India, Singapore sign second protocol amending CECA

India and Singapore have signed Second Protocol amending Comprehensive Economic Cooperation Agreement (CECA) in New Delhi. Its provisions will come into effect on 14th September, 2018.

Second Protocol amending CECA

It will help to boost bilateral trade between India and Singapore. It formally brings to closure negotiations on second review of CECA. It will give effect to provisions agreed between India and Singapore during closure of second review of CECA. It will give effect to provisions agreed between India and Singapore during closure of the second review of CECA.

Background

CECA was first comprehensive agreement covering trade in goods, services and investments signed by India with any of its trading partners. It was signed in June, 2005 and its first review was concluded in October, 2007. The second review was started in May 2010. In closing second review, India and Singapore had successfully reached mutual understanding and agreement. They also had agreed to expand coverage of tariff concessions, liberalize Rules of Origin, rationalize Product Specific Rules and include provisions on Certificate of Origin and Cooperation on its verification. These measures will further facilitate trade between India and Singapore and also improve utilization of CECA. The conclusion of second review was announced during state visit of Prime Minister Narendra Modi to Singapore in June, 2018. Now, both countries are exploring the possibility of launching the 3rd Review of India-Singapore CECA in September, 2018.

India-Singapore Trade

Singapore is second largest trading partner of India within ASEAN and India is largest trading partner of Singapore in South Asia with bilateral trade of US $17.7 billion in 2017-18. Singapore’s trade with India constitutes about 21.8% of our total trade with ASEAN and 2.3% of our global trade.  India had trade surplus of US $2.73 billion with Singapore in 2017-18.

Month: Current Affairs - August, 2018