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Minister's Speech at the Signing Ceremony of the Aviation Horizontal Agreement with EC
Posted on Friday, June 09, 2006 - 09:00 AM

Speech by Mrs Lim Hwee Hua, Minister Of State For Finance And Transport, at the signing ceremony of the Agreement between the European Community and the Republic Of Singapore on certain aspects of air services, 9 June 2006, 9.15 am at EU Conference Centre, Luxembourg.

Your Excellency, Mr Hubert Gorbach, Vice-Chancellor and Federal Minister for Transport, Innovation and Technology, President-in-office of the Council of the EU

Mr Jacques Barrot, Vice-President of the EU Council and EU Transport Commissioner

Distinguished guests, Ladies and gentlemen,

A very good morning to all of you.

2. I am proud to be here this morning to sign this landmark aviation agreement between Singapore and the European Union (EU). As the first of its kind between the EU and an Asian country, today’s signing bears testimony to the EU’s increasing engagement with Singapore and the Southeast Asian region. It also signifies our shared market-driven approach to pursue the goal of achieving a more liberal and open skies in the global aviation arena.

Singapore – A gateway to a Growing Asia

3. By allowing all European airlines to fly between any EU Member State and Singapore, the Horizontal Agreement signed today opens up a new dimension of growth possibilities for European airlines, not only in the Singapore market, but for the rest of ASEAN as well. With a combined GDP of more than €600 billion and a population of over 500 million people, ASEAN represents a market of tremendous trade and investment opportunities. Singapore, as a gateway to ASEAN with over 830 weekly services to some 38 cities in the region, is well-placed to help the EU tap into this vibrant market.

HA is the first step towards an EC-SIN OAA

4. Despite the immense growth potential that ASEAN represents, the promise of economic growth will not be realized unless governments work together to institute a framework that would facilitate economic growth, trade and investments. The EC’s vision of concluding Open Aviation Area agreements (OAA) with like-minded countries would be instrumental in this respect.

5. It is a well-known fact that a liberal aviation policy plays a crucial role in stimulating economic growth, and in facilitating the growth of trade, tourism, investment and people to people links. Singapore’s liberal aviation policy has sustained a steady traffic growth with EU member states since the SARS crisis in 2003. Passenger traffic recovered strongly in 2004, registering a healthy year-on-year growth of 9.1% for 2004 and 3.3% in 2005. Freight traffic grew by 2.4% in 2005 and has grown by 5.8% in the first four months of this year. This has supported the growth in bilateral trade, which amounted to almost €42 billion last year, representing a growth of 4.6% from 2004.

6. Singapore is committed to pursuing a win-win civil aviation relationship with the EU, and today’s agreement affirms that commitment. The EU has always been at the forefront of air services liberalisation, having successfully integrated its Member States into “One European Sky” as early as 1997. In order to realize the Commission’s goal of achieving a fully liberalised international aviation framework, it would be opportune for the EU to take the next step to conclude an OAA agreement with like-minded partners such as Singapore. With ASEAN members progressing towards a removal of restrictions on direct passenger flights between capital cities by Dec 2008, an OAA with Singapore would also strategically serve as a pathfinder and template for the EU’s engagement of other Asian countries.

7. Let me conclude by thanking Mr Gorbach, Mr Barrot, and the European Commission for hosting today’s ceremony. I am confident that the bilateral relationship between Singapore and the EU will grow from strength-to-strength, and that this agreement will be a bridge to promote an Open Aviation Area between Singapore and the European Union in time to come.

8. Thank you.

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