Singapore first to ratify Asean Trade in Services Agreement

SINGAPORE on Monday became the first Asean member state to ratify the Asean Trade in Services Agreement (ATISA), said the Ministry of Trade and Industry (MTI).

This comes after Singapore completed its domestic procedures to ratify the agreement signed by Trade and Industry Minister Chan Chun Sing on the sidelines of the 25th Asean Economic Ministers' Retreat in 2019, MTI said in a statement.

Singapore has also notified the Asean secretary-general of the ratification, it added.

This means Singapore's rights and obligations under ATISA will begin immediately, while the other Asean member states are continuing their internal procedures to ratify ATISA within the year, the ministry said.

"The agreement will help strengthen services-related trading arrangements among AMS (Asean member states), enabling Asean businesses to enjoy increased market access and reduced discriminatory regulatory barriers," Mr Chan said.

He added that Singapore will continue to encourage other Asean member states to expedite their ratification of the agreement so that businesses can reap the benefits sooner.

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ATISA is built upon the existing Asean Framework Agreement on Services and is enhanced by a further reduction of "beyond-the-border" barriers, MTI said.

It provides a legally-binding guarantee of the widest preferential services market access into Asean markets to date, beyond Asean's existing agreements, including the recently signed Regional Comprehensive Economic Partnership, the ministry added.

The agreement is expected improve business confidence and to benefit businesses and service suppliers in all sectors, including professional services, telecommunications, financial services, computer and related services and distribution and logistics services.

On the whole, more than 70 per cent of the services subsectors in Asean markets will be fully open to Singapore-based services suppliers, according to MTI.

Companies can own more than 51 per cent of foreign equity shareholding rights in these committed sectors, with some sectors allowing for up to 70 per cent of foreign equity limits.

MTI said the ATISA will lay the ground for continued growth in Asean's services trade, which was worth more than US$844.6 billion in 2019.

When fully implemented by all Asean member states, ATISA will make up the third and final part of a trio of Asean agreements meant to improve the region's economic and sectoral integration. The other two are the Asean Trade in Goods Agreement and Asean Comprehensive Investment Agreement.