Singapore Ambassador Hirubalan described the signing of a Free Trade Agreement between his country and the Gulf Cooperation Council (GCC) in Doha Monday as the dawning of a new era. “The signing of the Free Trade Agreement between the Gulf Cooperation Council and Singapore symbolizes a new era in relations between Singapore and the GCC member states. This agreement is a significant milestone that will lead to further enhancement and strengthening of the already close and friendly ties we now enjoy,” the envoy said in a statement issued from the Singapore Embassy here. Singapore Prime Minister Lee Hsien Loong signed in Doha Monday the free trade agreement with GCC members, a grouping comprised of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. The GSFTA, as the agreement is called, is a milestone in strengthening ties between the GCC countries and Singapore, because it is the first Free Trade Agreement (FTA) signed by the GCC and the second FTA that Singapore has signed in the Middle East, the statement said. The GCC is Singapore's seventh largest trading partner with the volume of bilateral trade reaching a record high of S$42.4 billion in 2007. This is an increase of 127 percent since 2002. Singapore's cumulative investments in the GCC totaled $357 million in 2006. The GSFTA is a comprehensive agreement that encompasses trade in goods, services, government procurement and other aspects. The cooperation chapter as mentioned in the agreement will also encourage and facilitate bilateral cooperation in several areas, including recognition of the Halal certification of Singapore's Majlis Ugama Islam Singapura (MUIS). The GSFTA process also commits each GCC country and Singapore to complete negotiations for bilateral Investment Guarantee Agreements (IGAs). As a key institutional framework that will strategically link the Gulf region and Singapore, the GSFTA will also help to promote and facilitate the greater flow of goods, services, investment and people between the two economies. The GSFTA includes a number of key features such as general provisions, trade in goods, rules of origin, customs procedures, trade in services, government procurement, electronic commerce, cooperation, dispute settlement, and final provisions, Singapore will grant zero-tariff treatment on all GCC imports when the agreement comes into effect. Under the GSFTA, the customs authorities in the GCC and Singapore will provide an advance ruling on the eligibility of originating goods for preferential tariffs and tariff classification.
