* Offensive interest (premium segment) * No defensive sensitivity * No local production, current or future * No competitive threat by other SGP FTAs

Transcription

1 1-GENERAL General * Informal trade barriers by government-linked companies, notably regulatory * Different MS treated differently * Government linked companies (GLC) protect the market through informal trade barriers. This should be eliminated. GLC are draining the talent pool and constutute unfair competition to private industry. Although Singapore is a Free Trade Country, numerous barriers have been erected by Regulatory bodies. These should be eliminated. * Singapore Government treating individual EU countries differently because of the absence of an FTA * Competitive disadvantage due to US-SGP FTA * The main four types of goods traded between these two blocks are: Mineral fuels, lubricants and related materials Machinery and transport equipment Miscellaneous manufactured articles Chemicals Singapore is the EU s seventeenth trade partner and the EU is Singapore s second major trade partners. * Singapore's economy remains one of the most open, and thus competitive, in the world. * Singapore's import regime has relatively few border measures. * Foreign investment wecome * Its total merchandise trade is nearly four times its GDP and inflows of FDI are substantial, accounting for the equivalent of one-sixth of their GDP in * Singapore's applied Most-Favoured Nation (MFN) tariff is zero, apart from six tariff lines for alcoholic beverages which are subject to specific rates. Moreover, it does not have products in the Association of Southeast Asian Nations (ASEAN) sensitive or highly sensitive lists or in the general exclusion list. Singapore has bound some 70% of its tariff lines at an average tariff rate of 6.9%. Despite this, the gap between applied and bound MFN rates and the absence of bindings for 30.4% of tariff lines could create a degree of unpredictability for traders in the sense that there is scope for the authorities to raise tariffs; however, applied tariffs have not been increased in the past years. * Foreign investment has traditionally been welcomed in Singapore and has accounted for a significant share of total investment in the economy. Singapore has used it to evolve into a base for multinational companies to engage in high-end manufacturing and product development, and to coordinate regional procurement, production, marketing, and distribution oper * Offensive interest (premium segment) * No defensive sensitivity * No local production, current or future * No competitive threat by other SGP FTAs Singapore is a relatively small market, but is growing especially in the premium segments in which German /European car manufacturers do have a certain market share. For the other segments, Singapore remains a small market. EU exports to Singapore were in 2008.Also for suppliers Singapore is a relatively small market. From today s perspective, there are no defensive interests as no automotive production is located in Singapore and exports of cars to EU were 1,605 in Production facilities already exist/ will be created in other ASEAN countries. The conditions for production in Singapore (small market) and the limited market access on cars from one ASEAN country to an other, encourages EU manufacturers to chose larger ASEAN countries to set up assembly plants. Mechanical Engineering * Value as a precedent * Need for specific provisions for each ASEAN country (i) Need for powerful DS procedure (precedent value) (ii) 20% excise tax (iii) Auctioned certificates * No Market Access problems * No offensive/ defensive interests * Relatively low trade flows * Trade surplus * Exports likely to stay < 300 mn * It is our industry s interest that Singapore becomes the first ASEAN country with whom EU will conclude an FTA. Though automotive industry is not a major issue in the EU Singapore relations, due to low trade volumes, our industry hope that this FTA should serve as a template for the FTA negotiations with other ASEAN states when negotiating e.g. with Thailand or Malaysia, that count for important automotive production * On the other hand, Singapore is very different from the other ASEAN markets, mainly because it has no automobile production. Therefore, in many areas, it will not be possible to use the Singapore agreement as a template, but special provisions for each country will be necessary. (i) The FTA should foresee a strong and powerful Dispute Settlement as well as a mediation mechanism to tackle existing and newly erected NTBs. This will be important for future agreements with other ASEAN members (where a number of harmful NTBs exist) and should therefore already be included in the EU-Singapore FTA. (ii) In Singapore, automobiles face an excise tax of 20% and a series of other domestic taxes. (iii) In addition, Singapore applies a system of certificates for the sale/purchase of vehicles. For a defined period of time, only a certain number of certificates qualifying for the sale/purchase of a vehicle are being auctioned. The price for these certificates is very volatile e.g., in 2009, it fluctuated between and Singapore Dollar (the average price was to Singapore Dollar). Though this practice is not of discriminatory nature, it increases the overall price for the purchase of a car significantly. We would therefore appreciate if this issue could be addressed should the opportunity arise. Customs duty within chapter 84 of the HS-code is 0% for nearly all products. Furthermore, to our knowledge there are no special certification issues or other technical requirements that would prevent European engineering products from entering the market. * The Trade Flows between EU and Singapore in are relatively small if compared to other Third Markets. * In 2008 EU exported to Singapore for the value of 204, 7 million being 86,6 million Textiles and 118,1 million Clothing. As for Imports of for the same year they reached 19, 2 million being 8,4 million Textile and 10,8 million on Clothing. In 2009 the tendency(until 0ctober) was for a decreased in Exports of 13,8% as compared to Oct. 08 and also for a reduction in Imports of 32,1%. Overal this means the EU had a trade surplus with Singapore of around 185,5 million in 2008 and even if in 2009 there will be a reduction it is clear the Trade surplus will be maintained since the decreased in Imports was superior to Exports. * From the trade evolution in recent years we see that EU Exports are more or less around the level of 200 million. Considering the economic situation and the size of market we don t expect to go much further than 300 million of Exports in the coming years and this on a positive outlook.

2 1-GENERAL General * Informal trade barriers by government-linked companies, notably regulatory * Different MS treated differently * Government linked companies (GLC) protect the market through informal trade barriers. This should be eliminated. GLC are draining the talent pool and constutute unfair competition to private industry. Although Singapore is a Free Trade Country, numerous barriers have been erected by Regulatory bodies. These should be eliminated. * Singapore Government treating individual EU countries differently because of the absence of an FTA * Competitive disadvantage due to US-SGP FTA * The main four types of goods traded between these two blocks are: Mineral fuels, lubricants and related materials Machinery and transport equipment Miscellaneous manufactured articles Chemicals Singapore is the EU s seventeenth trade partner and the EU is Singapore s second major trade partners. * Singapore's economy remains one of the most open, and thus competitive, in the world. * Singapore's import regime has relatively few border measures. * Foreign investment wecome * Its total merchandise trade is nearly four times its GDP and inflows of FDI are substantial, accounting for the equivalent of one-sixth of their GDP in * Singapore's applied Most-Favoured Nation (MFN) tariff is zero, apart from six tariff lines for alcoholic beverages which are subject to specific rates. Moreover, it does not have products in the Association of Southeast Asian Nations (ASEAN) sensitive or highly sensitive lists or in the general exclusion list. Singapore has bound some 70% of its tariff lines at an average tariff rate of 6.9%. Despite this, the gap between applied and bound MFN rates and the absence of bindings for 30.4% of tariff lines could create a degree of unpredictability for traders in the sense that there is scope for the authorities to raise tariffs; however, applied tariffs have not been increased in the past years. * Foreign investment has traditionally been welcomed in Singapore and has accounted for a significant share of total investment in the economy. Singapore has used it to evolve into a base for multinational companies to engage in high-end manufacturing and product development, and to coordinate regional procurement, production, marketing, and distribution ope * Offensive interest (premium segment) * No defensive sensitivity * No local production, current or future * No competitive threat by other SGP FTAs Singapore is a relatively small market, but is growing especially in the premium segments in which German /European car manufacturers do have a certain market share. For the other segments, Singapore remains a small market. EU exports to Singapore were in 2008.Also for suppliers Singapore is a relatively small market. From today s perspective, there are no defensive interests as no automotive production is located in Singapore and exports of cars to EU were 1,605 in Production facilities already exist/ will be created in other ASEAN countries. The conditions for production in Singapore (small market) and the limited market access on cars from one ASEAN country to an other, encourages EU manufacturers to chose larger ASEAN countries to set up assembly plants. Mechanical Engineering * Value as a precedent * Need for specific provisions for each ASEAN country (i) Need for powerful DS procedure (precedent value) (ii) 20% excise tax (iii) Auctioned certificates * No Market Access problems * No offensive/ defensive interests * Relatively low trade flows * Trade surplus * Exports likely to stay < 300 mn * It is our industry s interest that Singapore becomes the first ASEAN country with whom EU will conclude an FTA. Though automotive industry is not a major issue in the EU Singapore relations, due to low trade volumes, our industry hope that this FTA should serve as a template for the FTA negotiations with other ASEAN states when negotiating e.g. with Thailand or Malaysia, that count for important automotive production * On the other hand, Singapore is very different from the other ASEAN markets, mainly because it has no automobile production. Therefore, in many areas, it will not be possible to use the Singapore agreement as a template, but special provisions for each country will be necessary. (i) The FTA should foresee a strong and powerful Dispute Settlement as well as a mediation mechanism to tackle existing and newly erected NTBs. This will be important for future agreements with other ASEAN members (where a number of harmful NTBs exist) and should therefore already be included in the EU-Singapore FTA. (ii) In Singapore, automobiles face an excise tax of 20% and a series of other domestic taxes. (iii) In addition, Singapore applies a system of certificates for the sale/purchase of vehicles. For a defined period of time, only a certain number of certificates qualifying for the sale/purchase of a vehicle are being auctioned. The price for these certificates is very volatile e.g., in 2009, it fluctuated between and Singapore Dollar (the average price was to Singapore Dollar). Though this practice is not of discriminatory nature, it increases the overall price for the purchase of a car significantly. We would therefore appreciate if this issue could be addressed should the opportunity arise. Customs duty within chapter 84 of the HS-code is 0% for nearly all products. Furthermore, to our knowledge there are no special certification issues or other technical requirements that would prevent European engineering products from entering the market. * The Trade Flows between EU and Singapore in are relatively small if compared to other Third Markets. * In 2008 EU exported to Singapore for the value of 204, 7 million being 86,6 million Textiles and 118,1 million Clothing. As for Imports of for the same year they reached 19, 2 million being 8,4 million Textile and 10,8 million on Clothing. In 2009 the tendency(until 0ctober) was for a decreased in Exports of 13,8% as compared to Oct. 08 and also for a reduction in Imports of 32,1%. Overal this means the EU had a trade surplus with Singapore of around 185,5 million in 2008 and even if in 2009 there will be a reduction it is clear the Trade surplus will be maintained since the decreased in Imports was superior to Exports. * From the trade evolution in recent years we see that EU Exports are more or less around the level of 200 million. Considering the economic situation and the size of market we don t expect to go much further than 300 million of Exports in the coming years and this on a positive outlook.

3 * Transhipment problems For the moment the level of Imports from Singapore is relatively small since this country has almost zero production of its own. The existance of a FTA may encourage transhipment from countries in the area. Energy * Witholding tax may cause administrative burden the Singapore "withholding Tax 15%" on services provided by foreign companies may be a slightly complicated procedure for smaller companies. The buyer deducts the tax and the seller gets the money back from his domestic tax. This is common procedure not only for Singapore but for many countries. In our understanding it may cause significant administrative burden especially for smaller companies. 4-Discrimination in regulation/ taxation General * Import duty for transhipment All goods imported into Singapore need to be type tested and certified. Import duty into ASEAN still 90%, Import duty for transshipments 0-3% but corruption and red tape increase costs. * Lack of transparency Although Singapore is regarded as Duty-Free, the devil lies in the detail. Once you go through the actual procedure to import goods, the Statutory Boards all have their own regulations that can increase costs, delay imports or increase red tape. * General discrimination problems * No problem There is no discrimination between domestically produced goods and imported goods into Singapore as Singapore has no real auto production. Moreover, there is no discrimination in Singapore between EU-products and products produced in Asia. * COEs not discriminatory * Punitive diesel tax * We feel that we are not discriminated by trade barriers as obstacles (like COE*) are not targeted to protect local car production (not existing) but to regulate traffic/car population. (*The Certificate of Entitlement (COE), instituted by the government of Singapore, is a program designed to limit car ownership, and hence, the number of vehicles on the country's roads. This system, in effect, requires residents of Singapore to bid for the right to buy a motor vehicle, with the number of certificates deliberately restricted.) * However, we would like to raise attention to the diesel problem as we are facing punitive diesel tax of $1.25 per cc (engine capacity) whereas hybrid and CNG enjoy 40% green vehicle rebate. 5-TBT General * Problems internal communication Although Singapore's Government bodies are interlinked, communication is not always automatic. * TBT issues * Poor alignment of Singapore rules or standards to international standards; * discriminatory treatment, for example in the areas of testing, certification or market surveillance requirements; * excessive or discriminatory labelling requirements; * burdensome, disproportionate or unnecessary standards, regulations, conformity assessment procedures or documentation requirements; * Rejections of applications should be explained by the autorities and alternatives explored. * Good public comment procedures Generally, the regulators will invite comments from stakeholders before implementing technical regulations. These could include testing/certification bodies, suppliers, traders, manufacturer associations; the mechanism is usually done by organising dialogue sessions and meetings. For the drafting of Singapore Standards, there is a 3-month period for public comment. * Different regulators * International standards * UN-ECE * TBTs not a problem * SGP has public comment procedures administered and managed by the Land Transport Authorities (LTA). * Different products are controlled by different regulators in Singapore eg consumer products safety is regulated by SPRING, fire-protection products by Fire Safety and Shelter Department, energy-efficiency by the National Environment Agency, medical devices and pharmaceutical products by the Health Science Authority, building and construction materials by Building Control Authority etc. * Generally, international standards like IEC and ISO are adopted. The trend is to align Singapore standards to International standards. Around 80% of Singapore s standards are aligned with international standards. All technical products meeting EU/US/Japan standards are generally accepted in Singapore. GENERAL REMARKS: For the EU automobile industry, the acceptance of UN ECE standards is of utmost importance. Singapore, although no member of UN ECE 58 and 98 agreement, does accept to a certain extent EG/ECE. This is not necessarily the case for the other ASEAN members, though both Malaysia and Thailand are contracting parties since Here, in some cases, we do see room for improvement. Our industry favours that Singapore recognizes the EU type approval homologation permitting EU vehicles to enter Singapore without any further domestic homologation requests, and the membership in the 58 and 98 agreements. We are happy to give more specific recommendations for some of the ASEAN countries as soon as negotiations will be launched with them. * Excessive or discriminatory labelling requirements Energy * Type approval systems and permitting processses within the investment projects * Poor alignment of Singapore rules or standards to international standards should be harmonized with the EU. Leather 1. Outruling & Elimination of export restrictions or export duties or taxes on raw materials (HS ex ) 2. Harmonisation of labelling and marking requirements 3. Mutual recognition of Testing & Certification 4. Adoption of ISO Standards for all type of technical requirements 6-SPS General * Licensing procedures for SPS products folllow the US or AUS FTA Certificates in those countries are automatically accepted in Singapore. However, for SPS products from EU, special procedures (very costly and time consuming) are in force.

4 * SPS provisions requested Invoke MFN clause in EU-SGP FTA Transparency (better notification provisions on SPS import rules including predictability and stability of SPS rules) Equivalence (system of recognition) Pre-listing of exporting establishments Certification procedures Verification procedures Information exchange Notification and consultation SERVICES/ INVESTMENT Energy * Interest to export potential feedstocks for fuel production (animal fats, vegetable oils of different type, etc). * Animal fats (waste from meat industry and farming); vegetable oils of different type (rape seed oil; soybean oil, palm oil); any other type of oils suitable for renewable diesel production. it is important to be able to import as wide variety as possible of differenet potential feedstocks for fuel production. Leather * SGP likely to submit leather products to animal helth requirements hindrance of various types in exports of leather (actually not an agricultural product, see above) during the period of the BSE scare * Export of Gelatine and collagen + organic fertilisers made of remains of hides and skins * Interest in specific rules Specific rules applying to the trade in HS chapter 41 for trade (export restrictions/taxes) and veterinary certification of products (maximal requirements) General * Main barrier = work permits As Foreigners in Singapore, you want to lie low and not go against the grain. * Restrictions on foreign law firms On services, there are restrictions on foreign law firms and foreign lawyers practising in Singapore but there are no restrictions in any arbitration work and in matters governed by foreign law. * Interest for MRA Academic degrees, Industrial standards work qualifications, education Certification processes * Sectors where EU companies in disadvantage Banking, Telecom, domestic appliances, industry standards, food * Registration of products can be lengthy * Restrictions on inward foreign investment... * Notably in government-linked companies * Restrictions on inward foreign investment are limited to broadcasting, the domestic news media, retail banking, legal and other professional services, and property ownership. * Foreign investment in some of Singapore's government-linked companies, depending on the sectors they operate in, is also subject to restrictions. For example, the aggregate foreign shareholding limit in Port of Singapore Authority (PSA) Corporation, which manages Singapore's ports, is 49%. Foreign ownership restrictions may also apply to Singapore designated airlines depending on the requirements of Singapore's bilateral and multilateral air services agreements. * Regarding taxation, desirable to have legally binding agreement on def of "permanent establishment" (because of precedent value) * Within the context of the model character for other ASEAN countries: Regarding taxation it is desirable to have a legally binding agreement on the definition of permanent establishment. We suggest to put in a phrase referring to the OECD Model Convention (less desirable UN Model Convention and least desirable ASEAN Model Convention) => this issue is more prominent with Thailand, hence it might be useful to include it with Singapore (no issue there) in order to have a better stand later on. * No problem Our industry finds that there are no issues with regard to running the local business, recruitment of staff etc. Singapore is very pro-business oriented and provides a level-playing field for businesses. In this regard, transparency and efficiency matches, and in some cases exceeds, that of some developed economies. Energy * Interest for MRA We support harmonizing type approvals between EU and Singapore and also permitting process with during the investment projects. REGULATORY I-Transparency General * No adequate complaint possibilities You dont want to complain to the Singapore Government Complaints are not made officially and therefore not enterntained officially * Info publicly available There are contacts provided in websites. Alternatively, clients can approach the International Enterprise (IE) Singapore which the primary body for trade facilitation in Singapore * No problem II-IPR General * IP is influenced by the US-SIN FTA but this was used by the US in their fight against terror and does not really address the needs of Singapore or ASEAN Singapore is "Law and Order". That is all they have, so they need to continue maintaining their position as the clean Hub of ASEAN * Non adherence to the Rome Convention The main outstanding issue here is the non-adherence of Singapore to the Rome Convention and the active implementation in practice. To recall, the Rome Convention signed in 1961 by 88 contracting parties secures the protection of Performers, Producers of Phonograms and Broadcasts and/or Broadcasting Organizations.

5 * EU patents easily recognised only if submitted EN => change to system that accepts (1) By Singaporean law, European patents are only easily recognized if they were submitted in English. In contrast this does EP recognition. not hold true for other Community languages. This requires additional resources and time as not all esp. technical complex * Contribution from SGP side patents have to be first registered in SGP patents are translated. Here a change towards a regime which automatically accepts EP recognition and with only a qualified translation to English if necessary will ease the administrative burden considerably (as a side note, Japanese patents are recognized without a mandatory explanation, hence this puts the majority of the Community a some kind of disadvantage). (2) In today s world, inventions are more and more the result of intensive team work or research cooperation. Singaporean patent law requires unlike European law but similar to the US laws that if there has been a contribution from a Singaporean side, patents have first to be registered in Singapore. Even more stringent than the US law, this extends even to case where a Singaporean national is conducting research outside of Singapore e.g. in a R&D centre located within the EU. This can create problems in the patent registration process. * IPR key interest * No particular complaint, however... * Singapore is a hub for counterfeited products => request for: (i) legal basis to seize and destroy fake goods; (ii) an ASEAN-wide registration system; (iii) improving the level of knowledge and skills. * Though we are satisfied with the law and the regulations, we would appreciate better customs controls of potentially fake products especially in the port of Singapore: We know that Singapore often is used as a turntable for fake products. Unfortunately, customs does not seize goods in transit. There are no problems with Singapore s law and regulations Singapore deals with IPR issues far more seriously than many other Asian countries. However, we do see weaknesses with regard to the control and seizure of fake products in transit. A legal basis to seize and destroy fake goods must be existent and implemented. An ASEAN-wide registration system similar to that in the EU would be of great value. One additional area of improvement could be to work on improving the level of knowledge and skills. Currently, it appears to be quite rudimentary, and as such, open to some discretion. Chemicals Leather * Better control of goods in transit Goods in transit must be controlled effectively. A legal basis to seize and destroy fake goods must be existent and implemented. An ASEAN-wide registration system similar to that in the EU would be of great value. * Patent prosecution burdened with too many deadlines * In Singapore, patent prosecution is burdened with too many deadlines to respond to various search und examination * Requirements for a "certified copy" should be waived options. For example, often a foreign corresponding patent to rely on has not been issued yet. This system should be * IPR priority (trademarks, patents, enforcement) simplified. * Patent can be requested on basis of a granted European or US corresponding patent. As of today, a "certified copy" of said patent is necessary. However, the EPO in accordance with Rule 74 EPC provides only a certificate, not a specification of Rule 73 EPC. The Specification of Rule 73 EPC is publicly available online on the EPO-website. Thus, the requirement for a "certified copy" should be waived. * Enforcement problems Being Singapore a trade platform in the region the question of enforcement becomes critical since most of the IPR violations * Protection of trademarks & design a priority are done in a Third Country but the goods are traded in Singapore. * Singapore is a hub for counterfeited leathergoods and shoes III- Competition/ State aid General * Ca 40% of Singapore industry is government owned or Government linked. The big boys usually do business among themselves or with Government. Certain aid programmes are only accessible to Singapore firms, some grant programmes are structured to be handled by Statutary Boards only. * No problem * Subsidies and state aid usually does not play a major role when making such investments. Factors such as market volume and growth are much more important. * MNCs and FOREIGN INVESTORS ARE VERY MUCH WELCOMED WITH DIVERSE INCENTIVES. Chemical * No problem IV- GP General * Due to the absence of an FTA, EU comapnies suffer disadvantages vis-a-vis their US competitors and also vis-a-vis the local suppliers * Priorities Transparency in the tendering process Easy access to the qualification system Use of international rather than local technical standards Effective review mechanisms including the possibility to obtain interim measures A single point of entry giving an overview of, and access to, all relevant procurement opportunities in a given jurisdiction National and MFN treatment * No problem * Not being a priority for our industry at this stage, tenders and public procurement procedures seem to be transparent * Tender replies unknown, except for Ministry of Defence * There is an E-PORTAL for all Singapore Government procurement Leather * No consideration of social and/or environmental requirements for leather products like boots or gloves or jackets * Leather clothing, gloves, shoes, boots for schoos, police, military