India-Singapore Sign Protocol to Amend the Comprehensive Economic Cooperation Agreement (CECA) to Expand the Tariff Liberalization Package
The Government of India and Government of Singapore have signed a Protocol to amend the India-Singapore Comprehensive Economic Cooperation Agreement (CECA) to expand the tariff liberalization package within the Trade in Goods Chapter here today. To enhance bilateral trade and to strengthen economic relations in various fields, the Comprehensive Economic Cooperation Agreement (CECA) between India and Singapore was signed on 29th June, 2005 by the Prime Minister Dr. Manmohan Singh and H.E. Mr. Lee Hsien Loong, Prime Minister of Singapore and came into effect from 1-8-2005. The Bilateral trade has shown tremendous growth since then with India’s exports to Singapore during 2005-06 and 2006-07 at US$ 5.4 billion and US$ 6.02 billion registering a growth of 35.61% and 10.98% respectively and Singapore’s export to India during 2005-06 and 2006-07 at US$ 3.4 billion and US$ 5.5 billion registering a growth of 26.49% and 63.10% respectively. India had a positive trade balance of US$ 551 million against Singapore in 2006-07.
Singapore had recently made a request for tariff elimination/reduction for certain products. The Government of India has now decided to agree to eliminate/reduce tariff on 539 products (at 8-digit HS code) as an additional concession within the existing India-Singapore CECA. Of the 539 tariff lines, tariff elimination is to be achieved in 5 equal cuts between 15th January 2008 and 1st December 2011 for 307 items. These 307 items comprise mainly of articles of base metal, machinery and mechanical appliances, chemicals and textile and textile articles. For another 97 products, tariff elimination is to be achieved in 9 equal cuts between 15th January 2008 and 1st December 2015. These 97 items comprise mainly of machinery and mechanical appliances, plastic and rubber articles and textile and textile articles. For 135 products, tariff reduction to 5% is to be achieved in 9 equal cuts between 15thJanuary 2008 and 1st December 2015. These items comprise mainly of chemicals, plastic and rubber articles and machinery and mechanical appliances.
Under the existing Trade in Goods Agreement, about 83% value of India’s imports from Singapore are covered under products for which tariff is being eliminated or reduced. After the proposed additional tariff concessions, this coverage would go up to about 93%. It has also been decided to extend, under India-Singapore CECA, additional concessions that India may offer under ASEAN-India FTA in Goods in terms of product coverage, time-line, Rules of Origin, with appropriate amendments to India- Singapore CECA.
RJ/SN
(Release ID :34178)