Singapore and MERCOSUR Bloc Sign Free Trade Agreement (FTA)
Singapore and the MERCOSUR Bloc trade coalition signed an FTA, marking Singapore’s inaugural FTA with the MERCOSUR group and member countries.
The MERCOSUR Bloc trade coalition comprises Uruguay, Brazil, Argentina, and Paraguay. The FTA agreement was signed to catalyse trade, as more than 100 Singaporean companies are already active within MERCOSUR territories.
An FTA to Spur Growth
Some of the FTA’s regulations to help spur growth include equitable conditions for companies vying for government procurement opportunities. The MERCOSUR has a population of more than 295 million people and a GDP of US$2.2 trillion. Singapore enterprises are actively involved in manufacturing, energy, agri-business, infrastructure, and hospitality across the MERCOSUR markets.
Singapore also has 100 registered MERCOSUR companies, a testament to the investment potential and commercial prospects between the regions. Some of the MERCOSUR Block FTA features that will encourage growth include flexible regulations for exporters who are based in Singapore. Companies who are trying to get government procurement will receive impartial treatment, too. These regulations will apply across various domains, including goods, investments, services, and intellectual property.
The FTA is expected to generate a 15% surge in Singapore’s exports to MERCOSUR and a 10% increase in imports to MERCOSUR. New employment opportunities are also anticipated in both territories as a result of the boost that the FTA is bound to generate.
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