EU-Singapore FTA may not come into force in 2015: PM Lee

BERLIN: Prime Minister Lee Hsien Loong and German Chancellor Angela Merkel noted that Singapore and Germany have cooperated in many areas. And both sides agree on the benefits of a speedy ratification of the European Union-Singapore Free Trade Agreement.

This would allow the trade pact to come into force so businesses and consumers can enjoy the benefits of greater economic exchange. But after meeting with Ms Merkel on Tuesday (Feb 3), Mr Lee said this will take time, with Europe having its own internal processes to clear the agreement.

"The ratification process is on the European side. The text is still undergoing some legal scrubbing. Some parts are completed, some parts are not. Then you have to go through a long process, including voting at the European Parliament and including ratification by majority of the European member states," Mr Lee said at a news conference with the German Chancellor.

An issue is the agreement's investor-state dispute settlement provision, which lets companies take cross-border legal action against governments. This aspect of the trade pact has come under greater scrutiny.

Chancellor Merkel said Germany, as an exporting nation, has interest in the agreement's ratification, and will work towards it.

Aside from a common interest in trade, Mr Lee said Singapore and Germany both deal with issues like ageing populations and low birth rates. Mr Lee said that both countries are facing challenges in terms of radicalism and social integration as well.

"Our circumstances are not completely the same because Singapore's such a small country. It's one city. So when you talk about integration, you're talking about integration within one city. And it's something which is manageable. When you're talking about a country, of course there's a geographical diversity which makes it much more complicated."

Mr Lee said the radical Islamic State group is a threat to both countries, and noted that people from both nations have gone to Syria to fight with militants. He said there is quiet cooperation between the security agencies of both sides in terms of exchanging information and helping each other to minimise risks.

This is a special year for both Singapore and Germany, as they mark 50 years of diplomatic ties.

Source: CNA