INDIA – SINGAPORE Trade Agreement

Submitted By:
D. SRAVAN
1804305009
2nd Semester
MBA (ITLM)

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INTRODUCTION:

 On June 29, 2005; India and Singapore signed Comprehensive Economic Co-operation Agreement (CECA) and this
came into effect from August 1, 2005.

 This agreement paved a way for an integrated package governing trade in goods and services, on investments, mutual
recognition in services, science and technology, education, e-commerce and media.

 Tariff rates were reduced for enhancement of trade between the two parties.

 Strict Rules of Origin (ROO) were prescribed.

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OBJECTIVES:

To-

 Strengthen and enhance the economic, trade and investment co-operation between the parties.

 Liberalize and promote trade in goods and services.

 Establish a transparent, predictable and facilitative investment regime.

 Improve the efficiency and competitiveness of their manufacturing and services sectors and to expand trade and investment
between the parties, including joint exploitation of commercial and economic opportunities in non-parties.

 Explore new areas of economic co-operation and develop appropriate measures for closer economic co-operation between the
parties.

 Facilitate and enhance regional economic co-operation and integration.

 Build upon their commitments at the World Trade Organization.

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The key features of the CECA were:

 Enhancement to avoidance of double taxation agreement.

 Trade in good.

 Mutual recognition agreements.

 Trade in services.

 Movement of citizens.

 Education.

 Media.

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 What India will get What Singapore will get

• Business services. • Business services.

• Educational services. • Construction services.

• Transportation services. • Financial services.

• Financial services. • Telecommunication services.

• Movement of natural persons. • Tourism and travel.

• Transportation services.

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DISADVANTAGES:

 Risk of entry of 3rd country nations products into India.

 Indian firms get affected by uneven playing field.

ADD ON’S:

 Singapore is the 8th largest source of investment in India and the largest amongst the ASEAN member nations.

 Singapore was also India’s 9th biggest trading partner as on 2000-2010.

 India’s main exports to Singapore includes petroleum, gemstones, jewelry and machinery.

 The imports from Singapore include electronic goods, organic chemicals and metals.

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CONCLUSION:

CECA boosted the FDI and FII flows from Singapore to India. This agreement was taken as a prominent step which acts as
a bridge for India to enter into the ASEAN.

CECA is acclaimed as a win-win situation for both the nations.

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References:

 www.indiantradeportal.in
 www.hcisingapore.gov.in
 eresources.nlb.gov.sg
 Francis Cherunilam text book.

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THANK YOU

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