A free trade agreement (FTA) between Singapore and the Gulf Cooperation Council (GCC) entered into force on January 1, 2015.

Singapore and the GCC – comprising Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates – jointly announced the launch of FTA negotiations in November 2006, and the FTA was signed on December 15, 2008.

With the entry into force of the agreement, approximately 93.9 percent of all Singaporean goods exported to the GCC qualified for immediate tariff-free concessions, while an additional 2.7 percent of tariff lines will qualify for the same tariff-free concessions in 2018. Singapore also granted zero-tariff treatment on all GCC imports with immediate effect.

The FTA covers trade in goods, trade in services, investment, rules of origin, customs procedures, government procurement, electronic commerce, and economic cooperation.

Ahmed Mahboob Musabih, Director of Dubai Customs, said, "This is a milestone agreement in strengthening ties and promoting trade between the GCC countries and Singapore. We in Dubai Customs are committed to enhancing bilateral trade between the UAE and Singapore through exemption of customs duties at both ends. Starting January 1, 2015, Singaporean products are exempted of customs duties at all sea, air, and land ports in Dubai."

Dubai's trade with Singapore amounted to AED9.2bn (USD2.5bn) from January to September, 2014. This figure included AED5.2bn in imports, AED1.15bn in exports, AED2.86bn in re-exports.

Source: Tax News

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