Germany - Singapore Free Trade Agreement Creates Economic Bridge Between the EU and Singapore
New Free Trade Agreement Between the EU and Singapore Leads to Improvement in International RelationsSeptember 15th, 2022
The European Union (EU) and Singapore have signed a Free Trade Agreement (FTA) in 2019, which has recently been ratified.
This FTA has been ratified by member states, and most importantly Germany. Germany is one of Singapore’s biggest business partners, and the biggest partners from the Asian trade organisation Association of Southeast Asian Nations (ASEAN). This is a positive development for not only Singapore, but also the ASEAN as it creates a connection to European partners, both in trade of goods and services.
In 2018, bilateral trade in goods between the EU and Singapore exceeded $114 billion, and the EU was Singapore’s third largest trading partner in goods, and the largest in foreign direct investment (FDI) in 2017. Singapore was the largest trading partner from ASEAN for the EU, as well as the largest FDI investor from the association.
Singapore also has a bilateral cultural agreement with Germany. This entails that Singapore has a branch of the German Goethe-Institut, whose purpose is to teach individuals German through courses, as well as encouraging knowledge about German culture. There is also a German Academic Exchange Service Information Point, where people of Germany can receive funding when studying abroad. Singapore also houses the first overseas campus of a German school, the Technical University of Munich which is located in the south of the island. Fraunhofer Singapore, the first Asian affiliate of Fraunhofer-Gesellschaft has recently opened in Singapore as well. The German European School Singapore, the largest German school abroad in Asia has existed in the country for over fifty years. All of the schools are creating a good opportunity for German and European students to go abroad and experience a different culture.
From these agreements and collaborations, Singapore and Germany will experience increased understanding and opportunities to work on a higher level. Singapore will, for example, have more opportunities to participate in government procurement projects in the EU, and benefit from enhanced Intellectual Property Rights protection, amongst others.