipei, so that our people can enjoy its multi-faceted benefits and opportunities,” said Mr Eu.

The agreement needs to be ratified by lawmakers in Chinese Taipei before it enters into force. Its free trade pact with New Zealand, inked this July, took about seven months to be ratified. CHANNEL NEWSASIA