Continuity Trade Agreement with Singapore has been saved
Continuity Trade Agreement with Singapore
Trade and market access
Brexit pulse alert: respond to the business impacts of Brexit
10 December, 2020
The UK government has agreed a continuity trade agreement with Singapore to ensure businesses in both countries can continue to trade on largely the same terms as present.
Top Brexit impacts
The agreement provides confidence to businesses that trade between the UK and Singapore will continue on largely the same terms as at present.
The agreement covers over £17 billion of bilateral trade in both goods and services, including tariff elimination on the same timeline as the EU-Singapore FTA. The two countries have stated it will also see the “reduction of non-tariff barriers in key sectors such as electronics, motor vehicles and vehicle parts, pharmaceutical products and medical devices, and renewable energy generation”.
The UK government has welcomed commitments from Singapore in finance and banking, commenting: “Singapore has also agreed to consider an increase in the limits imposed on e-wallet payments, which affect UK firms operating in Singapore, as well as to discuss opportunities for UK firms to apply to become Digital Wholesale Banks in Singapore. This is in addition to additional customer services points permitted for UK retail banks already operating in Singapore, as part of this agreement”.
Alongside the agreement, the UK and Singapore have announced their intention to negotiate a separate Digital Economy Agreement, to include provisions in areas such as emerging technology and cyber security.
Actions for business
Businesses trading within the UK-Singapore corridor will now be able to plan for the future with greater certainty. Once published, firms will have a short period of time to examine the legal text of the agreement, which will come into effect on 1 January 2021 after the transition period.
To discuss specific support with your Brexit preparations based on this latest development contact: Deloitte Brexit Insight