EU – Singapore trade & investment booktlet
With 27 countries, nearly 500 million people and the largest GDP in the world, the EU is of critical and increasing importance to Singapore and ASEAN, even more so in a slowing world economic environment.
The EU and ASEAN are both groupings of like-minded countries that have in their own ways embarked on regional economic integration and close cooperation in various fields. Although the two regions have distinct features and very different starting points, they have both been successful in dismantling trade barriers and building lasting mechanisms for policy coordination.
ASEAN is a group of heterogeneous countries, most of which are still classified as developing countries. However, Singapore has grown to become the regions most prosperous country, largely based on its position as a trading hub closely connected to global commerce. Its success as a trading nation is followed by its much larger neighbours, who have also shown a growing ability to reap the benefits of globalisation. The ASEAN Charter has the potential to offer the region increasing momentum by boosting trade and reinforcing economic cooperation.
The EU is ASEANs 2nd largest overall trading partner after China and ahead of Japan and the United States. In fact, the EU accounts for 11.8% of ASEANs total external trade. In 2007, overall merchandise trade between ASEAN and the EU amounted to 140.4 billion.
The EU is Singapores 2nd largest trading partner after Malaysia. According to statistics in Singapore, the EU accounts for 11.5% of Singapores total external trade, purchasing 10.7% of Singapores exports and providing 12.4% of its imports. These figures put it ahead of China, the United States and other ASEAN members (except Malaysia). Singapore is also the EUs number one trading partner in ASEAN. Moreover, the EU is by far the most significant source of Foreign Direct Investment (FDI) in Singapore.
This privileged relationship has an even brighter future with the prospect of a Free Trade Agreement (FTA) between the EU and ASEAN.
For further analysis of the EU-ASEAN and EU-Singapore trade relations, please download the European Union delegation to Singapore trade & investment booklet.
