Regional and Bilateral Initiatives

Canada - Singapore - Free Trade Agreement Negotiations

As Singapore is a strategically placed trading partner, a free trade agreement (FTA) has the potential to yield meaningful economic benefits for Canada, especially in the areas of investment and services. An FTA would not only raise Canada’s profile in Singapore, but would facilitate goods and services trade, as well as improve Canada’s ability to participate in global value chains by taking advantage of Singapore’s position as a pre-eminent hub in the region.

Update on Negotiations

Following a meeting on the margins of the 2006 Asia-Pacific Economic Cooperation (APEC) ministerial meetings, Minister of International Trade David L. Emerson and his Singaporean counterpart, Minister Lim Hng Kiang, agreed to resume formal negotiations toward a free trade agreement with a view to concluding by early 2007. This demonstrates that Canada is serious about strengthening economic relations with the Asia-Pacific region. The government will continue to consult with Canadian stakeholders as the talks proceed.

Background

Canada and Singapore announced on June 5, 2000, that the two countries would begin exploring the possibility of negotiating a bilateral free trade agreement (News Release). Canadian and Singaporean officials met twice to discuss the possible scope of a prospective agreement, and the Government of Canada launched a comprehensive domestic consultations process. The Canadian and Singaporean Prime Ministers then announced the launch of negotiations on October 21, 2001, on the margins of the APEC Economic Leaders' Meeting in Shanghai, China (News Release).

Since then, Canada and Singapore have held six rounds of negotiations, the last of which was in October 2003. Despite progress made, more work remained on issues such as market access and protection for services and investment. Officials from both countries are currently taking steps to renew discussions toward the successful early conclusion of the agreement. In this regard, on October 10, 2006, Canadian and Singaporean officials met in Singapore to take stock of outstanding issues and to discuss the potential parameters under which Canada and Singapore could resume formal negotiations.

These negotiations have covered a wide range of topics, including: trade in goods, trade in services, financial services, investment, government procurement, dispute settlement and competition policy. Labour and environmental issues have been addressed in parallel meetings in fulfilment of Canada's intention to pursue side agreements with Singapore in these areas.

Singapore is already an important trade and investment partner for Canada in the Asia-Pacific region. In 2005, Canadian merchandise exports to Singapore were valued at $637 million, while Canada’s imports from Singapore were $973 million. Canada’s exports of services to Singapore amounted to $251 million, while services imports from Singapore were valued at $1 billion in 2004, the latest year for which this data is available. Canadian foreign direct investment (FDI) in Singapore is significant totalling $3.6 billion in 2005. Singaporean FDI into Canada was smaller, valued at $47 million in 2005.

Initial Environmental Assessment

In keeping with the Framework for Conducting Environmental Assessments of Trade Negotiations, an initial environmental assessment (EA) of the Canada-Singapore free trade negotiations was conducted to help negotiators to better integrate environmental considerations into the negotiating process.

Initial Environmental Assessment of the Canada-Singapore Free Trade Negotiations

Contact point

If you have questions or comments about this initiative we would like to hear from you. Please contact Foreign Affairs and International Trade Canada at: