A concerted push to create more jobs and boost economic growth

A SMOOTH implementation of all the commitments of the EU-Singapore Free Trade Agreement (EUSFTA) is a key priority for Singapore and the European Union (EU), said the European Union's Ambassador to Singapore Barbara Plinkert.

This continued effort, she said, will allow companies - especially small and medium-sized enterprises (SMEs) - to enjoy a level playing field and enhanced market access to reap the full benefits of the agreement.

"Thanks to this consolidated effort, the EUSFTA can contribute to creating more jobs and economic growth. I strongly hope that this agreement can result in deeper economic integration of the EU and Singapore for the benefit of all, and convergence in terms of setting standards," she said in an interview with The Business Times.

"Given the present circumstances in which the economic forecast is rather gloomy, FTAs like the one with Singapore can effectively contribute to a sustainable economic recovery after the Covid-19 pandemic," she added.

Ms Plinkert also expressed hope that the EUSFTA, in tandem with the recently applied EU-Vietnam FTA, can serve as pathfinders for a future free trade deal with the entire Southeast Asia region.

"The recovery in the aftermath of Covid-19 and the adaptation of economic business operations to the new normal are part of our most immediate challenges," she said.

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Ms Plinkert began her term as the EU Ambassador to Singapore in 2017 - a significant year as the EU turned 60 while ASEAN celebrated its Golden Jubilee. EU and ASEAN also marked 40 years of relations that year.

Key partner

Singapore is a key partner of the EU, with the Republic now serving a three-year role as ASEAN's coordinator for EU relations since the middle of 2018.

In October 2018, three landmark agreements were signed - the EUSFTA, the EU-Singapore Investment Protection Agreement, and the EU-Singapore Partnership and Cooperation Agreement.

Among the 10 Asean member states, Singapore is the largest trade and investment partner of the EU in the region, with an annual bilateral trade in goods and services figure of 100 billion euros (S$160 billion) and EU foreign direct investment stocks in Singapore reaching 191 billion euros.

Currently, more than 10,000 EU companies use Singapore as a strategic trade, transport and finance hub for their business operations in ASEAN or the wider Asia-Pacific region.

There is an ongoing effort to help more Singapore businesses tap into the benefits of the EUSFTA, said Ms Plinkert.

The EU Delegation to Singapore, European Chamber of Commerce in Singapore, Singapore's Ministry of Trade and Industry, Enterprise Singapore and the Singapore Business Federation have conducted many outreach events to raise awareness of the FTA, and more such events are in the pipeline.

Apart from guidance material online, Singapore and EU exporters can also make use of a free online tool launched recently by the European Commission called

Access2Markets to understand all the requirements needed to export to the EU and Singapore respectively.

"The first anniversary of the entry into force of the agreement (on November 21, 2020) provides a great opportunity to step up the efforts in advertising the EUSFTA and its benefits to the general public," said Ms Plinkert.

"The EU Delegation is currently organising a series of sectorial outreach events to explain to business representatives and relevant stakeholders the specific provisions of the EUSFTA and how they can benefit from them," she added.

Asked about the biggest challenges and opportunities for EU-Singapore trade in the coming years, Ms Plinkert said that both parties must continue the hard work to preserve the multilateral trading system in times of rising protectionism.

"The EUSFTA is already a proof of our joint commitment to open and free trade. Sustainability is another key aspect of our trade relations, and we must ensure that increased trade goes together with enhanced environmental and labour standards, so it can benefit companies, small businesses, workers, consumers and civil society at large," she said.

While she noted that the Covid-19 pandemic has negatively affected trade flows in the region, there are also opportunities over the longer term for the EU to engage in new initiatives to boost bilateral and regional relations.

This, said Ms Plinkert, is in addition to the existing cooperation at the regional level with ASEAN and in multilateral settings such as the World Trade Organization and the Group of 20.

"The pandemic calls for a coordinated approach and response by all international actors. Relaunching the economy does not mean going back to the status quo before the crisis, but bouncing forward by investing in our long-term future for new generations," she said.

"The recovery must be green, taking into account the challenges linked to climate change, geared towards the digital transition, and be inclusive, to make sure nobody is left behind.

"Strong international alliances will be needed to make sure we can fight climate change and achieve our global Sustainable Development Goals. Ultimately, the pandemic also gives us opportunities to further strengthen our relations with Singapore in areas of common interest."