The Strategic Advantage
Singapore’s Free Trade Agreements (FTAs) create specific economic benefits that set it apart from other Asian business centers. The agreements affect 27 trading partners, including the world’s largest economies and fastest-growing markets, giving Singapore-based companies preferential access across Asia, Europe, and the Americas.
The GCC-Singapore Free Trade Agreement (GSFTA) shows these benefits: trade between Singapore and Gulf nations rose to US$43 billion in just five years after implementation.
This pattern repeats across other agreements. Since the China-Singapore Free Trade Agreement (CSFTA) took effect, China became Singapore’s top merchandise trading partner, accounting for 13.9% of Singapore’s total merchandise trade in 2023.
For international businesses, these agreements offer three key financial benefits:
- Direct cost reduction through eliminated tariffs, often reaching 95-99% of product categories
- Faster market entry through simplified customs procedures and documentation
- Protected investments through legal frameworks that secure business rights
The agreements also address modern business needs. New digital economy partnerships with the UK, EU, and other nations create frameworks for cross-border data flows, electronic payments, and technology development. These rules give Singapore-based tech companies and digital businesses clear paths to international growth.
Singapore’s Bilateral Free Trade Agreements
1. China-Singapore FTA (CSFTA)
- JAN 2009: CSFTA entered into force
- NOV 2018: Upgraded CSFTA signed
- OCT 2019: Upgraded CSFTA entered into force
- DEC 2023: CSFTA Further Upgrade Protocol signed (pending entry into force)
For Singapore-based companies eyeing the Chinese market, the CSFTA eliminates tariffs on 95% of exports to China. The agreement gives investors unprecedented access to over 20 of China’s services sectors – from construction to technical services – without equity limits. A 2023 upgrade added new rules in telecommunications and investment protection, making business operations more predictable and profitable.
2. India-Singapore Comprehensive Economic Cooperation Agreement (CECA)
- AUG 2005: CECA entered into force
CECA doubles bilateral trade through tariff reductions or eliminations on electronics, machinery, and pharmaceuticals. Singapore banks gain expanded access to India’s financial sector. The agreement protects intellectual property rights and offers dispute resolution mechanisms for greater investment security.
3. Japan-Singapore Economic Partnership Agreement (JSEPA)
- NOV 2002: JSEPA entered into force
- SEP 2007: Revised JSEPA entered into force
This agreement cuts tariffs on 92% of Singapore exports to Japan. Companies benefit from reduced testing requirements for electronics and telecommunications equipment. Singapore-based brokers can access Japanese clients in marine, aviation, and transit insurance
4. Korea-Singapore FTA (KSFTA)
- MAR 2006: KSFTA entered into force
The KSFTA eliminates tariffs on 91.6% of Singapore exports. Singapore companies gain non-discriminatory treatment in Korean government procurement. The agreement includes mutual recognition for electronics testing, reducing time and costs for market entry.
5. Panama-Singapore FTA (PSFTA)
- JUL 2006: PSFTA entered into force
Singapore exporters enjoy zero tariffs on 98% of goods entering Panama. The agreement creates a single government procurement market, giving Singapore companies equal access to Panama’s public contracts. Companies benefit from simplified customs procedures through self-certification of origin.
6. Peru-Singapore FTA (PeSFTA)
- AUG 2009: PeSFTA entered into force
More than 87% of Singapore’s exports to Peru receive reduced tariffs. Singapore service providers gain access to insurance, professional, and transport sectors. The agreement guarantees non-discriminatory treatment for digital products and keeps electronic transmissions duty-free.
7. Singapore-Australia FTA (SAFTA)
- JUL 2003: SAFTA entered into force
- JUN 2015: SAFTA upgraded under CSP agreement
- OCT 2016: Upgraded SAFTA signed
- DEC 2017: Upgraded SAFTA entered into force
All Singapore exports to Australia are free of tariffs. The agreement reduces regulatory barriers for food products, wine, cosmetics, and medical devices. Singapore investors benefit from higher thresholds for foreign investment screening by Australia’s review board.
8. Singapore-Costa Rica FTA (SCRFTA)
- JUL 2013: SCRFTA entered into force
Over 95% of Singapore exports enter Costa Rica duty-free. The agreement opens opportunities in government procurement for port and airport projects. Singapore investors receive protection against discriminatory treatment and expropriation.
9. Singapore-Jordan FTA (SJFTA)
- AUG 2005: SJFTA entered into force
This agreement eliminates tariffs on 97.5% of Singapore exports. Products qualify for preferential treatment with just a…ommunity (AEC)
- 2010: ASEAN Trade in Goods Agreement (ATIGA) entered into force
- 2025: Upgrade to be signed.
Eliminates 98.64% of all tariffs in the region. Certified Exporters can self-certify origin of exports through ASEAN-wide Self-Certification Scheme. Electronic Certificates of Origin now mandatory through ASEAN Single Window.
8. Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
- DEC 2018: CPTPP entered into force
- JUL 2023: United Kingdom accession protocol signed
Eliminates tariffs on 99% of goods across CPTPP members. Enables regional cumulation of materials from CPTPP countries. Opens government procurement opportunities in IT, construction, and consultancy sectors.
9. EFTA-Singapore Free Trade Agreement (ESFTA)
- JUN 2002: Agreement signed
- JAN 2003: Entered into force
The ESFTA removes tariffs on 99.8% of Singapore exports to Iceland, Liechtenstein, Norway, and Switzerland. Exporters enjoy immediate tariff benefits through self-declaration of product origin, with no additional application needed. The agreement extends beyond basic trade to include rules of origin, trade remedies, sanitary measures, and technical barriers.
10. GCC-Singapore Free Trade Agreement (GSFTA)
- SEP 2013: Entered into force
This agreement opens duty-free access for 98.6% of Singapore exports to Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and UAE. Companies benefit from predictable advance rulings on tariff qualifications. Singapore service providers gain access to key sectors including legal, construction, education, and maritime transport
11. Regional Comprehensive Economic Partnership (RCEP)
- NOV 2020: Agreement signed
- JAN 2022: RCEP entered into force for 10 parties:
- Australia, Brunei, Cambodia, China, Japan, Laos, New Zealand, Singapore, Thailand and Vietnam
- FEB 2022: Entered into force for South Korea
- MAR 2022: Entered into force for Malaysia
- JAN 2023: Entered into force for Indonesia
- JUN 2023: Entered into force for Philippines
Eliminates tariffs on 92% of goods traded amongst RCEP parties. Streamlines rules of origin with regional cumulation benefits. Creates a more conducive digital trade environment with enhanced e-commerce
