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Singapore, South Korea urged to kick off early FTA talks

AFP - Singapore

Singapore and South Korea moved a step closer to a free trade agreement (FTA) here with the release of a joint report which urged an early start to negotiations on the deal. The joint study group (JSG), which was set up six months ago, ended its work with a report saying a South Korea-Singapore FTA (KSFTA) would be beneficial for both nations, a statement issued by their trade ministries said.

The JSG suggested that both countries “enter into formal negotiations at an early date” and aim to conclude a pact “within a reasonably short period of time.”

“After six months of careful and active consultations, the JSG concluded that the KSFTA would bring about mutual benefits to both countries by providing greater and newer opportunities, and larger (economies) of scale for Korean and Singapore businesses,” the statement said. An accord will help develop both countries’ competitiveness, allow them to exploit emerging opportunities in the region and the global market, and help further promote trade liberalisation in the area. Singapore will become South Korea’s gateway to Southeast Asia, while South Korea will be a base for Singapore’s foray into Northeast Asia. The study group recommended that the proposed FTA should cover freeing up trade in goods and services, investment, government procurement and intellectual property rights. It should also cover cooperation in financial services, information and communication technology, human resources development, trade and investment promotion, as well as the setting up of a dispute settlement mechanism.