Leveraging the EU-Singapore FTA to export Asian food products

IN the EU's manufacturing scene, the food and beverage (F&B) sector accounts for the largest share of both jobs and value-added. The EU's F&B exports have doubled over the last decade, amounting to some 110 billion euros (S$175 billion) in 2019.

The European Commission plays an active role in the food supply chain, leading policy formulation, promoting price transparency, combating unfair trading practices, and providing platforms for dialogue among members. It also manages the trade regime for processed agricultural products.

Opportunities for Singapore companies

Singapore companies looking to export their food products to the EU can leverage the EU-Singapore FTA, which provides preferential tariff treatment for qualifying Asian food products made in Singapore.

To drive Singapore's development as a trusted food hub, the government has built up a strong quality and standards infrastructure that continuously strengthens the food supply.

For instance, Singapore is developing an integrated cold chain management standard to strengthen the supply chain of fresh produce and chilled products. This standard will cover fresh produce such as meat, fish, vegetables and dairy products.

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To support the national initiative of producing 30 per cent of nutritional needs by 2030, Singapore is also developing a world-first "clean and green" standard for urban farms.

This differentiates modernised farming from conventional farming, by requiring a clean, resource-efficient environment without pesticides and antibiotics.

On the testing, inspection and certification front, the food and agriculture sector has the second-highest demand for such services in Asean. In short, Singapore's strong quality and standards regime positions the country as an ideal partner for trade in food products.

FRANCE

Famed for gourmet products such as wine and cheese, France is Europe's top-ranked food exporter. In 2018, its most important food exports included wines and beverages (16.3 billion euros) and dairy products (6.5 billion euros).

The organic agriculture sector in France is growing rapidly, with organic farms covering 9.5 per cent of the country's farm area, and organic food sales rising 15.7 per cent in 2019, making France the second-largest organic market in the EU behind Germany.

With the French being known as sophisticated consumers, establishing a food manufacturing business in France is one way to ease products into Europe. The world's largest food innovation exhibition, SIAL Paris, is one avenue for food firms keen on entering the French market.

THE NETHERLANDS

The food sector is one of the Netherlands' key sectors, due to the country's strengths in knowledge-intensive, high-tech and productive farming. While the country ranks 134th in the world by land surface area, it ranks among the top five globally in terms of food exports.

Dutch agricultural entrepreneurs use efficient and sustainable production systems and processes, resulting in productivity that is five times higher than the European average and the highest in the world. Some of the country's top food exports are dairy, eggs, meat and vegetables.

The Netherlands is home to more than 1,500 international food companies, and it has the second highest private R&D investment in agrifood in Europe. Of the world's top 40 food and drinks companies, 12 have R&D centres in the Netherlands.

POLAND

In Central and Eastern Europe, Poland stands out as a leading producer and exporter of fruits, dairy products and meat.

Four regions in north-west Poland lead the whole of the EU with the highest levels of employment in the food manufacturing sector.

Agriculture is one of Poland's biggest industries, accounting for 3.8 per cent of the country's GDP in 2018, and employing 12.7 per cent of the country's labour force.

Among others, Poland is Europe's largest apple producer, and second largest blueberry and raspberry producer.

Polish food companies are keen to increase their exports of eggs, meat, canned and frozen vegetables to Singapore as a springboard to access the rest of the Southeast Asia region.