Annual Value of Export and Trade Surplus or Deficit with European Union and Impact of EU's Carbon Border Adjustment Mechanism on Singapore's Exports
- Chua Kheng Wee Louis asked for the annual export value and trade balance with the EU for cement, iron and steel, aluminium, fertilisers, and electricity from 2016 to 2020, as well as the impact of the EU’s Carbon Border Adjustment Mechanism (CBAM) and Singapore’s plans in response.
- Gan Kim Yong explained that CBAM targets five sectors—cement, iron and steel, aluminium, fertilisers, and electricity—with a transitional reporting period from 2023 to 2025 and full implementation from 2026.
- He noted that the impact on Singapore’s domestic exports to the EU is limited, with affected products making up only 0.08% (about S$14 million) of the average S$19 billion annual domestic exports from 2016 to 2020.
- Gan emphasized that Singapore supports multilateral climate action and expects CBAM to be applied in a non-discriminatory, WTO-consistent manner, while engaging the EU to ensure trade relations remain strong.
- He added that the government will assist companies in using the EU-Singapore Free Trade Agreement and navigating CBAM requirements, while maintaining close dialogue with EU counterparts.