Free Trade Agreement Between Singapore And Malaysia

Trade liberalization in the region, through the removal of intra-regional tariffs and non-tariff barriers, has contributed to making ASEAN`s manufacturing sectors more efficient and competitive in the global market. As a result, consumers are able to source from more efficient ASEAN producers, creating robust intra-ASEAN trade. From the perspective of the Europe-Singapore trade corridor, total merchandise trade between Singapore and the EU has increased by 30% since 2006. The ASEAN Economic Community (ACS) was first discussed at the Bali Summit in October 2003, when ASEAN Heads of State and Government declared that the ACS should be the goal of regional economic integration by 2020. On the 12th, however, the ASEAN Summit in January 2007 reaffirmed their firm commitment to accelerate the establishment of the ACS by 2015, with a view to transforming ASEAN into a region with free movement of goods, services, investment, skilled workers and capital. ensure consistency of the provisions currently set out in the various agreements, documents and decisions of the AFTA Council and the ASEAN Economic Ministers` Meeting (MEA); and best practices to facilitate trade, which are applied by each Member State; and with effect from 1 January 2010, Malaysia is a Comprehensive Free Trade Area with five other ASEAN member countries (Brunei Darussalam, Indonesia, the Philippines, Singapore and Thailand). These countries have abolished import duties on 99% of the products on the entry list (with the exception of products on the lists of sensitive and highly sensitive products). Ajay Sharma, Director of Global Trade finance and receivables at HSBC APAC, said ASEAN`s unique concept of cumulation allows not only Singapore, but also ASEAN, to reap the benefits of the EUSFTA. Trade facilitation is one of the main policy measures supporting the free movement of goods with a view to creating an internal market and a production base when Heads of State and Government agreed on the first FAC in 2015 in 2007. Under the AEC-Blueprints 2009-2015, the Trade Facilities targeted simple, harmonized and standardized trade and customs, processes and procedures that will improve export competitiveness and facilitate ASEAN`s integration into a domestic market for goods, services and investment, as well as a single production base.

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