Singapore’s impressive network of 27 Free Trade Agreements (FTAs) is the key to opening its considerable business opportunities across growing and established global markets.
With 15 bilateral and 12 regional agreements, these well-established FTAs give companies based in Singapore tangible competitive edges through reduced tariffs, streamlined customs procedures, and protected market access.
The true scale of these agreements demonstrates their massive economic impact. For example, the Regional Comprehensive Economic Partnership (RCEP) is just one of Singapore’s significant FTAs.
It covers 30% of global GDP and represents a third of the world’s population. In total, the city-state’s yearly international trade exceeds US$780 billion, showing the essential commercial ties these agreements help build.
Companies gain clear benefits from Singapore’s FTA structure. The agreements, on average, cut tariffs by 80% to 100% on products made in Singapore. This broad reduction in trade barriers, paired with Singapore’s strong legal framework and expert talent pool, makes the country an effective base for regional business operations.
For business leaders and investors planning to enter or extend their presence in the Asian markets, this article will explain the specific cost savings, market access benefits, and strategic improvements available through every FTA.
Understanding these opportunities allows your business to build genuine competitive advantages and reduce operational costs across multiple high-growth, lucrative markets.
The Strategic Advantage
Singapore’s FTA network creates specific economic benefits that set it apart from other Asian business centres. The agreements affect 27 trading partners, including the world’s largest economies and fastest-growing markets, giving Singapore-based companies preferential access across Asia, Europe, and the Americas.
The GCC-Singapore Free Trade Agreement (GSFTA) shows these benefits: trade between Singapore and Gulf nations rose to US$43 billion in just five years after implementation.
This pattern repeats across other agreements. Since the China-Singapore Free Trade Agreement (CSFTA) took effect, China became Singapore’s top merchandise trading partner, accounting for 13.9% of Singapore’s total merchandise trade in 2023.
For international businesses, these agreements offer three key financial benefits:
- Direct cost reduction through eliminated tariffs, often reaching 95-99% of product categories
- Faster market entry through simplified customs procedures and documentation
- Protected investments through legal frameworks that secure business rights
The agreements also address modern business needs. New digital economy partnerships with the UK, EU, and other nations create frameworks for cross-border data flows, electronic payments, and technology development. These rules give Singapore-based tech companies and digital businesses clear paths to international growth.
Each FTA opens specific opportunities based on industry sector and target market. A US electronics manufacturer, for instance, might cut costs by making Singapore their Asian production base, while a European services firm might gain faster market entry to Southeast Asia through Singapore’s regional agreements.
Singapore’s Bilateral Free Trade Agreements
1. China-Singapore FTA (CSFTA)
- JAN 2009: CSFTA entered into force
- NOV 2018: Upgraded CSFTA signed
- OCT 2019: Upgraded CSFTA entered into force
- DEC 2023: CSFTA Further Upgrade Protocol signed (pending entry into force)
For Singapore-based companies eyeing the Chinese market, the CSFTA eliminates tariffs on 95% of exports to China. The agreement gives investors unprecedented access to over 20 of China’s services sectors – from construction to technical services – without equity limits. A 2023 upgrade added new rules in telecommunications and investment protection, making business operations more predictable and profitable.
2. India-Singapore Comprehensive Economic Cooperation Agreement (CECA)
- AUG 2005: CECA entered into force
CECA doubles bilateral trade through tariff reductions or eliminations on electronics, machinery, and pharmaceuticals. Singapore banks gain expanded access to India’s financial sector. The agreement protects intellectual property rights and offers dispute resolution mechanisms for greater investment security.
3. Japan-Singapore Economic Partnership Agreement (JSEPA)
- NOV 2002: JSEPA entered into force
- SEP 2007: Revised JSEPA entered into force
This agreement cuts tariffs on 92% of Singapore exports to Japan. Companies benefit from reduced testing requirements for electronics and telecommunications equipment. Singapore-based brokers can access Japanese clients in marine, aviation, and transit insurance
4. Korea-Singapore FTA (KSFTA)
- MAR 2006: KSFTA entered into force
The KSFTA eliminates tariffs on 91.6% of Singapore exports. Singapore companies gain non-discriminatory treatment in Korean government procurement. The agreement includes mutual recognition for electronics testing, reducing time and costs for market entry.
5. Panama-Singapore FTA (PSFTA)
- JUL 2006: PSFTA entered into force
Singapore exporters enjoy zero tariffs on 98% of goods entering Panama. The agreement creates a single government procurement market, giving Singapore companies equal access to Panama’s public contracts. Companies benefit from simplified customs procedures through self-certification of origin.
6. Peru-Singapore FTA (PeSFTA)
- AUG 2009: PeSFTA entered into force
More than 87% of Singapore’s exports to Peru receive reduced tariffs. Singapore service providers gain access to insurance, professional, and transport sectors. The agreement guarantees non-discriminatory treatment for digital products and keeps electronic transmissions duty-free.
7. Singapore-Australia FTA (SAFTA)
- JUL 2003: SAFTA entered into force
- JUN 2015: SAFTA upgraded under CSP agreement
- OCT 2016: Upgraded SAFTA signed
- DEC 2017: Upgraded SAFTA entered into force
All Singapore exports to Australia are free of tariffs. The agreement reduces regulatory barriers for food products, wine, cosmetics, and medical devices. Singapore investors benefit from higher thresholds for foreign investment screening by Australia’s review board.
8. Singapore-Costa Rica FTA (SCRFTA)
- JUL 2013: SCRFTA entered into force
Over 95% of Singapore exports enter Costa Rica duty-free. The agreement opens opportunities in government procurement for port and airport projects. Singapore investors receive protection against discriminatory treatment and expropriation.
9. Singapore-Jordan FTA (SJFTA)
- AUG 2005: SJFTA entered into force
This agreement eliminates tariffs on 97.5% of Singapore exports. Products qualify for preferential treatment with just a 35% local content requirement. Singapore service providers gain preferred access to research, advertising, and convention services.
10. Sri Lanka-Singapore FTA (SLSFTA)
- MAY 2018: SLSFTA entered into force
The SLSFTA provides tariff-free access for 80% of Singapore exports. Companies can bid for projects by Sri Lankan central entities and state-owned enterprises. The agreement enables cross-border data transfer and protects against data localisation requirements.
11. Turkey-Singapore FTA (TRSFTA)
- OCT 207: TRSFTA entered into force
Singapore exports gain 91% tariff-free access to Turkey, rising to 95% by 2027. The agreement includes simplified rules of origin for Asian processed products. Singapore companies can bid for projects in all 30 Turkish metropolitan municipalities.
12. US-Singapore FTA (USSFTA)
- JAN 2004: USSFTA entered into force
As America’s first FTA with an Asian nation, this removes duties on 100% of Singapore-origin goods. US businesses save through waived merchandise processing fees. Singapore companies receive equal treatment in US government procurement bids.
The agreement includes advanced provisions for e-commerce, with no customs duties on digital products and software. Singapore service providers gain preferential market access in financial, environmental, distribution and professional services sectors.
Related Read: Decoding the Double Taxation Agreement in Singapore
13. Agreement between New Zealand and Singapore on a Closer Economic Partnership (ANZSCEP)
- JAN 2001: ANZSCEP entered into force
- MAY 2019: Upgraded ANZSCEP signed
This pioneering agreement, Singapore’s first bilateral FTA, gives all Singapore goods tariff-free entry to New Zealand. Companies benefit from streamlined administrative procedures that reduce transaction costs.
The agreement includes mutual recognition for electrical and electronic equipment testing, eliminating duplicate certification costs. Singapore exporters qualify more easily for duty-free treatment through flexible rules of origin.
14. UK-Singapore FTA (UKSFTA)
- DEC 2020: UKSFTA signed
- JAN 2021: UKSFTA took effect via provisional application
- FEB 2021: UKSFTA entered into force
British market access becomes more straightforward with this agreement’s eliminating tariffs on 84% of Singapore products. Singapore companies can bid for UK government projects at city and municipal levels, particularly in transport, financial services, and utilities. Electronic components, chemicals, and processed food products see immediate duty-free entry.
15. EU-Singapore FTA (EUSFTA)
Companies exporting to the EU benefit from progressive tariff elimination – 84% from 2019, reaching 100% within five years. Singapore manufacturers gain extra advantages through regional sourcing: they can include ASEAN materials in their products while keeping preferential EU access. The agreement also cuts duplicate testing requirements in electronics, vehicles, and pharmaceuticals.
Singapore’s Regional Free Trade Agreements
1. ASEAN-Australia-New Zealand Free Trade Area (AANZFTA)
- JAN 2010: AANZFTA entered into force
- OCT 2015: First Protocol to Amend AANZFTA entered into force
Eliminates tariffs on at least 90% of goods traded between ASEAN Member States, Australia and New Zealand. Companies qualify products more easily for preferential treatment through regional cumulation. Provides investment protection and recourse mechanisms for dispute resolution.
2. ASEAN-China Free Trade Area (ACFTA)
- JUL 2005: Trade in Goods Agreement entered into force
- JUL 2007: Trade in Services Agreement entered into force
- AUG 2009: Investment Agreement entered into force
- NOV 2012: Chapters on TBT and SPS incorporated
Eliminates tariffs on 94.6% of Singapore exports to China. Products with 40% ASEAN or China content qualify for benefits. Companies gain market access across six Chinese services sectors including engineering, construction, and securities services.
3. ASEAN-Hong Kong, China Free Trade Area (AHKFTA)
- NOV 2017: Agreement signed
- JUN 2019: AHKFTA entered into force for Singapore, Thailand, Myanmar, Vietnam and Laos
The agreement eliminates or reduces customs duties on goods from Hong Kong, with Singapore committing to zero customs duties. Hong Kong businesses gain access to ASEAN’s services sectors, which include professional services, financial services, and telecommunications.
The agreement enhances investment protection and enables Hong Kong business visitors to stay in ASEAN countries for up to 90 days. Companies benefit from simplified customs procedures and better investment protection measures.
4. ASEAN-India Free Trade Area (AIFTA)
- MAY 2011: Trade in Goods Agreement entered into force
- JUL 2015: Trade in Services and Investment Agreements entered into force
Eliminates tariffs for 75% of goods traded between ASEAN and India. Products need only 35% local content to qualify for benefits. Opens access to professional services, computer services, and financial services sectors.
5. ASEAN-Japan Comprehensive Economic Partnership (AJCEP)
- APR 2008: AJCEP signed
- DEC 2008: AJCEP entered into force
- OCT 2018: First Protocol negotiated
- FEB 2022: First Protocol entered into force
Eliminates tariffs on 84.5% of Singapore exports to Japan. Provides market access in research, postal/courier, education, and audio-visual services. Protects investors against discriminatory treatment.
6. ASEAN-Korea Free Trade Area (AKFTA)
- JAN 2010: AKFTA entered into force
Achieves 90.3% tariff liberalisation for goods traded between ASEAN and Korea. Opens market access in construction, education, environmental and tourism services. Products with 40% ASEAN or Korea content qualify for benefits.
7. ASEAN Economic Community (AEC)
- 2010: ASEAN Trade in Goods Agreement (ATIGA) entered into force
- 2025: Upgrade to be signed.
Eliminates 98.64% of all tariffs in the region. Certified Exporters can self-certify origin of exports through ASEAN-wide Self-Certification Scheme. Electronic Certificates of Origin now mandatory through ASEAN Single Window.
8. Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
- DEC 2018: CPTPP entered into force
- JUL 2023: United Kingdom accession protocol signed
Eliminates tariffs on 99% of goods across CPTPP members. Enables regional cumulation of materials from CPTPP countries. Opens government procurement opportunities in IT, construction, and consultancy sectors.
9. EFTA-Singapore Free Trade Agreement (ESFTA)
- JUN 2002: Agreement signed
- JAN 2003: Entered into force
The ESFTA removes tariffs on 99.8% of Singapore exports to Iceland, Liechtenstein, Norway, and Switzerland. Exporters enjoy immediate tariff benefits through self-declaration of product origin, with no additional application needed. The agreement extends beyond basic trade, providing intellectual property protections that exceed WTO standards
10. GCC-Singapore Free Trade Agreement (GSFTA)
- SEP 2013: Entered into force
This agreement opens duty-free access for 98.6% of Singapore exports to Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and UAE. Companies benefit from predictable advance rulings on tariff qualifications. Singapore service providers gain access to key sectors including legal, construction, education, and maritime transport
11. Regional Comprehensive Economic Partnership (RCEP)
- NOV 2020: Agreement signed
- JAN 2022: RCEP entered into force for 10 parties:
- Australia, Brunei, Cambodia, China, Japan, Laos, New Zealand, Singapore, Thailand and Vietnam
- FEB 2022: Entered into force for South Korea
- MAR 2022: Entered into force for Malaysia
- JAN 2023: Entered into force for Indonesia
- JUN 2023: Entered into force for Philippines
Eliminates tariffs on 92% of goods traded amongst RCEP parties. Streamlines rules of origin with regional cumulation benefits. Creates a more conducive digital trade environment with enhanced e-commerce provisions.
Related Read: How the RCEP Affects ASEAN Businesses
12. Trans-Pacific Strategic Economic Partnership (TPSEP)
- JUN 2005: Agreement drafted
- JUL 2005: Agreement signed
- MAY 2006: TPSEP entered into force for New Zealand and Singapore
- JUL 2006: TPSEP entered into force for Brunei
- NOV 2006: TPSEP entered into force for Chile
This foundational agreement between Brunei, Chile, New Zealand and Singapore eliminates tariffs on 90% of goods traded between member countries. The agreement goes beyond basic trade to include rules of origin, trade remedies, sanitary measures, and technical barriers.
Companies gain access to government procurement opportunities and intellectual property protections. For services trade, the agreement reduces restrictions on foreign capital participation and employment.
Pending Singapore FTAs
Pacific Alliance-Singapore Free Trade Agreement (PASFTA)
- SEP 2017: Negotiations formally launched
- JUL 2021: Negotiations concluded
- JAN 2022: PASFTA signed
When implemented, it will eliminate tariffs on most tariff lines between Singapore and Pacific Alliance members (Chile, Colombia, Mexico, and Peru). The agreement simplifies customs procedures and provides improved transparency.
It gives Singapore service suppliers and investors the same favourable treatment as those in Pacific Alliance countries in committed sectors. Companies that sell products with embedded software will not be required to release their source code.
MERCOSUR-Singapore Free Trade Agreement (MCSFTA)
- JUL 2022: Agreement substantially concluded
- DEC 2023: Agreement signed
Will gradually eliminate import tariffs on approximately 96% of products over 15 years, with immediate tariff-free access for around 25% of products. The agreement simplifies procedures and increases transparency for more efficient customs clearance.
Companies will receive fair and non-discriminatory treatment when competing for government contracts in MERCOSUR markets (Argentina, Brazil, Paraguay, and Uruguay).
Where to Next With InCorp
Singapore’s network of 27 FTAs creates proven financial advantages for well-positioned companies. These well-established agreements offer direct cost savings, market entry rights, and legal safeguards spanning Asia, Europe, and the Americas.
Singapore, of course, does not rest on its laurels, as demonstrated by two further pending FTAs in the work. For organisations wishing to expand operations or optimise their regional presence, these FTAs serve as the best avenues for reducing costs and increasing market share.
Find out more about these trade benefits for your business today. Connect with us to get started!
FAQs about Singapore Free Trade Agreements
- Singapore's FTAs cut import duties by 80-100% on qualified goods. Companies also reduce costs through faster customs processing and gain revenue through wider market access. Each agreement offers distinct financial benefits based on industry and target market.
- Most agreements require 35-40% Singapore or partner country content. Different rules apply to various product categories, with documentation standards set by each importing country. The requirements shift based on industry, product type, and specific agreement terms.
- The RCEP agreement spans the Asia-Pacific region's major economies. China trade flourishes under the CSFTA, whilst the EU and US agreements provide extensive market rights. Each FTA suits different business objectives and product categories.