WORLD TRADE  
ORGANIZATION  WT/REG148/6 
26 April 2006 
 
 (06-1954) 
Committee on Regional Trade Agreements Original:   English 
  
  
  FREE TRADE AGREEMENT BETWEEN  
THE EFTA STATES AND SINGAPORE 
 
Questions and Replies
 
 
 
 The following communication, dated 18 April 2006,  is being circulated at the request of the 
Delegations of the EFTA States  (Iceland, Liechte nstein, Norway and Switzerland) and Singapore. 
  This document reproduces the questions addressed  to the Parties and the responses submitted. 
The questions and replies set out below are or ganized in accordance with document WT/REG148/3 
and WT/REG148/4.  
_______________ 
 
GOODS ASPECTS
 
 
       
I. BACKGROUND INFORMATION ON THE AGREEMENT 
3. Scope 
 
1. Could the Parties please provide data to th is Committee on the number of tariff lines 
covered in this Agreement, including the Agri cultural Agreements. Specifically, could the 
parties provide the number of tariff lines fully liberalized, the number of tariff lines covered in 
each agricultural agreement, and the total numb er of tariff lines in each Party’s schedule. 
 See Annex. 
 2. Article 2 of Annex III allows for the imposition of fixed duties on processed agricultural 
products. 
 - How many tariff lines are subject to the possibility of these specific duties? 
 
 Article 2 of Annex III foresees the possibility,  for the Parties, to levy fixed duties on 
processed agricultural products. This in order to ta ke account of differences in the cost of the 
agricultural raw materials  incor porated into the products. The number of tariff lines subject to the 
possibility of these duties  vary between the EFTA Countries. The Parties have indicated for each 
product, in the respective country Tables to Anne x III , if a fixed duty can be levied or not: 
  
 * = Fixed duty in accordance with Article 2.1 (a)   
 FREE = No fixed duty in accordance with Article 2.1 (a) applied   The tables are accessible on the Internet: www.efta.int
  
 WT/REG148/6 
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 - Has any review of the products c overed under Annex III taken place, as 
provided for in Article 6 of Annex III? 
 
 The review stipulated under this Article took place in conjunction with the first review of the 
ESFTA in Singapore on 26 May 2004.  The Join t Committee exchanged views on expanding the 
scope and coverage of the commitments in Anne x III. Singapore submitted a list of agricultural 
products to the EFTA asking for improved market a ccess. This list contained processed agricultural 
products which would fall under Annex III. Norw ay presented its revised offer on processed 
agricultural goods, which was intended to bring thei r commitments to Singapore up to the same level 
as their commitments to the EU.  
 
4. Trade Data 
 
3. In response to an earlier question, the Pa rties indicated that “An overview of the 
bilateral trade in agriculture will be established and distributed at a later stage 
(WT/REG/148/5). Has the overview been established? If so, when will it be (was it) distributed? 
 See Annex. 
 
4. We understand 96 percent of agricultural trad e is covered – please provide percentage 
of trade covered for the individual EFTA members? 
 See Annex. 
  
II. TRADE PROVISIONS 
3. Rules Of Origin 
5. Article 5 provides for review by the Parties of  the rules of origin every two years after 
entry into force of the Agreement. Since two years have elapsed since the entry into force of the 
Agreement, has such a review taken place? If so, wh at actions have been taken, or are planned? 
 Article 7.3 of the agreement provides for a revi ew of rules of origin (Annex I) two years after 
the entry into force of this Agreement. At the first ESFTA review in May 2004, a sub-committee on 
Customs and Origin Matters met and had a di scussion on various list rules of the Protocol. 
 4. Standards  6. Do the TBT provisions of this Agreement pr ovide preferential access for goods from the 
other Party(ies) and/or do they intend to  raise the bar for all trading partners? 
 TBT matters in this Agreement are governed  by the WTO Agreement on Technical Barriers 
to Trade.   Furthermore, the Agreement foresees that coope ration between the parties on this issue shall 
be strengthened. Such a cooperation is aimed at increasing the mutual understanding, but doesn’t, as 
such, provide preferential access for goods from the othe r Partie(es) nor does it intend to raise the bar 
for all trading partners. 
  WT/REG148/6 
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  5. Safeguards 
7. Have any emergency safeguard actions, on either industrial or agricultural goods, been 
taken under Article 17? If so, could the Parties pl ease provide a list of the products involved and 
safeguard measures imposed? 
 No safeguard measures have been applied between the Parties.   
 
8. What are the significant differences between the safeguards chapter and the WTO 
Safeguards Agreement? 
 The provisions on safeguard measures are found in Article 17 of the Agreement (Emergency 
Action on Imports of Particular Products). They ar e built upon the WTO Safeguards Agreement, with 
a few significant differences including: 
 
(a) Article 17 only applies to Singapore and the EFTA States. The measures are applied 
only in their bilateral trade, and the increase in imports must be a result of the reduction or elimination of a customs duty under the Agreement. 
(b) The measure taken can only consist of an in crease in the tariff rates, and not other 
types of measures such as quotas. 
(c) The maximum time period that a safeguard measure may remain in place is 3 years, 
as compared to 8 years under the WTO Safeguards Agreement. 
(d) The time period for applying a safeguard m easure on the same good is 5 years since 
the expiry of the measure, which is longer than under the WTO Safeguards 
Agreement. 
(e) In the event that a mutually acceptable comp ensation is not agreed upon, the affected 
Party is not required to wait for 3 years ( as stated in the WTO Safeguards Agreement) 
before taking any compensatory action. 
8. Sector-Specific Provisions 
 8.1 Agriculture 
 
9. In Article 5 of each of the Agricultural Agreements, the Parties “d eclare their readiness 
to discuss, in the future, expanding the range of market access concessions on agricultural 
products”. Have any such expansions occurred ? Is there a schedule for any such discussions? 
 At the first ESFTA review on 26 May 2004, Si ngapore requested EFTA to improve market 
access on a list of agricultural products. The EFTA states agreed to consider Singapore’s request and 
would revert to Singapore in due time.   Members can discuss the possibility of expanding ma rket access on agricultural products at the joint 
EFTA-Singapore Meeting held biannually. The next meeting is due in 2006.  
 10. Has there been any review of the bilateral agricultural agreements or negotiations to 
conclude one EFTA wide agricultural agreement? 
 The review of the main Agreement and the b ilateral agricultural agre ements is conducted in 
the Joint Committee meeting held once every two year s. In the first Joint Committee meeting, held on 
26 May 2004, matters concerning the sc ope and coverage of th e bilateral agricultural agreements were WT/REG148/6 
Page 4  
 
  discussed amongst other issues. Singapore requested improved market access for agricultural products 
Norway presented its revised offer on processed agri culture goods, which was intended to bring their 
commitments to Singapore up to the same level as th eir commitments to the EU. These issues will be 
discussed at the next Joint Committee in 2006.  
 In view of the differences in the agricultural policies of the EFTA states, there are no plans at 
the present to conclude one EFTA wide agricultural agreement.     
 
SERVICES ASPECTS
 
 
 
II. PROVISIONS AFFECTING TRADE IN SERVICES 
11. The Agreement requires parties to review thei r schedules of commitments at least every 
two years. Given that this agreement entered into  force on January 1, 2003, has the first of these 
reviews taken place? If so, what were the results? 
 The first ESFTA review took place in Singapore on 26 May 2004. The  Parties re-examined 
the scope and coverage of their respective schedul e of commitments and it was agreed that these 
would be discussed in further detail at the next ESFTA review. 
 
12. In its schedule of commitments Singapore stat es that within six months of the effective 
date of the Agreement, it will consider schedul ing commitments for public mobile broadband 
multimedia services. Has this occurred? Wh en will the text reflect these changes? 
 No it hasn’t occurred yet. Singapore has consid ered but thus far not scheduled commitments 
for public mobile broadband multimedia services. 
 
13. With regard to Singapore’s mode 3 mark et access commitments on acceptance of 
deposits, were all of the 20 available licen ses granted by December 2003? What were the 
admission and eligibility criteria? 
 Yes, the 20 wholesale bank licences were granted by Dec 2003. 
 
 On the admission and eligibility criteria, app licants are assessed on the following factors: 
 
(a) the track record, international standing , reputation and financial soundness of the 
applicant and its parent institution or major shareholders.  
(b) the strength of the home country supervision and the willingness and ability of the 
home supervisory authority to  cooperate with MAS.  
(c) whether the applicant has a well-developed st rategy in banking or financial services, 
supported by business plans which include a detailed assessment of the continued 
economic viability of the business; and 
(d) whether the applicant has risk manage ment systems and processes commensurate 
with the size and complexity of its business   WT/REG148/6 
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  ANNEX  
  
EFTA-Singapore FTA trade coverage in 2004 
(in USD) 
  EFTA Iceland Norway CH-FL 
Imports  (HS 1-24)  3,242,199 91,544 984,244 2,166,411 
DF  2,007,537 91,544 614,896 1,301,097 
RD  809,606   205,382 604,224 
NC  425,057   163,966 261,091 
Imports  (HS 25-97)  383,202,103 4,603,409 143,407,045 235,191,649 
DF  382,461,233 4,603,409 142,666,175 235,191,649 
RD          
NC  740,870   740,870   
Imports  (HS 1-97)  386,444,302 4,694,953 144,391,289 237,358,060 
DF  384,468,770 4,694,953 143,281,071 236,492,746 
RD  809,606   205,382 604,224 
NC  1,165,927   904,836 261,091 
Exports  (HS 1-24)  32,609,303 167,687 13,347,388 19,094,228 
DF  32,609,303 167,687 13,347,388 19,094,228 
RD          
NC          
Exports  (HS 25-97)  1,544,254,416 360,386 358,225,645 1,185,668,385 
DF  1,532,735,010 358,303 346,708,322 1,185,668,385 
RD          
NC  11,519,406 2,083 11,517,323   
Exports  (HS 1-97)  1,576,863,719 528,073 371,573,033 1,204,762,613 
DF  1,565,344,313 525,990 360,055,710 1,204,762,613 
RD          
NC  11,519,406 2,083 11,517,323   
Notes : 
DF - Duty free 
RD - Reduced duties 
Source : World Trade Atlas 
Agriculture: includes processed agricultural products. The c oncessions are negotiated on a bilateral basis. 
 
 EFTA-Singapore FTA 2004: number of tariff lines covered 
(tariff lines at 8-digit-level) 
  EFTA Iceland Norway CH-FL Singapore 
Agricultural products  (HS 01-24)  5,639 2,065 1,288 2,286 1,218 
DF 2,869 1,630 816 423 1,218 
RD 308 55 80 173   
Industrial products  (HS 25-97)  18,243 6,116 5,912 6,215 9,471 
DF 18,217 6,116 5,912 6,189 9,471 
RD 3     3   
All products  (HS 01-97)  23,882 8,181 7,200 8,501 10,689 
DF 21,086 7,746 6,728 6,612 10,689 
RD 311 55 80 176     
Notes : 
DF - Duty free 
RD - Reduced duties 
Source : National Statistical Offices 
Agriculture: includes processed agricultural products. The c oncessions are negotiated on a bilateral basis. 
  
  WT/REG148/6 
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EFTA-Singapore trade in agriculture in 2004 
(in USD) 
 
HS Imports Imports Imports Imports Expo rts Exports Exports Export s Total trade Total trade Total trade Total trade 
  EFTA ← SG IS ← SG NO ← SG CH-FL ← SG EFTA → SG IS → SG NO → SG CH-FL → SG EFTA ↔ SG IS ↔ SG NO ↔ SG CH-FL ↔ SG 
                          
01         787     787 787     787 
02         136,458     136,458 136,458     136,458 
03 1,160,796 462 382,385 777,949 12,623,508 167,687 12,401,340 54,481 13,784,304 168,149 12,783,725 832,430 
04         3,484,113   38,625 3,445,488 3,484,113   38,625 3,445,488 
05         1,768   1,768   1,768   1,768   
06 124,801   30,297 94,504         124,801   30,297 94,504 
07 79,946   303 79,643 9,448     9,448 89,394   303 89,091 
08 56,376   55,141 1,235 1,317     1,317 57,692   55,141 2,551 
09 24,622 571 1,463 22,588 181,653   16,079 165,574 206,275 571 17,542 188,162 
10 35,441   35,441          35,441   35,441   
11 3,116     3,116 477     477 3,593     3,593 
12                        
13 22,290   1,439 20,851 153,749     153,749 176,039   1,439 174,600 
14        5,997     5,997 5,997     5,997 
15 100,020   44,475 55,545 42,062   37,162 4,900 142,082   81,637 60,445 
16 23,566 3,070 854 19,642 790,183   777,670 12,513 813,749 3,070 778,524 32,155 
17 12,012 11,487   525 651,877   71,873 580,004 663,889 11,487 71,873 580,529 
18 13,202   13,202  3,302,301   2,871 3,299,430 3,315,503   16,073 3,299,430 
19 813,006 13,344 297,226 502,436 1,553,463   151,835 1,401,628 2,366,469 13,344 449,061 1,904,064 
20 75,196   53,192 22,004 910,572   17,569 893,003 985,767   70,761 915,006 
21 511,836   53,691 458,145 4,808,779   42,434 4,766,345 5,320,615   96,125 5,224,490 
22 185,855 62,610 15,135 108,110 1,622,031   104,357 1,517,674 1,807,886 62,610 119,492 1,625,784 
23         83,443     83,443 83,443     83,443 
24 119     119 2,580,982   19,468 2,561,514 2,581,101   19,468 2,561,633 
 
 
 
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