Commissioner for Trade Cecilia Malmström commented earlier in the year: “In uncertain times, we need agreements like these more than ever. They will help Europe and Singapore to prosper, boosting our trade and strengthening an already essential relationship. The agreements will benefit workers and farmers, as well as small and big companies on both sides. They include a strong commitment to human and labour rights and to protecting the environment. This is yet another signal that open, fair and rules-based global trade is here to stay.”

Singapore is by far the EU's largest trading partner in the Southeast Asian region, with a total bilateral trade in goods of over 53 billion euros and 51 billion euros-worth of trade in services. Over 10 000 EU companies are established in Singapore and use it as a hub to serve the whole Pacific region. Singapore is also the number one location for European investment in Asia, with investment between the two growing rapidly in recent years: combined bilateral investment stocks reached 344 billion euros in 2017.

Under the trade agreement, Singapore will remove all remaining tariffs on EU products and will commit to keep unchanged the current duty-free access for all other EU products. The agreement also provides new opportunities for EU services' providers, among others in sectors such as telecommunications, environmental services, engineering, computing and maritime transport. It will also make the business environment more predictable. Singapore also agreed to remove obstacles to trade besides tariffs in key sectors, for instance by recognising the EU's safety tests for cars and many electronic appliances or accepting labels that EU companies use for textiles.

The investment protection agreement will ensure a high level of investment protection, while safeguarding the EU's and Singapore's rights to regulate and pursue public policy objectives such as the protection of public health, safety and the environment. The agreement will replace 12 bilateral investment treaties existing between EU Members and Singapore putting in place a modern common investment protection framework with a well-balanced Investment Court System for resolving investment disputes.

With both agreements, the EU has made an important stride towards setting high standards and rules for its trade and investments with the fast-growing Southeast Asian region. The agreements offer huge economic opportunities, while fully safeguarding public services and parties' right to regulate. The trade agreement also includes a comprehensive chapter on trade and sustainable development that sets the highest standards of labour, safety, environmental and consumer protection for trade and investment between the parties; as well as strengthening joint actions on sustainable development and climate change.