WT/COMTD/RTA22/2  
WT/REG460/2  
 
15 September  2022 
(22-2211) Page: 1/3 
Committee on Trade and Development  
Dedicated Session on Regional Trade Agreements  
Committee on Regional Trade Agreements  Original: English  
 
 
FREE TRADE AGREEMENT BETWEEN THE GULF COOPERATION COUNCIL (GCC) AND 
SINGAPORE  (GOODS AND SERVICES)  
QUESTIONS AND REPLIES  
 The following communication, dated 13 September  2022, is being circulated at the request of 
the delegations of  the Kingdom of Bahrain, the State of Kuwait, Oman, Qatar, the Kingdom of Saudi 
Arabia, the United Arab Emirates and Singapore.  
 
 
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Question s from the delegation of Brazil  
 
1.1.  The numbers shown in the last line of Table 3.2  seem to indicate the percentage of 
total imports from Singapore that will be duty -free at the end of the  implementation 
period, not the percentage of tariff lines. If this is the case, the percentage of Oman's total 
imports that will be duty -free by the en d of the  implementation period indicated in the 
table should be  97.7 (and not 97.3). Could you please confirm if this understanding is 
correct?  
Joint response from the Parties  
 
 We agree with what was stated by Brazili an side inquiry.  
 
1.2.  Could the Gulf Cooperation Council countries please clarify what is the criteria used 
to classify products or goods as special in Annex 2, and whether or not they are subject 
to specific duty treatment? Some of the tables on pages 16 to 20 have notes indicating 
that cert ain special goods are not dutiable. Is this the case for all goods classified as 
special?  
Response from the GCC Member  States  
 
 The items designated as "special goods " in the GCC 's Unified Tariff Schedule cover products 
that are prohibited to be consumed b y Muslims under the "Islamic sharia law "; such as edible and 
non-edible products from pigs and alcoholic beverages or products containing alcoholic substances. 
While some GCC members allow the importation and consumption of such products, others do not 
allow the importation to their territories of such products. Therefore, the GCC members agreed to 
designate these products as "special " and to allow each individual GCC member to apply whatever 
it deemed appropriate regarding the importation and the duty rate s to be applied to these "special 
products ". 
 
1.3.  Regarding section 3.4.2, Brazil noted that there are no provisions on bilateral 
safeguard measures. Could the Parties please explain the reason for it? How do the Parties 
intend to deal with eventual surges in preferential imports that cause or threaten to  cause 
injury to the domestic industry?  
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  Joint response from the Parties  
 
 The text is a negotiated outcome determined by all GSFTA  Parties and was drafted with the 
intent to enhance our growing economic relations and facilitate trade between Parties.  
 Article 2.8 states that, "The rights and obligations of each of the GCC Member States and 
Singapore on anti -dumping and countervailing  duties, subsidies and safeguard measures shall be 
governed by Articles VI, XVI and XIX of the GATT 1994 respectively, and the Agreement on Subsidies 
and Countervailing Measures, the Agreement on Safeguards and the Agreement on Agriculture in 
Annex 1A to t he WTO Agreement. " 
 In the case of potential imports that cause or threaten to cause injury to the domestic industry, 
the WTO Agreement on Safeguards will be applied.  
 
1.4.  In regard to sections 3.4.2.1 and 3.4.3, Brazil noted that there are no WTO -plus 
provisi ons on global safeguards, antidumping and countervailing measures. Could the 
Parties please explain the reason for it?  
Joint response from the Parties  
 
 The relevant provisions on global safeguard, anti -dumping and countervailing measures are 
indicated in Article 2.8 of the agreement. The GCC -Singapore FTA is a comprehensive agreement 
covering areas such as trade in goods, trade in services, e -commerce, government procurement, 
customs, and cooperation. The text is a negotiated outcome determined by all GSFT A parties and 
was drafted with the intent to enhance economic relations and facilitate trade between parties.  
 
1.5.  As regards section 5.10.3, Brazil noted that there are no provisions on competition 
and consumer defense. Could the Parties please explain the re ason for it?  
Joint response from the Parties  
 
 The competition and consumer protection are applicable in accordance with the internal 
legislation and laws of each party. Articles 5.10 and 5.11 of  GSFTA Trade in Services chapter relate 
to the treatment of m onopolies and exclusive service suppliers as well as business practices that 
may constrain competition. Both are adapted from The WTO General Agreement on Trade in 
Services. In addition, if such a matter was to arise, the Parties may refer the matter to th e joint 
committee for consideration. It is also worth noting that the joint committee may establish Ad Hoc 
committees for special matters.  
 
Questions from Canada  
 
1.6.  Paragraph 4.15 of the factual presentation states that: Under the GATS, entry for 
intra -corporate transferees into Singapore is limited to a 3 -year period that may be 
extended for up to 2 additional years for a total term not to exceed 5 years, but under t he 
Agreement, Singapore limits the initial period to 2 years that may be extended for up to 
3 additional years each time for a total term not exceeding 8 years.  
a. Can Singapore please provide their rationale for introducing these changes to the 
duration of stay of intra -corporate transferees?  
b. Does this reflect changes to national legislation governing entry and stay of 
business peoples?  
Response from Singapore  
 
 Singapore 's commitments under different trade agreements can vary, as these are dependent 
on the negotiating dynamics and outcomes. The differences in commitments do not reflect a change 
in national legislation governing entry and stay of business people.  
 
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  1.7.  In Annex 5 of the RTA, the Schedule of Specific Commitments for Trade in Servi ces: 
The GCC Member States introduce several limitations on market access to the entry of the 
categories of business peoples. For example, each of the GCC Member States preserve 
proportional limitations on the number foreign employees for intra -corporate t ransferees.  
 Are these proportional limitations, as well as similar conditions maintained for the 
other categories of business persons, reflected in GCC Member States domestic regimes, 
or the GCC's Free Trade Agreements with other trading partners?  
 
Respon se from the GCC Member States  
 
 The GCC Member States preserve proportional limitations on market access to the entry of 
the categories of business  persons according to the domestic regimes of each GCC Member State. 
These limitations are also reflected in other GCC Free Trade Agreements.  
 
1.8.  Paragraph 5.23 of the WTO Secretariat Report and GCC and Singapore Regional Trade 
Agreement – Article 6.8 (Small and Medium Sized Enterprises)  
As per the above -mentioned article: The Parties reserve the right to apply a te n per cent 
(10%) price preference for the Small and Medium Sized Enterprises (SMEs) in their 
respective countries.  
 
 Do national legislations of the Contracting Parties allow foreign SMEs to be eligible 
for the 10 % price preference?  
 
Joint response from th e Parties  
 
 The referenced 10% price preference applies to local SMEs, as defined by GCC countries ' 
legislation. Some GCC countries allow SMEs with all or partial foreign ownership to be eligible for 
the price preference if they meet specified criteria.  
 
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