WWLegal.com :: Signing of the Korea-Singapore Free Trade Agreement

Signing of the Korea-Singapore Free Trade Agreement
Posted on Thursday, August 04, 2005 - 12:00 AM

The Minister for Foreign Affairs and Trade of the Republic of Korea (ROK), Ban Ki-Moon and Minister for Trade and Industry of Singapore, Lim Hng Kiang today signed the Korea-Singapore Free Trade Agreement (KSFTA). The KSFTA is Korea?s first FTA with an Asian country.

The KSFTA was substantively concluded on 28 Nov 04 after 7 rounds of negotiation, and encompasses trade in goods, services, investment, customs procedures, mutual recognition agreements, intellectual property rights, competition policy, government procurement and cooperation in a wide range of areas.

The KSFTA will bring about economic and strategic benefits to both the ROK and Singapore and further enhance the close relationship between the two countries.

Under the agreement, almost 75% of Singapore's domestic exports to the ROK, which amount to over S$3 billion, will enjoy immediate tariff elimination. Companies in Singapore will enjoy tariff concessions on consumer electronics, precision engineering, biomedical sciences, chemicals and agricultural products. Singapore?s service industries will also benefit from enhanced access to the ROK services market in areas such as education, logistics and environmental services.

At the same time, all imports from the ROK will enter Singapore tariff-free upon the entry into force of the KSFTA. Service providers in the ROK will also gain access into Singapore?s construction, logistics and professional services markets.

The KSFTA is scheduled to undergo ratification by the ROK National Assembly and will come into effect by end 2005.

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