Singapore Trade, Trade With Singapore, Trade In Singapore
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Given its strategic location and free trade policy, Singapore has achieved rapid growth in trade over the past several decades. The price and the quality of products and goods have also contributed to the expansion of trade in Singapore. The country enjoys one of the most open economies for foreign direct investment (FDI) and international trade. Economic flexibility, political stability and international competitiveness ensure GDP growth, which in turn leads to higher standards of living.
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Singapore Trade: Free Trade Agreements
Singapore actively follows a free trade policy and is focused on signing free trade agreements. It is also part of several organizations and programs, such as the WTO, ASEAN Common Effective Preferential Tariff (CEPT) program and Asian Pacific Economic Cooperation (APEC). Some of the important free trade agreements are:
- Trans-Pacific Strategic Economic Partnership Agreement (with Brunei Darussalam, the Republic of Chile and New Zealand)
- Agreement between the Government of the Hashemite Kingdom of Jordan and the Government of the Republic of Singapore on the Establishment of a Free Trade Area
- Singapore-Australia Free Trade Agreement
- Agreement Between the EFTA States and Singapore
- United States-Singapore Free Trade Agreement
- Agreement between New Zealand and Singapore on a Closer Economic Partnership (ANZSCEP)
Singapore Trade: Exports
Despite Singapore’s small size, the country is a significant player in the exports market. In April 2008, Singapore was among the top 15 trading partners of the US. This Asian nation is an exporter of electronic goods, particularly IT-related products. It is the world’s leading manufacturer of computer disk drives. The country’s top export partners are the US, Indonesia, Hong Kong and China.
Some of the key items exported by the country are:
- Machinery and equipment (including electronics)
- Consumer goods
- Chemicals
- Mineral fuels
The export of most items is not regulated by the Singapore authorities. However, the export of granite, rubber, chlorofluorocarbons and timber are subject to licensing.
Singapore Trade: Imports
Singapore imports electronic raw materials and minerals. Most of its imports are furnished into finished products for exporting to other nations. Singapore imports from Malaysia, the US, Indonesia, China and Japan. The main items imported by Singapore are:
- Aircraft
- Crude oil and petroleum products
- Electronic components
- Motor vehicles
- Iron/steel
- Textile yarns/fabrics
- Radio and television receivers/parts
The country does not levy tariff on more than 98% commodities. Custom duty is levied on the import of petroleum products, motor vehicles, liquor and tobacco.
Singapore Trade: Important Ports
The port of Singapore is the busiest port in the world in terms of tons of container traffic. According to 2005 figures, the port of Singapore handled 1.15 billion gross tons (GT) through specialized terminals, each of which caters to 800 ships per day on an average. Given Singapore’s strategic position in Asia’s trading route, there are more than 400 maritime lines linking the country with the entire world.
