The Straits Times (01/10/2019) - Lower tariffs, faster Customs clearance, ease of market entry when deal is in force

Singapore businesses will gain from a new free trade agreement with the Eurasian Economic Union (EAEU), through benefits such as tariff reductions and faster Customs clearance, Senior Minister of State for Trade and Industry Koh Poh Koon said yesterday.

In an interview in Yerevan, the capital of Armenia, he said the EAEU offers "lots of opportunities and untapped potential for Singapore businesses to venture into".

The EAEU, which comprises Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia, is a "sizeable market", said Dr Koh, with more than 180 million people and a total gross domestic product of US$1.9 trillion (S$2.6 trillion).

Today, Singapore and the EAEU will sign several components of the EAEU-Singapore Free Trade Agreement (FTA) in a ceremony that will be witnessed by the union's leaders and Prime Minister Lee Hsien Loong, who is on a four-day official visit to Armenia.

PM Lee arrived in the country last Saturday and, the following day, met Armenia's Prime Minister Nikol Pashinyan and President Armen Sarkissian.

Dr Koh, who was involved in the FTA negotiations, told reporters that when the trade deal is in force, EAEU member states will reduce tariffs on 90 per cent of goods exported by Singapore to their markets. Over a 10-year period, this will increase to 97 per cent.

Goods that will benefit include chemical products, precision instruments, machinery equipment, prepared foodstuffs, mineral oils, oil distillates and pharmaceutical products, he said.

The FTA's terms also provide for goods to be cleared at Customs within 24 hours so that they can reach the market faster, he said, adding that express deliveries can be cleared in four hours.

"So, for our companies shipping products to this part of the world - with this FTA - it will ensure that there is no hold-up of their goods at Customs," said Dr Koh.

Singapore food processors and manufacturers will also benefit from the ease of entry into the EAEU markets, with measures in the FTA to enhance transparency on sanitary and phytosanitary regulations, which pertain to the safety standards for food products, and with an enhanced Customs clearance process, he added.

Meanwhile, PM Lee met Supreme Patriarch and Catholicos Karekin II, the supreme head of Armenian Christians, yesterday.

The religious leader thanked the Prime Minister for Singapore's strong support for the Armenian community in Singapore over the years, and for designating the Armenian Church in Singapore as a national monument in 1973.

PM Lee updated the religious leader about the many contributions made by the Armenian community in Singapore since the country's founding, and the two leaders spoke about the importance of inter-religious dialogue to foster religious harmony.

PM Lee later met Armenian National Assembly chairman Ararat Mirzoyan, and both of them expressed interest in expanding relations, including strengthening parliamentary ties.

They welcomed the upcoming signing of the EAEU-Singapore FTA and spoke of the potential to increase cooperation in tourism and other areas.

Read more at https://www.straitstimes.com/politics/trade-deal-with-eurasian-union-set-to-benefit-spore-businesses