logo logo

Singapore, South Korea FTA takes effect Thursday

Channel News Asia, 01 March 2006

Singapore, South Korea FTA takes effect Thursday

SINGAPORE : Three-quarters of Singapore’s domestic exports to South Korea will enjoy tariff elimination from Thursday.

A further 14 percent will get tariff-free access over the next 10 years.

In return, 100 percent of South Korea’s exports to Singapore will be duty-free — all remaining tariffs will be removed.

This has been made possible with the Korea-Singapore Free Trade Agreement, which comes into force on Thursday.

The services industries are among those likely to benefit most from the pact.

Singapore’s education, logistics and environmental services, for example, will be able to easily access the Korean market, just as service providers in Korea will get access to Singapore’s construction, logistics and professional services markets.

Investors and investments from both countries will be further protected by comprehensive commitments in the trade pact.

Beyond liberalising trade and investment, the agreement also contains a host of benefits resulting from cooperation in wide-ranging areas such as broadcasting, environment, film and games, human resource development and intellectual property rights.

The Trade and Industry Ministry says such cooperation will enable both countries to develop closer economic ties beyond conventional trade and investment liberalisation.

The FTA was signed by Trade and Industry Minister Lim Hng Kiang and South Korean Minister for Foreign Affairs and Trade Ban Ki Moon in August last year.

Both countries since have completed their legal and administrative procedures to implement the agreement. - CNA /ct

 source: Channel News Asia