CPTPP partner: Singapore
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a trading block that represents 495 million people with a combined gross domestic product of CAD $13.5 trillion – a full 13.5% of global GDP. Through the CPTPP, Canada now has preferential access to some of the world’s most dynamic and fast-growing markets , which will strengthen Canadian businesses, grow the economy, and create more well-paying jobs for middle class Canadians.
The CPTPP entered into force for the first six countries to ratify the Agreement – Australia, Canada, Japan, Mexico, New Zealand, and Singapore – on December 30, 2018, and for Vietnam on January 14, 2019. For the remaining signatories (Brunei, Chile, Malaysia, and Peru), the CPTPP will enter into force 60 days after that country ratifies the Agreement.
Why Singapore matters
- Singapore is Canada’s largest source of foreign direct investment (FDI) among South-East Asian countries. Singapore is also Canada’s largest destination for FDI in South-East Asia.
- Canada and Singapore share science, technology and innovation interests, including improving access to venture capital, fostering public-private-academic collaboration, and supporting small and medium-sized enterprises.
- Singapore is the world's third largest financial centre after London and New York.
- The small island nation is a leader in research and development spending and is a model for innovation.
Canada-Singapore trade snapshot
Top Canadian Exports to Singapore (2015-2017 average, $CAD)
Canada's Top Exports to Singapore (2015-2017 average, $CAD)
- Total value of exports to Singapore: $1,400,000,000
- Aerospace: $421,000,000
- Industrial machinery: $198,000,000
- Electrical and electronic machinery and equipment: $165,000,000
- Metals and minerals: $155,000,000
- Agricultural products (fats and oils, soybeans): $109,000,000
Key facts and figures
- Canadian merchandise exports: $1.4 billion (2015-2017 average)
- Canadian merchandise imports: $937 million (2015-2017 average)
- Canadian services exports (2016): $749 million
- Canadian services imports (2016): $1.87 billion
Canada’s top merchandise imports from Singapore (2015-17 average)
- Electrical and electronic machinery and equipment: $296 million
- Medical goods and pharmaceuticals: $207 million
- Chemicals and plastics: $163 million
- Industrial machinery: $89 million
- Miscellaneous industrial products: $46 million
Canada’s imports of services from Singapore (2016)
- Transportation and government services: $1.5 billion
- Commercial services: $272 million
- Travel: $72 million
Canada’s top merchandise exports to Singapore (2015-2017 average)
- Aerospace: $421 million
- Industrial machinery: $198 million
- Electrical and electronic machinery and equipment: $165 million
- Metals and minerals: $155 million
- Agricultural products (fats and oils, soybeans): $109 million
Canada’s exports of services to Singapore (2016)
- Commercial services: $324 million
- Transportation and government services: $254 million
- Travel: $171 million
How the CPTPP helps Canada-Singapore trade and investment
- The CPTPP complements existing duty-free access to Singapore, eliminating tariffs for key Canadian exports, such as beer (tariffs of Singapore dollar S$16/litre were eliminated upon entry into force).
- In addition, Canadian exporters of fish and seafood, forest and value-added wood products, and industrial products continue to enjoy duty-free access to Singapore.
- The CPTPP allows Canadian companies to invest with greater confidence in Singapore, offering them protections from unfair and discriminatory treatment, as well as greater predictability and transparency.
- Through the CPTPP, service providers also benefit from improved access commitments in key sectors, such as:
- professional services (e.g. engineering and architectural services) and
- energy distribution services, including pipeline transport of fuels.
- New commitments on the temporary entry of business people make it easier for certain categories of Canadian business people to temporarily work in Singapore, including business visitors and investors.
- The CPTPP also provides robust and enforceable provisions on labour and environment.
Sectoral opportunities in Singapore
- Agriculture and processed food:
- With very little agricultural land and limited domestic food production, Singapore imports more than 90% of the food it needs to feed its residents.
- Opportunities exist for Canadian exporters of meat, fish and seafood, soybeans and pulses, and processed food, as well as indoor and vertical farming.
- Clean technology:
- Singapore identified clean technology as a key growth cluster and has attractive taxation schemes and additional incentives to support clean technology and other “urban strategies.”
- It is a clean energy and water hub for the Association of Southeast Asian Nations (ASEAN) and, increasingly, the Asia-Pacific region.
- Opportunities exist in the areas of water and wastewater, clean and renewable energy, fuel cells, green buildings, biomass, and waste-to-energy.
- Singapore has a world-class education system that provides opportunities for research and development collaboration, educational partnership and student recruitment.
- Information and communications technology (ICT):
- Singapore remains an important market for ICT companies looking to expand into the Asia-Pacific region.
- It is an important telecommunications hub and ranks as the most network-ready country in Asia, having some of the world's most advanced ICT infrastructure.
- Companies are drawn to Singapore because of its robust intellectual property regime, good logistics connectivity and easy access to global talent.
- Singapore is a global aviation hub and a regional leader in maintenance, repair and overhaul, and research and development.
- Singapore’s Changi Airport is in the midst of a major expansion that will allow it to double its capacity by 2030, and has launched a $50-million program to turn the airport into a “living lab.”
- Opportunities include the supply of parts and components, avionics expertise, education and training services, and airport-related equipment and technologies.
- Financial services:
- Singapore is home to over 1,200 financial institutions, including most major Canadian banks and some Canadian insurance companies and pension funds.
- The city-state is recognized as a premier wealth management hub and is positioning itself as a financial technology hub.
- Opportunities exist for Canadian companies interested in raising funds or showcasing their technologies and solutions.
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