SBF welcomes yet another piece of good news for the Singapore business community – the official ratification of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
This historic high-quality trade deal aims to increase trade among 11 CPTPP parties (i.e. Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam) through the substantial elimination of tariffs and non-tariff barriers for goods, improved access for service suppliers, greater facilitation of investments, and improved access to government procurement contracts.
The CPTPP, therefore, provides opportunities for companies in the region to have greater and easier access to a market of 500 million people for both goods and services.
The broad-ranging benefits for Singapore companies include better access to opportunities in CPTPP markets and producer of goods such as food, textiles and apparel can tap preferential tariffs when exporting to a CPTPP nation. As a result of the agreement, Singapore companies will also be able to bid for government tenders in countries that were previously closed to foreign bidders such as Malaysia, Mexico and Vietnam.
Currently, the CPTPP has been ratified by Australia, Canada, Japan, Mexico, New Zealand and Singapore, and will enter into force for these countries on 30 December 2018.
Said Mr Ho Meng Kit, CEO of SBF, “The CPTPP ratification is a significant development in the international trading system. I hope that the five remaining parties – Brunei Darussalam, Chile, Malaysia, Peru and Vietnam – will soon be able to ratify and be ready to implement the CPTPP from 30 December 2018. I am also calling on other countries to join and be part of the extensive CPTPP network.
Mr Ho added, “SBF is now reaching out to relevant partners – the Government and business chambers in Singapore – on raising awareness on the benefits of the CPTPP to Singapore companies. It is important to help them understand how these benefits can be unlocked and translated into tangible benefits for their businesses.”
“The 5-year historical trade data shows that Singapore’s exports of goods to CPTPP countries account for more than 20% of our country’s total product exports to the world. I would personally like to see how existing Singapore exporters can benefit from the CPTPP implementation. For companies looking to venture into CPTPP markets, we hope to help them leverage on CPTPP provisions to gain easier market entry.”