UK exited the EU on 31st January 2020, and it has till 31st December 2020 to come up with a trade deal with the EU. Long talks and intense negotiations have been going on between the two parties, but we are already near the mid of December and there is no deal as yet. However, the UK has been signing deals with other nations in the meanwhile. In October 2020, a trade deal was signed with Japan, and in November, a deal between Canada and the UK was signed. Now, recently, the UK and Singapore have signed a free trade deal worth around £17.6bn.
This trade deal is almost a replica of the deal between Singapore and the EU. Also, for both the countries, this trade deal was important so that their normal trade would continue after 1st January 2021, otherwise, once the transition period is over, all trade would have ceased between the two nations. Then any trade possibility would have been under the terms of the World Trade Organization only.
The free trade deal of Singapore and the UK ensures a certain, secure business between the two countries.
Apart from providing security and certainty of business, this deal also provides a secure means for the digital and services trade too, which is what both the nations are aiming for. As per Liz Truss, this deal further establishes the fact that the UK is quite self-sufficient and it is capable of trading internationally on its own, without the support of the European Union.
Singapore used to be a part of Britain and even now, despite its small size, it is still a major trading partner of the UK. Many Singaporeans still prefer to go to the UK to study and work. Although Singapore’s exports account for just a little fraction of the UK’s trade, still the UK needs to have all its allies on its side, bound with agreements before the transition period ends.
This deal between Singapore and the UK will remove tariffs that will allow both countries to access each other’s markets and services without any problem. Also, the non-tariff barriers that restrict the import and export of goods and services through some other measures apart from tariffs will be cut out for electronics, automobiles and their parts, medicines, medical equipment, and renewable energy generation. Duties will also be removed around November 2024. That is when the contract between the EU and Singapore will also end.
Chan Chun Sing believes that the deal will be a strong statement against protectionism and nativism.
Beyond the obvious business benefits for both nations, this deal will be crucial for their image and reputation in the world too. Also, it will ensure a strong and sturdy post-pandemic recovery for the world too.
This deal will open the UK’s ways to become a member of the Association of Southeast Asian Nations, which includes 10 countries and is a crucial growth region.
After the chief negotiators from the EU and the UK paused their talks about a post-Brexit deal, the decision was left on the UK PM and EC President.
Last week, both the chief negotiators of the European Union and the UK had decided to pause their talks because even after intense negotiations, they were not able to reach a conclusive deal. The decision was relying on the UK’s Prime Minister Boris Johnson and Ursula Von Der Leyen, the president of the European Commission who were supposed to meet to think upon a solution before the transition period ends.
However, they met, even had dinner, but the differences amongst them remained as wide as before! Without ever reaching any settlement, both the parties parted away in disappointment as their key differences remained to stick out. There are even talks that there may not be any trade deal between the EU and the UK eventually. This is not good.
I’m Ava Paul, an experienced news website author with a special focus on the entertainment section. Over the past five years, I have worked in various positions of media and communication at World Stock Market. My experience has given me extensive knowledge in writing, editing, researching and reporting on stories related to the entertainment industry.
