The recent signing of the Singapore Sri Lanka Free Trade Agreement has been a hot topic in the world of international trade. This agreement will undoubtedly have a significant impact on the economies of both countries, and it is essential to understand the details of the agreement fully.
The Singapore Sri Lanka Free Trade Agreement, also known as SSLFTA, was signed on January 23rd, 2018, between the two countries. This agreement aims to enhance bilateral trade between Singapore and Sri Lanka by removing tariffs and other barriers to trade. The agreement covers trade in goods, services, investment, and government procurement.
Under the SSLFTA, Singapore will gradually eliminate tariffs on 80% of goods imported from Sri Lanka over 15 years. On the other hand, Sri Lanka will remove tariffs on 70% of goods imported from Singapore over the same period. The agreement will also allow Sri Lanka to have preferential access to the Singapore market for certain products such as processed food, beverages, and tobacco.
The agreement also focuses on boosting trade in services and investments. Singaporean service providers will have greater access to the Sri Lankan market, including legal, architectural, engineering, and environmental services. Sri Lanka will also open up its education, healthcare, and transportation sectors to Singaporean businesses. Both countries will also promote investment in each other`s economies, particularly in the fields of information technology, tourism, and manufacturing.
Moreover, the agreement covers government procurement, where both governments will provide equal treatment to each other`s suppliers when participating in procurement activities. This inclusion will provide Singaporean suppliers with opportunities to bid for Sri Lankan government contracts, and vice versa.
In conclusion, the Singapore Sri Lanka Free Trade Agreement details significant changes for both countries. The agreement offers exciting opportunities for businesses in both countries, providing access to each other`s markets in goods, services, investments, and government procurement. The elimination of most tariffs will undoubtedly lead to increased trade, and the opening of new sectors to each other`s businesses will allow for greater cooperation. Overall, the SSLFTA is a win-win situation for both Singapore and Sri Lanka and is a positive step towards strengthening economic ties between the two countries.