Update on Ratification of EU-Singapore Free Trade Agreement EUSFTA

Mr Louis Ng Kok Kwang asked the Minister for Trade and Industry (Trade) in light of the opinion issued by the Advocate General of the Court of Justice of the EU that the EU does not have exclusive competence to conclude the EU-Singapore Free Trade Agreement (EUSFTA), whether he can provide an update on how the relevant parties are working towards a swift ratification of the EUSFTA.

On 4 March 2015, the European Commission (Commission) sent the negotiated text of the EU-Singapore Free Trade Agreement (EUSFTA) to the European Court of Justice (ECJ) for a legal opinion to establish the Commission’s and EU Member States' (MS) areas of competence in the EUSFTA. The opinion would clarify which of the EUSFTA provisions fall within (i) the EU’s exclusive competence; or are (ii) shared competence between the EU and MS; or are (iii) within the MS’ exclusive competence.

Should the entire EUSFTA agreement be found to be under the EU's exclusive competence, it would only have to be approved by the Council of the EU (Council) and the European Parliament (EP). The agreement would enter into force thereafter on a mutually agreed date.

The Advocate General's preliminary opinion released on 21 December 2016 opined that the EUSFTA should be deemed a "mixed agreement" with areas of shared competence between the EU and MS. If the ECJ takes the same view, it would mean that the agreement has to be approved by the Council, the EP as well as the 38 national and regional Parliaments of all MS. However, the provisions in the agreement deemed to be under the EU's exclusive competence would be provisionally applied and take effect once the Council and the EP have approved. In comparison, provisions that are under shared competence or MS' exclusive competence would have to go through domestic ratification processes in all MS before they can take effect.

The ECJ's final opinion, which is deliberated by a full court of 28 Judges, is typically released three to five months after the Advocate General's preliminary opinion.

Singapore is actively working with the EU and MS to ensure that the EUSFTA can proceed with ratification as soon as the ECJ delivers its final opinion so that businesses can reap its benefits as soon as possible.