Apart from commercial concessions, Singapore companies and investors will have access to a market of 23 million people and will be able to participate in public tenders. Since Beijing insists that free trade agreements can only be concluded between sovereign states, Taiwan must conclude free trade agreements under another name, such as the economic cooperation agreement signed in August between New Zealand and the separate customs territory of Taiwan, Penghu, Kinmen and Matsu. Exports account for two-thirds of Taiwan`s GDP and, as China and Hong Kong account for about 40%, the Singapore agreement is expected to help Taiwan reduce its dependence on the Chinese market. “We will contact all members involved in the TPP and RCEP negotiations and conclude successive agreements with them,” Lin said. The agreement, which is a free trade agreement (FTA) that, up to its name, has a meaning that goes beyond its probably limited economic effects. It appears that mainland China will not oppose Taiwan`s efforts to conduct trade diplomacy with non-allied countries, at least as long as relations between the two countries continue to deepen. Singapore has close relations with the mainland and would not have reached the agreement if it had angered the Chinese authorities. The pact also suggests that Taiwan is willing to make concessions to secure free trade agreements. There was evidence that the negotiations, which began in May 2011, were stalled due to a protectionist mindset. Foreign Minister David Lin (永) said the agreement showed Taiwan`s commitment to liberalizing trade and investment to the international community. On 7 November, Taiwan and Singapore signed an economic partnership agreement that will reduce trade and investment barriers between the two countries. ASTEP, described by the government as a “high quality” and “quality” comprehensive trade agreement, contains 17 chapters that apply to market access conditions for trade in goods, cross-border trade in services, public procurement and e-commerce; trade rules issues: technical barriers to trade, rules of origin, foreign investment, competition policy, trade aid, customs procedures, health and plant health measures and transparency; cooperation on intellectual property protection; dispute resolution rules.
Taiwan yesterday signed a major free trade agreement with Singapore – the first of its kind with a Southeast Asian country – in a move that the government says would strengthen the country`s efforts to continue its economic engagement with its trading partners bilaterally and multilaterally. As part of the agreement, Singapore will immediately remove tariffs on all products imported from Taiwan. Satish Bakhda, Head of Operations at Rikvin, commented on ASTEP`s impact on Singapore businesses such as: “This agreement will allow Taiwanese companies not only to access singapore`s small consumers, but also to enable Singapore`s service providers to complement the Taiwanese industry. This pact is a win-win situation for both, but it is particularly important for Taiwan, which until now had been diplomatically timid. This agreement will allow Taiwanese businesses not only to access Singapore`s small consumers, but also to enable Singapore`s service providers to complement Taiwan`s industry.
