Armenia to Sign Trade Agreement with Singapore

The government of Armenia approved today, September 26, during its meeting, the proposal to sign a framework agreement on comprehensive economic cooperation between the Eurasian Economic Union and its member states, on one side, and the Republic of Singapore, on the other.

Additionally, the Cabinet approved the proposal to sign a free trade agreement between the Eurasian Economic Union and its member states, and the Republic of Singapore, as well as an agreement on trade in services and investments between the Republic of Armenia and the Republic of Singapore.

Minister of Economy Tigran Khachatryan noted that the unified package of agreements on the development of trade and economic cooperation between the EEU and Singapore was developed in accordance with the decision of the Eurasian Economic Supreme Council dated December 26, 2016.

The comprehensive economic cooperation agreement provides for a commitment to multi-faceted development of interaction between the parties, aimed at promoting trade in goods and services, expanding cooperation, and ensuring modern standards for capital investments, establishment, and protection of enterprises.

Simultaneously, the aforementioned agreement solidifies the intention of the parties to conclude agreements on free trade in goods, investments, and services, according to the rules and jurisdictions established by them.

Seven rounds of negotiations have been held with Singapore. The goal of the agreement is to create a favorable environment and conditions for the development of mutual trade relations and to promote economic cooperation in areas of mutual interest, as well as to eliminate trade and investment barriers between the parties, reduce business costs, and increase economic efficiency.

The relations regarding more than 12,000 types of goods are expected to be regulated, with a zero percent customs duty on 4,800 of them applied immediately after the agreement comes into force. For other goods, the zero customs duty will come into effect 3-10 years later.

The agreement on trade in services and investments between the Republic of Armenia and the Republic of Singapore liberalizes international trade in goods. Essentially, it facilitates the processes of trade in services and making investments between Armenia and Singapore.