Singapore’s importance in global trade is immense. The Country is not only one of the major players in the region, but also a global trading power-house.
The country of Singapore has the highest trading to GDP ratio in the World, it stands at an astounding 407.9%. The reason for this is credited to Singapore’s trading culture and mentality, as well as the Country’s extremely well developed and advanced port facilities.
Singapore largely also has limited barriers to trade, this acts as an advocate to global trade.
The Country of Singapore has a relatively small local market, to counter this It is extremely well optimized and focused to concentrate its efforts to exports. The Country has an exporting as well as a trading mentality engraved within it.
Regional FTAs (free trade agreements) that Singapore is a part of:-
The ASEAN Free Trade Area (AFTA)
The ASEAN-Australia-New Zealand FTA (AANZFTA)
The ASEAN-China FTA (ACFTA)
The ASEAN-India FTA (AIFTA)
The ASEAN-Japan Comprehension Economic Partner (AJCEP)
The ASEAN-Korea FTA (AKFTA)
Singapore-Europe Free Trade Association FTA
The Gulf Cooperation Council-Singapore FTA (GSFTA – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates)
Trans-Pacific Strategic Economic Partnership (TPFTA – Brunei, Chile and New Zealand)
India-Singapore trade relations
The bilateral trading relationship between Singapore and India has generally been strong. Both Counties have signed the Comprehensive Economic Cooperation Agreement (CECA) in order to increase trade, investments and economic cooperation among each other.
Singapore’s participation in a plethora of Free trade agreements acts as an advocate of the Country’s trading mentality.