S'pore and Gulf states sign FTA, recognise MUIS Halal
certification
DOHA, Qatar: The six-nation Gulf Cooperation Council (GCC)
has signed its first free trade agreement (FTA) with
Singapore.
A key component of the FTA could see Singapore exporting more Halal
food to the grouping's members.
What originally started out as an FTA between Singapore and Qatar
was widened during Prime Minister Lee Hsien Loong's visit to the
Middle East in November 2006.
After four rounds of discussions, the leaders from Singapore and
the GCC countries put their signatures to this milestone agreement,
which PM Lee said is significant in these difficult times.
"It signals our intention to develop free trade and continue to
expand our international relations economically, at a time of
considerable economic uncertainty in the world, at a time of
financial turbulence and crisis in the global financial markets,"
said PM Lee.
The FTA will grant tariff-free access to about 99 per cent of
Singapore's domestic exports worth about S$3.1 billion. All GCC
goods entering Singapore will also enjoy tariff-free access.
"Singapore could be the hub for GCC for Asian trade. There is a
good history for Singapore in finance and trade, and it is
(respected) by everybody in the world. Also GCC has the same
respect, and for that reason, both of us can be strong partners in
many important projects as well as further relations on the
economic side," said Qatar's PM Sheikh Hamad Jassim Al-Thani.
Singapore's Ministry of Trade and Industry said the FTA is a
comprehensive pact covering trade in goods and services,
investments, rules of origin, customs procedures, electronic
commerce and economic cooperation.
A key feature is a greater recognition of Singapore's
Muslim-compliant food products.
Three countries under the GCC - namely Qatar, Kuwait and the United
Arab Emirates - have agreed to recognise the MUIS (Islamic
Religious Council of Singapore) Halal Certification and Halal Mark
as equivalent to those in their countries.
MUIS said the recognition of its Halal Certification and Mark
augurs well for Singapore's position as a vital food hub. It will
help further boost trade between Singapore and the GCC countries,
and also contribute towards the harmonisation of international
Halal standards.
MUIS added that the recognition will also attract more Muslim
visitors and tourists from Asia, Middle East and beyond to
Singapore.
Aside from the three GCC countries who are immediately recognising
Singapore's Halal certification, the remaining three - Oman, Saudi
Arabia and Bahrain - are in the process of discussions.
The GCC countries are Singapore's seventh largest trading
partner.
Bilateral trade reached a record S$42.4 billion last year, a 127
per cent increase from 2002.
PM Lee said: "Bilateral trade is significant. Many of our companies
have invested in GCC countries - significant projects in
infrastructure, for example by companies like Keppel, like Hyflux,
PSA, Capital Land... There are many projects from GCC countries
which are invested in Singapore too, and we also have joint
projects between Singapore and GCC countries in (other) countries.
For example, Qatar has taken a stake in the Singapore eco-city
project in Tianjin in China."
Mr Lee hopes that once the new FTA takes effect, it will further
stimulate the links between Singapore and the Gulf states. - CNA
/ls