YEREVAN, ARMENIA - Singapore businesses will gain from a new free trade agreement with the Eurasian Economic Union (EAEU), through such benefits as tariff reductions and faster customs clearance, said Senior Minister of State for Trade and Industry Koh Poh Koon on Monday (Sept30).
In an interview in Armenia, Dr Koh said the EAEU offers "lots of opportunities and untapped potential for Singapore businesses to venture into".
The EAEU, which comprises Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia, is a "sizeable market", said Dr Koh, with more than 180 million people and a total gross domestic product of US$1.9 trillion (S$2.6 trillion).
On Tuesday (Oct 1), Singapore and the EAEU will sign several components of the EAEU-Singapore Free Trade Agreement, in a ceremony that will be witnessed by the union's leaders and Singapore's Prime Minister Lee Hsien Loong, who is on a four-day official visit to Armenia.
Mr Lee arrived on Saturday (Sept 28), and the following day, met Armenia's Prime Minister Nikol Pashinyan and President Armen Sarkissian.
Dr Koh, who was involved in the FTA negotiations, told reporters that when the trade deal is in force, EAEU member states will reduce tariffs on 90 per cent of goods Singapore exports to their markets. Over a 10-year period, this will increase to 97 per cent.
Goods that will benefit include chemical products, precision instruments, machinery equipment, prepared foodstuffs, mineral oils, oil distillates and pharmaceutical products, he added.
The FTA's terms also provide for goods to be cleared at customs in 24 hours, so they can reach the market faster, he said, adding that for express delivery, they can be cleared in four hours.
"So for our companies shipping products into this part of the world - with this FTA- it will ensure that there is no holdup of their goods at customs," said Dr Koh.
Singaporean food processors and manufacturers will also benefit from the ease of entry into the EAEU markets, with measures in the FTA to enhance transparency on sanitary and phytosanitary regulations, which pertain to food products safety standards, and with enhanced clearance of customs, he added.
Meanwhile, PM Lee met Supreme Patriarch and Catholicos His Holiness Karekin II on Monday (Sept 30).
The religious leader thanked the Prime Minister for Singapore's strong support for the Armenian community in Singapore over the years, and for designating the Armenian Church in Singapore as a National Monument since 1973.
PM Lee also updated His Holiness about the many contributions made by the Armenian community in Singapore since Singapore's founding, and the leaders also spoke about the importance of inter-religious dialogue to foster religious harmony.
He later met the Chairman of the National Assembly, Ararat Mirzoyan, during which both sides expressed interest in expanding relations, including strengthening parliamentary ties.
PM Lee and Mr Mirzoyan welcomed the upcoming signing of the EAEU-Singapore FTA and spoke of the potential to increase cooperation in tourism and other areas.
