EU, Singapore near trade deal
October 17, 2014
After finalizing talks on an EU-Singapore free-trade agreement, EU Trade Commissioner Karel De Gucht said in Brussels the deal - if signed after undergoing a string of legal checks - had the potential of being a gateway to the important region of Southeast Asia.
"It can help boost economic growth, investment and job creation in the EU," De Gucht added. "And it will help open the door for Europe to the ASEAN market with 600 million consumers."
The European Union is also negotiating free-trade deals with Malaysia, Thailand and Vietnam and ultimately hopes to sign a single such deal with the 10-country ASEAN (Association of Southeast Asian Nations).
Hidden traps?
As a final item on the agenda, the EU and Singapore agreed on a chapter of investment protection which would commit the two sides to ensure a fair regime for foreign investment.
The issue had been highly controversial in the EU recently because of a similar clause in a free-trade deal negotiated with the US.
Critics of the chapter had voiced fears that the regulations contained in the clause could be abused by corporations to block what they might interpret as undesirable regulation by EU and national authorities.
Singapore is the EU's fifth-largest trading partner in Asia. The bilateral exchange of goods reached 46.7 billion euros ($59.8 billion) last year.
hg/cjc (Reuters, AFP)