WORLD TRADE  
ORGANIZATION  WT/REG228/1/Rev.1 
1 October 2008 
 (08-4622) 
Committee on Regional Trade Agreements  
  
 
    
 
FACTUAL PRESENTATION 
 
Comprehensive Economic Cooperation 
Agreement 
Between 
India and Singapore 
(Goods and Services) 
 
Report By the Secretariat 
 
Revision  
 
 
 
This report, prepared for the consid eration of the Comprehensive Economic 
Cooperation Agreement between India a nd Singapore has been drawn up by the 
WTO Secretariat on its own responsibility and in full consultation with the Parties.  
The report has been drawn up in accordance with the rules and procedures contained 
in the Decision for a Transparency M echanism for Regional Trade Agreements 
(document WT/L/671).    Any technical questions arising from this report may be addressed 
to Ms. Jo-Ann Crawford (tel: +41 22/739 5422) and Mr. Dale Honeck 
(tel: +41 22/739 5149). 
 
 WT/REG228/1/Rev.1 
Page iii 
 
 
  TABLE OF CONTENTS 
 
 
Page 
 
I. TRADE ENVIRONMENT 1  
A. M ERCHANDISE TRADE  1 
B. T RADE IN SERVICES AND INVESTMENT  4 
II. TREATY CHARACTER ISTIC ELEMENTS 6  
A. B ACKGROUND INFORMATION  6 
III. NATIONAL TREATMENT AND MARKET ACCESS FOR GOODS 7  
1. Import duties and charges, and quantitative restrictions 7  
2. Rules of origin 12  
3. Export duties and charges, and quantitative restrictions 13  
A. R EGULATORY PROVISIONS OF THE AGREEMENT  13 
1. Standards 13  
2. Safeguard mechanisms 14  
3. Anti-dumping 15  
4. Subsidies, state-aid and countervailing measures 15  
5. Other regulations 15  
IV. PROVISIONS ON TRADE IN SERVICES AND INVESTMENT 15  
A. S COPE AND DEFINITIONS  15 
B. D ENIAL OF BENEFITS  16 
C. M ARKET ACCESS  16 
D. N ATIONAL TREATMENT , MFN, STANDARD OF TREATMENT  16 
E. M OVEMENT OF NATURAL PERSONS  17 
F. I NVESTMENT  17 
G. D OMESTIC REGULATION  17 
H. M UTUAL RECOGNITION  17 
I. L IBERALIZATION COMMITMENTS  18 
1. Singapore 19  
2. India 20  
J. S AFEGUARD ACTIONS ON SERVICES TRADE AND INVESTMENT  21 
V. PROVISIONS AFFECTING TRADE IN GOODS, SERVICES AND INVESTMENT 22  
A. E-C OMMERCE  22 
B. I NTELLECTUAL PROPERTY  22 
C. G OVERNMENT PROCUREMENT  22 
D. S ECTOR -SPECIFIC PROVISIONS OF THE AGREEMENT  22 
E. I NSTITUTIONAL PROVISIONS OF THE AGREEMENT  22 
1. Exceptions and reservations 22  
2. Accession 23  
3. Institutional framework 23  
4. Dispute settlement 23  
5. Relationship with other agreements concluded by the Parties 24  
ANNEX   25 
 
 
 WT/REG228/1/Rev.1 
Page 1 
 
 
  COMPREHENSIVE ECONOMIC COOPERATION AGREEMENT BETWEEN  
INDIA AND SINGAPORE (GOODS & SERVICES) 
 
Factual Presentation by the Secretariat  
 
 
I. TRADE ENVIRONMENT  
A. MERCHANDISE TRADE  
1. The Comprehensive Economic Cooperation Ag reement between India and Singapore 
(hereafter "the Agreement") is Singapore's second bilateral free trade agreement (FTA) with an 
Asian country.  It is India's first FTA covering services.  Of the Parties, India ranked as the world's 
29th top exporter and 17th top importer in 2005 in terms of merchandise trade, while for the same 
year Singapore was the world's 14th largest exporter and 15th largest importer.  In the period 
2003-2005, India's trade to GDP ratio was 36.6, while Singapore's ratio was 431.8. 
2. Developments in recent years in global and intr a trade between the Parties are pictured in 
Charts I.1 and I.2.  Over the period surveyed (1 997-2005), trade between the Parties has fluctuated.  
For the latest period surveyed (2003-2005), India's figures show a growing trade surplus with Singapore, while Singapore's figures for the period 1 997-2005 show a consistent trade surplus in its 
favour.
1 
020406080100120140160180200
1997 1998 1999 2000 2001 2002 2003 2004 2005012345678910US$billion US$billionChart I.1 - India: Merchandise im ports from and exports to world 
and Singapore, 1997-2005
Source: UNSD, Comtrade database.Imports from Singapore
Exports to SingaporeTotal imports
Total exportsLeft hand sale: Right hand sale:
 
 
   
                                                     
 
1 According to the Parties, this is due to the us e of different accounting me thods for calculating trade 
data. WT/REG228/1/Rev.1 
Page 2  
 
  04080120160200240
1997 1998 1999 2000 2001 2002 2003 2004 2005024681012US$billion US$billionChart I.2 - Singapore: Merchandis e imports from and exports to 
world and Indi a, 1997-2005
Source: UNSD, Comtrade database.Imports from India
Exports to IndiaTotal imports
Total exportsLeft hand scale: Right hand scale:
 
 
3. The commodity structure of trade among the Parties, as well as of their imports and exports 
to the world in the period 2003-2005, is shown in Chart I.3, on the basis of Harmonized System (HS) 
sections. 
4. Three product categories (machinery, chemicals and vehicles) accounted for more than 75% 
of India's imports from Singapore; wood pulp and base metals accounted for a further 12.6%.  Singapore's three largest export product categories – machinery, minerals and chemicals – made up 
79.1% of its total exports in 2003-2005 and accounted for 64.5% of  India's imports from Singapore 
in 2003-2005. 
5. As to Singapore's imports from India in th e period 2003-2005, more than 80% were 
classified under four product categories (minerals, p earls, base metals and chemicals).  India's four 
largest export product categories – textiles, pearls , minerals and chemicals – made up 58.6% of its 
total exports in 2003-2005 and accounted for 75.9% of Singapore's imports from India in 2003-2005. 
  WT/REG228/1/Rev.1 
 Page 3 
 
 
  Chart I.3
India and Singapore: product compos ition of merchandise trade, annual 
average (2003-2005)
India's imports from Singapore Singapore's imports from India
 Source:  UNSD, Comtrade database.Per cent
Total:  US$2.66 billion Total:  US$2.77 billion
Total:  US$111.73 billion Total: US$169.97 billion
Total:  US$82.09 billion Total:  US$196.08 billionIndia's global exportsSingapore's global exportsIndia's global imports Singapore's global importsOther
3.5
Machinery  
49.2Optical 4.2
Machinery 6.7Other 
6.4Optical 1.8
Base metals 9.2
Other 
7.8
Machinery
53.3 Chemicals 
5.5Plastics 2.2Other
10.5
Minerals
33.4Fat and oils 2.2
Machinery
17.1Vehicles 4.9
Chemicals 
8.2Textiles 2.0
Base metals 4.3Plastics 2.2
Vehicles 4.6
Other 
6.1Other 
9.6
Animals 2.4
Chemicals
10.2Base metals 9.5Prepared foods 2.2
Base metals 2.7
Minerals
10.5Machinery 
59.0Vehicles  2.1
Chemicals 
 9.6Chemicals 
14.8
Minerals 
15.8Optical  3.9Textiles 4.7
Base metals 
5.9
Optical 3.2Plastics 4.4
Base metals 5.2
Vehicles 11.2Chemicals 7.1Minerals 
33.0
Textiles 18.1
Machinery 6.7
Minerals 13.8Vegetables 5.5Plastics 3.3Pulp of wood 
7.4
Pearls
31.1
Pearls
16.5
Pearls
16.5Vehicles  3.6Plastics 3.2Raw Hides 2.0
 
 WT/REG228/1/Rev.1 
Page 4  
 
  B. T
RADE IN SERVICES AND INVESTMENT  
6. In 2005, India ranked 15th in the world in terms of imports of commercial services, and 12th 
in terms of exports.  India's commercial service s imports amounted to US$49.5 billion in 2005, 
representing 2.1% of world imports, while exports  amounted to US$54.4 billion, representing 2.2% 
of world exports.  In the same year, Singapore ranked 13th in the world in terms of imports of 
commercial services and 16th in terms of exports.  Singapor e's commercial services imports 
amounted to US$54.1 billion in 2005, representing 2.3% of world imports, while exports amounted 
to US$51.2 billion, representi ng 2.1% of world exports. 
7. Chart I.4 shows the breakdown of commercial services trade for India in 1997-2003 (the 
most recent available).  Since 2000, computer and information services have accounted for a 
growing share of India's commercial services e xports, while transportation services and other 
business services account for the largest shares of imports. 
051015202530
1997 1998 1999 2000 2001 2002 2003051015202530
1997 1998 1999 2000 2001 2002 2003Chart I.4
India, total commercial services trade, 1997-2003
Exports Imports
Transportation servicesInsurance servicesTravel servicesFinancial servicesCommunication servicesComputer and information services
Source: IMF, BOP CD-Rom.Construction servicesUS$ billion
Royalties and license fees
Other business services
Government services
 
 
8. Chart I.5 shows the breakdown of commercial services trade for Singapore in the years 
2000-2005.  Transportation services and other busin ess services account for the largest share of 
Singapore's commercial services exports, while tr ansportation and travel services, royalties and 
license fees and other business services account  for the largest shares of imports. 
  WT/REG228/1/Rev.1 
 Page 5 
 
 
  0102030405060
2000 2001 2002 2003 2004 20050102030405060
2000 2001 2002 2003 2004 2005Chart I.5
Singapore, total commercial  services trade, 2000-2005
Exports Imports
Transportation services Other business services
Travel servicesFinancial services
Communication servicesComputer and information
servicesPersonal, cultural and recreational services
Source: IMF, BOP CD-Rom.Insurance service Royalties and license fees Government servicesUS$ billion
 
050100150200250300350
2001 2002 2003 2004 2005050100150200250300350
2001 2002 2003 2004 2005Chart I.6 
Singapore inward and outward foreign investment stock from world, 2001-05
Inward Outward
Foreign portfolio investment Foreign direct investment
Source: Singapore Government StatisticsUS$ billion
 WT/REG228/1/Rev.1 
Page 6  
 
  9. Singapore's global investment position is depicted in Chart I.6.  Singapore's inward stock of 
foreign direct investment increased 44% over th e period 2001-2005, while its stock of outward 
foreign direct investment increased by 39% over the same period. 
10. Singapore's investment position with India is de picted in Chart I.7 which shows Singapore's 
inward and outward stock of foreign direct i nvestment with India over the period 2001-2005.  
Singapore's foreign direct investment in India accoun ted for 1.9% of its total outward foreign direct 
investment in 2005, up from 1.5% the previous year.  Singapore accounts for a small, but growing percentage of inward foreign investment from India.   In 2005, foreign direct investment in Singapore 
by India represented 1.7% of total FDI in Singapore  by Asian investors, up from 0.7% in 2004.   
0.000.250.500.751.001.251.501.752.00
2001 2002 2003 2004 20050.000.250.500.751.001.251.501.752.00
2001 2002 2003 2004 2005Chart I.7 (Singapore)
Singapore inward and outward foreign direct  investment stock with India, 2001-05
Inward Outward
Source: Singapore Government StatisticsUS$ billion
 
 
II. TREATY CHARACTERISTIC ELEMENTS 
 
A. BACKGROUND INFORMATION  
11. The Comprehensive Economic Cooperation Agreem ent was signed by the Government of 
India and the Government of Singapore on 29 June  2005 and entered into force on 1 August 2005.  
The Agreement is of an indefinite duration. 
12. The Agreement was notified to the WTO by the Parties on 3 May 2007 under 
Article XXIV:7(a) of the GATT 1994 and Article V: 7(a) of the GATS (WT/REG228/N/1).  The text 
is available, together with its Anne xes, on the Parties' official websites.2 
  
                                                     
 
 2 India - http://www.commerce.nic.in/ceca/toc.ht m and Singapore - h ttp://www.fta .gov.sg.  WT/REG228/1/Rev.1 
 Page 7 
 
 
  13. The Agreement is composed of 16 Chapters, as follows: 
Box II.1:  Table of cont ents of the Agreement  
 Chapter 0 Preamble 
 Chapter 1 Objectives and General Definitions 
 Chapter 2 Trade in Goods  Chapter 3 Rules of Origin 
 Chapter 4 Customs 
 Chapter 5 Standards  Chapter 6 Investment 
 Chapter 7 Services 
 Chapter 8 Air services  Chapter 9 Movement of Natural Persons 
 Chapter 10 E-commerce 
 Chapter 11 Intellectual Property Cooperation 
 Chapter 12 Scien ce and Technology 
 Chapter 13 Education 
 Chapter 14 Media 
 Chapter 15 Dispute Settlement 
 Chapter 16 General and Final Provisions 
 
14. The Agreement contains fifteen annexes which deal inter alia  with: investment concessions;  
services concessions;  sectoral concessions on tel ecommunication equipment, food products and 
electronic products;  financial services;  telecomm unications services;  list of professionals;  and a 
framework for media cooperation. 
15. The Agreement contains no explicit transition period:  in the case of Singapore, tariff 
elimination on imports of goods from India tak es place on the date of entry into force of the 
Agreement;  in the case of India tariff reductions or el iminations are to be completed within a period 
of four years, i.e. by 1 April 2009.  The commitments made by the Parties on trade in services are effective upon entry into force of the Agreement,  unless otherwise specified in their schedules of 
commitments. 
III. NATIONAL TREATMENT AND MARKET ACCESS FOR GOODS 
1. Import duties and charges, and quantitative restrictions 
(a) General provisions 
16. The Parties agree to accord national treatment to the goods of the other party in accordance 
with Article III of the GATT 1994 (Article 2.2 of the Agreement). 
17. Market access provisions for the reduction and/or elimination of customs duties are 
addressed in Annexes 2A and 2B, for India and Singa pore, respectively.  Tariff liberalization covers 
Chapters 1-97 of the Harmonized System (HS).  In the case of India, the Agreement provides for the  
elimination of duties on imports of certain goods or iginating in Singapore on the date of entry into 
force.  A second list contains products that are subj ect to a phased elimination of duty in five annual 
stages while for a third list duties are progressively  reduced over a five year period, but not 
eliminated.  A fourth list contains those products not subject to concessions.  In the case of Singapore, customs duties on all products originating in  India are eliminated on the date of entry into 
force of the Agreement.   WT/REG228/1/Rev.1 
Page 8  
 
  18. Article 2.5 prohibits the Parties from adoptin g or maintaining any non-tariff measures on 
imports or exports, except in accordance with its WTO rights and obligations or in accordance with 
other provisions of the Agreement. 
19. In accordance with Article 2.3.2, upon request  the Parties agree to consult each other to 
consider the possibility of accelerating the reduction and/or elimination of customs duties.
3  
Article 2.11 provides that if a Party concludes a pr eferential agreement with a third party, following 
the signature of this Agreement, it will give the ot her Party the opportunity to negotiate for the more 
favourable concessions and bene fits granted therein.  
20. The Parties agree to allow duty-free temporary admission for certain goods detailed in 
Article 2.15, subject to the conditions therein.   
(b) Liberalization of tariff lines and trade4 
21. The elimination of tariffs applicable between  the Parties is detailed in the corresponding 
Parties' schedules.  In the case of India, tariff elimination and/or reduction began on 1 August 2005, 
using the MFN rate in force on that date.  Subseque nt reductions of duty take place on 1 April of the 
given year.   
22. The overall tariff elimination under the Agreem ent is depicted in Tables III.1A and III.1B 
below.5  In the case of India, 2.7% of total tariff lines were already duty-free on an MFN basis in 
2006.6  A further 2.2% of tariff lines became duty-fre e for imports from Singapore in 2006;  in terms 
of imports from Singapore for the period 2003- 2005, these figures amount to 38.1 and 10.1%, 
respectively.  By the end of the transition period in 2009, a further 18.9% of tariff lines are to be liberalized, accounting for 26.9% in terms of imports from Singapore for the period 2003-2005.
7  
Thus, a total of 23.6% of tariff lines are liberali zed under the Agreement, corresponding to 75.1% in 
terms of import values from Singapore for the period 2003-2005. 
Table III.1A 
Tariff elimination commitments under the Agreement  and corresponding average trade values for 2003-05* 
A:  India 
Duty phase-out period Number 
of lines % of total lines in 
India's Tariff 
Schedule Value of India's 
imports from 
Singapore 
(US$ million) % of India's total  
imports from 
Singapore 
MFN duty free 313 2.7 1,024.4 38.1 
2006 252 2.2 271.7 10.1 
2009 2,178 18.7 722.8 26.9 
Remain dutiable 8,886 76.4 665.0 24.7 
Total 11,629 100.0 2,691.5 100.0 
* India's tariff schedule and import values are valid for a fiscal year, i.e. from 1 April to 31 March. 
 
                                                      
3 According to the Parties, following the first Revi ew of the CECA the Parties agreed to further 
expand the coverage of tariff concessions.  These concessions entered into force on 15 January 2008. 
4 Unless otherwise specified, all statistics, tables and charts contained in this document have been 
prepared on the basis of data  provided by the Parties. 
5 Tariff lines containing in-quota duties are ex cluded from all the tari ff-related calculations. 
6 India's tariff is composed of 11,629 tariff lines at the HS 8-digit level.  In Section XI, Textile and 
articles, 677 lines have alternate specific rates.  Only the ad valorem  rate is taken into account in the 
calculation of averages. 
7 For those 31 lines in HS Section XI, Tex tiles and articles, which were subject to both ad valorem  
and alternate duties, both co mponents are liberalized.  WT/REG228/1/Rev.1 
 Page 9 
 
 
  23. In the case of Singapore, 99.9% of tariff lines were already duty-free on an MFN basis in 
2006.8  All remaining tariff lines were liberalized as  of the entry into force of the Agreement, 
resulting in a liberalization of 100 percent of trade and tariff lines. 
Table III.1B 
Tariff elimination commitments under the Agreement  and corresponding average trade values for 2003-05 
B:  Singapore 
Duty phase-out period Number 
of Lines % of total lines in 
Singapore's Tariff 
Schedule Value of Singapore's 
imports from India 
(US$ million) % of Singapore's total  
imports from India 
MFN duty free 10,682 99.9 4,648.5 99.6 
2006 6 0.1 1.4 0.0* 
Total 10,688 100.0 4,666.4 100.0 
* Imports from India of the value of US$16.6 million in HS Chapters 98-99 are not  classified in the Harmonized System. 
Source:  WTO Secretariat estimates, based on data pr ovided by India and Singapore authorities. 
 
(c) India's liberalization schedule 
24. The base rates used by India for implemen ting its tariff liberalization scheme already 
provided for 2.7% of tariff lines being duty free before  the entry into force of the Agreement.  As 
can be seen from Chart III.1, most of the additi onal 2.2% of tariff lines freed upon entry into force 
held base rates of 20% or less.  Further reduc tions of duties take place in 2007 and 2008, but no 
elimination takes place.  In 2009, most of the 18 .7% of tariff lines liberalized have a base rate of 
20% or less.   
 
                                                      
8 Singapore's tariff is composed of 10,6 88 tariff lines at the HS 8-digit level. WT/REG228/1/Rev.1 
Page 10  
 
  0 250 500 750 1,000 1,250 1,500 1,750 2,000 2,250 2,500 2,750 3,0002006200720082009Chart III.1
India's duty eliminatio n under the AgreementYear of duty free treatment   
Source: WTO Secretariat estimates, based on data provided by the India authorities.Number if duty-free lines (cumulative)
Duty-free <10% <20% <30% >50% MFN is:
 
 
25. Table III.2 shows India's trade liberalization commitments under the Agreement on the basis 
of products' treatment at the HS 8-digit level or ganized by HS section product categories.  Of the 
11,629 tariff lines forming India's tariff schedul e, 313 tariff lines where already MFN duty-free in 
2006;  an additional 252 tariff lines were liberalized  upon entry into force of the Agreement (all of 
which are industrial products).  In 2009, an additiona l 2,178 tariff lines are subject to liberalization;  
the 8,886 lines which remain subject to duties cover all HS sections. 
Table III.2 
India: Tariff elimination under the Agreement, by HS section 
No of  duty-free lines 
under the Agreement in: HS section and description MFN 
average 
% Total 
No of lines MFN duty 
free 
2006 2009 Remain dutiable 
I Live animals and animal products 30.2 342 0 0 127 215 
II Vegetable products 36.4 595 14 0 1 580 
III Animal or vegetable fats and oils 58.4 120 0 0 0 120 
IV Prepared food etc. 37.2 392 0 0 31 361 
V Minerals 11.8 311 1 2 51 257 
VI Chemical and products 14.9 2,242 6 129 492 1,615 
VII Plastics and rubber 15.0 589 2 21 47 519 
VIII Hides and skins 11.0 150 40 13 44 53 
IX Wood and articles 13.5 222 0 0 168 55 
X Pulp, paper etc. 13.7 279 12 1 147 119 
XI Textile and articl es 14.8 1,947 6 0 203 1,740 
XII Footwear, headgear 15.0 114 0 0 18 96 
XIII Articles of stone 14.5 263 0 3 67 193 
XIV Precious stones, etc. 15.0 91 0 0 30 61 
XV Base metals and  products 10.9 1,304 0 0 223 1,082 
XVI Machinery 12.9 1,745 193 65 211 1,277 
Table III.2 (Cont'd) 
  WT/REG228/1/Rev.1 
 Page 11 
 
 
  No of  duty-free lines 
under the Agreement in: HS section and description MFN 
average 
% Total 
No of lines MFN duty 
free 
2006 2009 Remain dutiable 
XVII Transport equipment 32.7 265 2 6 85 172 
XVIII Precision equipment 13.6 376 34 12 175 155 
XIX Arms and ammunition 15.0 21 0 0 2 19 
XX Miscellaneous manufact'd articles 15.0 239 0 0 49 190 
XXI Works of art, etc. 12.4 17 3 0 7 7 
Total 17.0 11,629 313 252 2,178 8,886 
Source:  Data provided by Indian Authorities. 
(d) Singapore's liberalization schedule 
26. At entry into force of the Agreement, all but six of Singapore's tariff lines were duty-free on 
an MFN basis.  Duties on these six lines were eliminat ed as of the date of entry into force of the 
Agreement. 
27. Table III.3 shows Singapore's trade liberaliza tion commitments under the Agreement on the 
basis of products' treatment at the HS 8-digit le vel organized by HS section product categories.  The 
six lines not already duty-free on an MFN basis fall in Section IV, prepared food.  
Table III.3 
Singapore : Tariff elimination under the Agreement, by HS section 
HS section and description MFN 
average 
% Total 
No of lines  MFN duty free  
No of  duty-free lines under 
the Agreement in 2006 
I Live animals and animal products 0  338 338 0  
II Vegetable products 0  388 388 0  
III Animal or vegetable fats and oils 0  151 151 0  
IV Prepared food etc. 0  417 411 6 
V Minerals 0  212 212 0  
VI Chemical and products 0  1,287 1,287 0  
VII Plastics and rubber 0  588 588 0  
VIII Hides and skins 0  112 112 0  
IX Wood and articles 0  253 253 0  
X Pulp, paper etc. 0  271 271 0  
XI Textile and articles 0  1,185 1,185 0  
XII Footwear, headgear 0  74 74 0  
XIII Articles of stone 0  221 221 0  
XIV Precious stones, etc. 0  77 77 0  
XV Base metals and  products 0  1,161 1,161 0  
XVI Machinery 0  2,202 2,202 0  
XVII Transport equipment 0  1,026 1,026 0  
XVIII Precision equipment 0  398 398 0  
XIX Arms and ammunition 0  28 28 0  
XX Miscellaneous manufact'd articles 0  287 287 0  
XXI Works of art, etc. 0  12 12 0  
Total  10,688 10,682 6 
Source:  Data provided by Singapore authorities. WT/REG228/1/Rev.1 
Page 12  
 
  2. Rules of origin 
28. Disciplines regarding rules of origin are set out in Chapter 3, while rules relating to customs 
procedures are covered by Chapter 4.   
29. The basic requirements for a product to be consider ed originating (Articles 3.3 and 3.4) are:  
(a) the product is wholly obtained in one of the Parties; or 
(b) the total value of materials originating in  third parties does not exceed 60% of the 
FOB value of the product;  and
 
(c) the product is classified in a heading of the Harmonised System different from that 
in which all the non-originating materials used in its manufacture are classified; or 
(d) the product satisfies the product specifi c rules as specified in Annex 3A. 
30. The import content test (MC)9 together with the change in tariff classification (CTC) at the 
heading level (CTH 4-digit) can be considered as the regime-wide rule of origin.  The MC test 
requires a minimum of 40% local value content (combining the value of originating materials plus direct labour cost, direct overhead cost and profit) or a maximum permissible limit for 
non-originating materials of 60%.   
31. Product specific rules contained in Annex 3A apply to selected products in 11 different 
HS Chapters:  prepared foodstuffs, chemicals, plasti cs, paper, machinery, and measuring equipment.   
These product specific rules provide additional flexib ility for certain products by specifying in many 
cases only a single rule with which the product must comply in order to attain originating status 
(either MC or CTH), or by combining the import cont ent test with a change at the subheading, rather 
than the heading level.  
32. Article 3.9 provides for bilateral cumulation betw een the Parties.  Material in a finished 
product is considered originating if it satisfies the origin criteria in Article 3.3 (wholly obtained or 
produced) or Article 3.4 (not wholly obtained or pr oduced).  For such origin ating materials, the full 
value of the material can be considered when  incorporated into the finished product.   
33. There is no provision in the Agreement for a "tolerance rule" providing that non-originating 
materials which would otherwise not be accepted may nevertheless be used up to a specified 
percentage.    
34. Article 3.6 lays down a list of insufficient wo rking or processing operations carried out in 
the territory of the Parties that do not confer origin.  Articles 3.10-3.11 deal with how certain 
materials (accessories, spare parts and tools, and packaging) are to be treated or valued when determining the origin of the goods.  Article 3.13 deals with advance rulings, whereby an importer, 
exporter or producer of a good may request a written advance ruling on whether the good qualifies 
as an originating good.  
 
35. Article 3.14 deals with the transport of goods through third parties.   
                                                      
9 The MC requirement establishes the minimum value of originating materials or the maximum value 
of non-originating materials allowed in the final produc t, expressed as a percentage of the FOB price of the 
product.  WT/REG228/1/Rev.1 
 Page 13 
 
 
  Box III.1:  Rules of Origin: Basic Features at a Glance 
• Regime-wide rules of origin with product-specific exceptions. 
• Product-specific rules apply to  certain products in 11 different HS Chapters.   
• Product specific criteria: 
              - MC or CTC only 
              - MC plus change at subheading level 
              - Change at subheading level only  
• Bilateral cumulation between India and Singapore 
• Absorption principle applies. 
• No tolerance rule. 
• Outward-processing not authorized. 
 
3. Export duties and charges, and quantitative restrictions 
36. Article 2.5 of the Agreement provides that neither Party may adopt or maintain any 
non-tariff measures on the export of any goods to the other Party except in accordance with its 
WTO rights and obligations or in accordance with other provisions of the Agreement.   
A. REGULATORY PROVISIONS OF THE AGREEMENT  
1. Standards 
(a) Technical barriers to trade 
37. Chapter 5 lays down the provisions applying to  standards and technical regulations.  The 
Parties agree to implement the principles of mutual  recognition that provide the most appropriate or 
cost-efficient approach to the removal or reductio n of technical barriers to the trade in goods 
between them for products specified in Sectoral Anne xes 5A and C.  In particular, the Parties agree 
to accept the test reports and certification of results of conformity assessment of the other Party and accord each other mutual recognition of equivalence of mandatory requirements.  In accordance with 
Article 2.4 of the WTO Agreement on Technical Barriers to Trade  the Parties agree to use relevant 
international standards where they exist.  As concerns the mutual recognition of conformity 
assessment, Chapter 5 provides for provisions to no minate designating authorities, the registration, 
verification and monitoring of conformity assessme nt bodies and their suspension and withdrawal.  
A Joint Committee on Mutual Recognition is establishe d to implement the provisions of Chapter 5 
and to resolve any questions or disputes relating to its application.   
38. Sectoral Annex 5A lays down provisions for the mutual recognition of test reports (within 
one year of the entry into force of the Agreem ent) and of equipment certification (within a time 
frame to be agreed between the Parties) of telecommunications equipment including wire and 
wireless equipment, and terrestrial  and satellite equipment.  Sector al Annex 5C lays down provisions 
for third party conformity assessment activities or requirements for product certification for new 
electrical and electronic equipment.
10 
(b) Sanitary and phytosanitary measures 
39. Chapter 5 lays down the provisions applying to sanitary and phytosanitary measures.  The 
Parties agree to implement the principles of mutual  recognition that provide the most appropriate or 
                                                      
10 Following the first CECA review the Parties agre ed to implement the Elect rical and Electronic and 
Telecom Annexes in accordance with Annexes 5A an d 5C of the CECA.  Th e MRA will commence with 
Designating Authorities of either Party submitting the application with regard to Conformity Assessment Body 
to the other Party by 31 December 2007.   WT/REG228/1/Rev.1 
Page 14  
 
  cost-efficient approach to the removal or reduction of sanitary and phytosanitary barriers to the trade 
in goods between them for products specified in Sectoral Annex 5B.   
40. In Sectoral Annex 5B the Parties agree to identify food products, on a product by product 
basis, to be covered by conformity assessment arrangements for the purpose of ensuring that food 
products exported by a Party meet the food standa rds/mandatory requirements of the other Party.  
Food products already subject to conformity assess ment arrangements are egg products (pasteurised 
egg powder of whole egg, egg yol k and egg albumen);  dairy products (milk powder, casein, whey 
protein concentrate, natural and processed ch eese);   and packaged drinking water.   
2. Safeguard mechanisms 
(a) Global Safeguard Measures 
41. According to Article 2.9.5, the Parties retain  their rights and obligations under Article XIX 
of GATT 1994 and the WTO Agreement on Safeguards .  A Party taking a safeguard measure under 
Article XIX and the Agreement on Safeguards  may exclude imports from the other Party if such 
imports are not a substantial cause of serious injury or threat thereof. 
(b) Bilateral safeguards 
42. Article 2.9 sets out the rules that apply to the imposition of a bilateral safeguard measure.  A 
Party may impose a bilateral safeguard measure on an originating good if there is an increase in 
imports in absolute terms which causes or threaten s to cause serious injury to the domestic industry 
of the importing Party producing a like or directly competitive good.
11  Disciplines attached to such 
action include the need for prior investigation by  the Party's competent authorities;  scope and 
duration of the measure;  progressive liberaliza tion;  prohibition of su bjecting a good to both 
bilateral safeguards and safeguards applied in the WTO context;  and compensation.  The conditions 
applied to the use of bilateral saf eguards are detailed in Table III.2. 
Table III.2  Conditions applied to the application of bilateral safeguards 
Type of Safeguard 
Requirements 
Bilateral 
Trigger Rise in imports In absolute terms  
Criteria  Serious injury or ac tual threat thereof 9  
Measures allowed Suspension of further duty reduction 9 
 Increase in duty rate  MFN rate in effect when measure was taken, or 
MFN rate in effect on day preceding start of 
investigation, whichever is lower 
Timing Maximum duration, including extension  2 years plus 1 year extension 
 Safeguard measure vis-à-vis  the transition 
period of the good concerned   No specific link to the transition period 
Conditions or limitations  Information of the ins titution of a proceeding 
through written notice 9 
 Consultation 9 
 Prior investigation  9 
 Compensation  For measures exceeding 2 years  
 Possibility of retaliation  9 
 Prohibition of bilatera l and global safeguards 
on the same good simultaneously  9 
Source: WTO Secretariat 
                                                      
11 "Serious injury" is defined in Article 2.1 of th e Agreement as "a significant overall impairment in 
the position of a domestic industry".  WT/REG228/1/Rev.1 
 Page 15 
 
 
  (c) Restrictions to safeguard balance of payments 
43. The Agreement incorporates Arti cle XII of the GATT 1994 and the Understanding on 
Balance of Payments Provisions . 
3. Anti-dumping  
44. Article 2.7 of the Agreement lays down the provisions that apply to anti-dumping 
investigations.  Before proceeding to initiate an anti-dumping investigation, the Parties agree to give 
each other seven working days notice.  Where or iginating goods are subject to an anti-dumping 
investigation, the export price of such goods is to be determined in accordance with Article 2.4 of 
the WTO Agreement on Anti-Dumping .   
4. Subsidies, state-aid and countervailing measures 
45. In Article 2.8, the Parties reaffirm their co mmitment to abide by th e provisions of the 
WTO Agreement on Subsidies and Countervailing Measures.   
5. Other regulations 
(a) Customs-related procedures 
46. Customs procedures related to rules of origin  are detailed in Articles 3.15-3.18, Annex 3B, 
and Chapter 4.  Articles 3.15-3.18 lay out disciplines for documentation requirements and 
verification of origin.  Annex 3B contains the operational procedures which apply to the issuance 
and verification of the certificate of origin and ot her related administrative matters.  The certificate 
of origin is to be issued by the government au thority designated by the exporting Party and notified 
to the other Party.  Annex 3B also lays down provisions covering applications for pre-exportation 
verification of the origin, pre-exportation examination, issuance of certificate of origin, presentation, 
and action against fraudulent acts.  Chapter 4 la ys down the provisions for transparency, risk 
management, paperless trading, denial of preferen tial tariff treatment, verification of certificates of 
origin, advance rulings, sharing of best practices, and confidentiality. 
IV. PROVISIONS ON TRADE IN SERVICES AND INVESTMENT 
A. SCOPE AND DEFINITIONS  
47. The liberalization of trade in services is main ly governed by Chapter 7.  It applies to 
measures affecting cross-border trade in services ta ken by central, regional or local governments and 
authorities of the Parties; and non-governmental bodies in the exercise of powers delegated by central, regional or local government or authorities.  The provisions of Chapters 7 do not apply to:  subsidies granted by the Parties, services supplie d in the exercise of governmental authority, and 
shell companies located in the territory of either  Party with negligible or nil business operation or 
with no real and continuous business activities carried  out in the territory of either Party.   
48. Chapter 7 contains the definitions which appl y to measures taken by central, regional or 
local authorities of the Parties affecting trade in services in all four modes of supply, as defined in the GATS mutatis mutandis .  Thus, measures affecting Mode 3 are covered by this Chapter except 
with respect to investors and investments in both services and non-services sectors, which is dealt 
with in Chapter 6 – Investment.  A "natural person of  a Party" is defined as a national of a Party, or a 
permanent resident in that Party.  The defin ition of "juridical person" mirrors that found in 
Article XXVIII of the GATS.  For the purposes of th e supply of audio-visual, education, financial 
and telecommunications services through commercial presence, juridical persons must be owned or WT/REG228/1/Rev.1 
Page 16  
 
  controlled by natural persons of the other Party.   The provisions of Chapter 6 do not apply to 
subsidies granted by the Parties. 
49. As regards commitments made in  trade in services, the Agre ement follows a "positive list" 
approach, as in the GATS.  For each  country there is a list of horizontal exceptions, followed by a 
schedule of commitments based on the Central Pr oduct Classification (CPC) in Annexes 7A (India) 
and 7B (Singapore).  In the case of investment , India's schedule of commitments containing the 
conditions and qualifications on  national treatment are set out in Annex 6A, while Annex 6B 
contains the exceptions which Singapore maintains with  respect to sectors, subsectors or activities.   
B. D
ENIAL OF BENEFITS  
50. Under Article 7.23, a Party may deny the benef its of Chapter 7 to a service supplier of the 
other Party if it establishes that the service is supplie d from or in the territory of a non-Party, and in 
the case of the supply of a maritime transport service,  if it establishes that th e service is supplied by 
a vessel registered under the laws of a non-Party, and by a person which operates and/or uses the vessel in whole or in part but which is of a non-Part y.  In addition, benefits may be denied if the 
Party establishes that persons of a non-Party ow n or control the service supplier in the case of 
services supplied through commercial presence, or in  the case of supply of a service from or in the 
territory of the other Party, if the Party establish es that the service is supplied by a service supplier 
owned or controlled by a person of the denying Party. 
51. Under Article 6.9, a Party may deny the benefits  of the investment chapter to an investor 
that is an enterprise of the othe r Party where the denying Party esta blishes that the enterprise has no 
substantial business operations in the territory of th e other Party, or investors of the denying Party 
own or control the enterprise.   
C. M
ARKET ACCESS  
52.  Market access provisions in trade in services are laid down in Article 7.3 of the Agreement.  
The Parties agree to accord services and suppliers of the other Party treatment no less favourable in the four modes of supply as provided for in the Parties' schedules of commitments.  The Parties also 
commit themselves, as in GATS Article XVI, not to maintain or adopt six types of measures that 
would require an economic needs test, impose a qua ntitative limitation on certain number of aspects 
or a requirement for the type of legal entity through which a supplier may provide a service, unless 
otherwise specified in their schedules.   
D. N
ATIONAL TREATMENT , MFN, STANDARD OF TREATMENT  
53. Under Article 7.4, the Parties commit themselv es for the sectors covered in their schedules, 
and subject to the conditions therein, to gran t services and service suppliers of the other Party 
treatment no less favourable than that granted to their own like services and service suppliers.  The 
Parties understand that treatment no less favourable can be granted th rough either formally identical 
or formally different treatment, as long as this  difference does not change the conditions of 
competition.   
54. According to Article 7.6, if a Party enters into any agreement on trade in services with a 
non-Party after this Agreement enters into force, it shall consider offering the other Party treatment 
no less favourable than that offered under that Agreement.   
55. According to Article 7.20, the provisions of  market access and national treatment do not 
apply to laws, regulations or requireme nts governing government procurement.  WT/REG228/1/Rev.1 
 Page 17 
 
 
  E. MOVEMENT OF NATURAL PERSONS  
56. Rights and obligations with respect to the m ovement of natural persons are contained in 
Chapter 9.  This Chapter applies to natural pers ons of a Party when they are service sellers or 
suppliers, sellers of goods, investors, or employed by an investor in respect of an investment by that 
investor in the territory of the other Party, and advisors. The definition of natural persons includes 
nationals of a Party and permanent residents.  Th e provisions of Chapter 9 do not apply to measures 
pertaining to citizenship, permanent residen ce, or employment on a permanent basis. 
57. The Parties agree to grant upon application by a business visitor of the other Party, a 
five year multiple entry visa with the right to temporary entry for a period of up to two months, 
which may be extended for one month upon request.  Short-term services suppliers may be granted 
temporary entry for an initial period of up to 90 days, with possibility of extension of another 
90 days.  Intra-corporate transferees are granted an  initial visa valid for up to two years, which may 
be extended for up to three years at a time for a to tal term not exceeding eight years.  Professionals 
(having a specialized occupation as listed in Annex 9A ) may be granted temporary stay for up to one 
year. 
58. Spouses or dependants of natural persons who ha ve been granted the right to long term 
temporary entry may be granted the right to work as managers, executives or specialists, subject to 
relevant licensing, administrative and registration requirements.   
F. INVESTMENT  
59. Chapter 6 applies to investors of a Party and to their investments in the territory of the other 
Party whether made before or after the entry into force of the Agreement.  Chapter 6 requires each 
Party to accord national treatment (Article 6.3) to investors and investments of the other Party with 
respect to the establishment, acquisition, expansio n, management, conduct, operation, liquidation, 
sale and transfer of investments in the sectors liste d in Annex 6A (India) and Annex 6B (Singapore). 
60. Article 6.4 contains provisions relating to co mpensation for losses, while Article 6.5 deals 
with expropriation.  In Article 6.6, the Parties agre e to ensure the free transfer of capital and returns 
from any investments.   
G. DOMESTIC REGULATION  
61. Article 7.10 contains provisions on domestic  regulation, in particular governing the 
maintenance of tribunals and pro cedures for the review of decisions  affecting trade in services 
(Article 7.10.2) and for the treatment of applicati ons for authorization (Article 7.10.4), which mirror 
the corresponding GATS provisions (Article VI.2-3).  The Parties agree to inco rporate the results of 
negotiations on disciplines under GATS Article VI .4 into the Agreement and endorse the GATS 
criteria of transparency and objec tivity, not unnecessarily  burdensome, and not a restriction on the 
supply of the service for such measures.  In th e interim, they agree to apply licensing and 
qualification requirements and technical standards in accordance with such measures.  In sectors where specific commitments regarding professiona l services are undertaken, the Parties agree to 
provide for adequate procedures to verify th e competence of professionals of the other. 
H. M
UTUAL RECOGNITION  
62. Article 7.11 contains provisions on recognition of standards or cr iteria for the authorization, 
licensing or certification of services suppliers.  The Parties agree to ensure  that their respective 
professional bodies in the service sectors of accounting and auditing, architecture, medical (doctors), 
dental and nursing negotia te and conclude arrange ments providing for mutual recognition of licenses WT/REG228/1/Rev.1 
Page 18  
 
  or certifications within twelve months of th e date of entry into force of the Agreement.
12  Any delay 
or failure to conclude such agreements is not c onsidered as a breach of a Party's obligations, nor 
subject to dispute settlement.    
63. Article 7.11.3 provides that one Party may requ est the other to enter into negotiations on 
mutual recognition arrangements in services sector s not already subject to such disciplines under the 
Agreement.13  In the event that a Party accords recogniti on to a non-Party, it will upon request grant 
the opportunity for the other Party to negotiate a similar arrangement.  If a Party accords recognition 
autonomously, it will grant the opportunity for the other Party to demonstrate that education, experience, licenses or certifications obtained or requirements met should be recognized.  The 
Agreement's provisions on dispute settlement do not apply to disputes arising from the provisions of 
mutual recognition agreements.   
I. L
IBERALIZATION COMMITMENTS  
64. The schedules of commitments are contained in Annexes 7A and 7B for India and 
Singapore, respectively;  they are modelled on the GATS schedules with respect to the sectoral classification and the separation of sector specific and horizontal commitments, the latter applying to 
all sectors listed.  The schedules include limita tions and conditions on market access and national 
treatment, the undertakings relating to additiona l commitments and where appropriate, the time 
frame for implementation.  Article 7.8 provid es that a Party may modify or withdraw any 
commitment in its Schedule by giving three months a dvance written notification;  it must then enter 
into negotiations at the request of the other Party with a view to finding any compensatory adjustment.  If an agreement is not reached, th e case may be referred to dispute settlement in 
accordance with Chapter 15. 
65. Under Article 7.5, the Parties may negotia te commitments with respect to measures 
affecting trade in services not subject to schedu ling, including those regarding qualifications, 
standards or licensing matters.  In Article 7.9, th e Parties agree to review their schedules of specific 
commitments at least once every three years, or earlie r at the request of the other Party, with a view 
to eliminating substantially all remaining discrimin ation between the Parties in the services covered 
by the Agreement. 
66. In the Agreement there are separate a nnexes on financial services (7C) and 
telecommunications (7D), generally corresponding  to the respective GATS annexes and the 
Reference Paper on basic telecommunications.  Notabl y, paragraph 5 of the financial services annex 
contains expanded regulatory provisions re lated to transparency.  For example, 
each Party shall, to 
the extent practicable, make available in advance any regulations of general application relating to the supply of financial services that it proposes to adopt, provide interested persons and the 
other Party a reasonable opportunity to comment on such proposed regulations.
 
                                                      
12 According to the Parties, at the first CECA re view which was concluded on 1 October 2007, the 
Parties agreed to encourage these professional bodies to expedite negotiations view a view to completion by 
31 December 2007.  Such negotiations are still ongoing.   
13 Following the first CECA review, Singapore agreed to reduce, from two to one, the number of 
benchmark agencies for approval for the sale of Indian generic medicinal products in Singapore.  A mutual 
recognition agreement to this effect entered into force on 31 December 2007 .  With regard to the recognition 
of professional bodies, Singapore has recognized four additional Indian medical colleges with effect from 
1 October 2007.  WT/REG228/1/Rev.1 
 Page 19 
 
 
  1. Singapore  
(a) Horizontal commitments / exceptions 
67. Singapore and India have both included in the Agreement horizontal commitments and 
limitations which are not found in their respec tive GATS schedules.  For Singapore, under national 
treatment, modes 1 through 4 are unboun d for all subsidies and grants and any conditions attached to 
the receipt or continued receipt of such subsidies or grants. 
(b) Sector specific commitments / exceptions 
68. For business services, under the Agreement Singa pore has added under professional services 
limited commitments for legal consultancy services for Indian law, urban planning and the category 
of other professional services (not defined), w ith modes 1 and 3 unbound and no restrictions on 
mode 2 for market access, as well as more liberali zed commitments for integrated engineering and 
for midwives, nurses and physiotherapists.  For nearly all other professional services found in Singapore's GATS schedule, commitments are signi ficantly liberalized under the Agreement, 
typically with no market access restrictions for modes 1, 2, and 3.  Computer services are further liberalized, with expanded coverage compared to  the GATS.  Commitments on R&D, real estate, 
and rental/leasing services have been  added under the Agreement, and the coverage of other business 
services is greatly expanded.   
69. For communications services, commitments under the Agreement match Singapore's GATS 
commitments, both for telecommunications and audiovisual services.  New sectors added under the Agreement are distribution, covering commission ag ents, wholesale trade, retailing, and franchising 
services;  education services, covering secondary  and post-secondary technical and vocational 
education services, other higher education services, a dult education courses, and short-term training 
including English-language courses;  environmental services, excluding new environmental services;  
health and related social services, covering hospital services, ambulance services, and acute care hospitals, nursing homes and convalesc ent hospitals;  and other services not covered elsewhere, with 
commitments on washing, hairdressing and funeral services.   
70. For financial services, banking commitmen ts under the Agreement in many cases  match 
Singapore's GATS commitments.  Regarding the acceptance of deposits, up to a maximum of 
three bank licences with Qualifying Full Bank (QFB) pr ivileges may be granted to Indian banks with 
or without operations in Singapore.
14  Quantitative limits on the number of Wholesale Bank (WB) 
licences are removed for Indian banks with or wit hout operations in Singapore under the Agreement.  
For lending of all types, the mode 3 commitmen t states that financial institutions extending 
Singapore dollar (S$) credit facilities exceeding S$5 million per entity to non-resident financial 
entities or arranging S$ equity or bond issues for non-residents, must ensure that where the S$ 
proceeds are to be used outside Singapore, they ar e swapped or converted in to foreign currency upon 
draw-down or before remittance abroad.15  For participation in issues of securities, the mode 3 
commitment states that banks' and merchant ba nks' membership on any securities exchange or 
futures exchange established in Singapore must be held through subsidiaries incorporated in 
                                                      
14 According to the Parties, during the first CECA re view, the Parties agreed that the Reserve Bank of 
India and the Monetary Authority of Singapore would work out a timetable for the admission of the State Bank 
of India and ICICI Bank as Qualifying Full Banks in Singapore, and for the approval of the current applications for branch network expansion of DBS Bank (eight branches) and United Overseas Bank 
(one branch) into India as provided by Chapter 7 and its Annexes. 
15 Under Singapore's current GATS commitments, Singapore dollar loans by local and foreign-owned 
financial institutions, to non-residents, non-resident  controlled companies and to residents for use outside 
Singapore require MAS' prior approval. WT/REG228/1/Rev.1 
Page 20  
 
  Singapore.
16  In insurance, commitments under the Ag reement have been further liberalized, 
compared with Singapore's GATS schedule, with the 49% foreign equity limitation in mode 3 
removed for both life and non-life insurance.   
71. For tourism and travel related services, the sub-category of tourism and travel related 
services (not defined) is also committed under th e Agreement.  For recreational, cultural and 
sporting services, additional sub-sectors committed under the Agreement are entertainment services, 
archive services, museum services, parks services, other cultural services, and sporting and other recreational services (except gambling).   
72. For transport services, additional maritim e transport sub-sectors committed under the 
Agreement are international towage, classificati on societies, storage and warehousing, freight 
forwarding, and maintenance and repair of vessel s.  Additional transport sectors committed under 
the Agreement comprise internal waterways, coveri ng passenger and freight tran sportation, rental of 
vessels with crew, and pushing and towing services;  air transport, covering repair and maintenance, 
selling and marketing, and rental of aircraft with crew;  space transport;  rail transport, covering 
passenger and freight transportation, pushing a nd towing, maintenance and supporting services;  
road transport, covering rental services, freight tr ansportation, maintenance,  parking and supporting 
services;  and pipeline transport, covering transporta tion of fuels, and transportation of other goods;  
as well as the category of services auxiliary to all modes of transport except maritime transport services, covering storage and warehousing, and freight forwarding services.   
2. India 
(a) Horizontal commitments / exceptions  
73. For India, horizontal commitments and limitations under mode 3 not found in its 
GATS schedule are, for market access, that prio r Government approval shall be required where a 
joint venture or technology transfer/trademark agr eement existed in the ‘same’ field except in the 
case of investment by Venture Capital Funds registered with the Security & Exchange Board of 
India or where in the ‘existing’ joint venture invest ment by either of the parties is less than 3% or 
where the existing joint venture is defunct or sick.   
74. Under national treatment for mode 3, the fo llowing additional provisions apply under the 
Agreement:  for transfer of equity in an existing company to the investor of the other party where 
Security & Exchange Board of India (Substantia l Acquisition of Shares a nd Takeovers) Regulations, 
1997 as amended, are applicable;  repatriation of sale proceeds of immovable property is subject to 
prior approval by the Reserve Bank of India;  taxation laws for domestic and foreign service 
suppliers, under the provisions of the Income tax Act, 1961, shall apply;  and subsidies, where 
granted, shall be available onl y to domestic service suppliers. 
75. Applicable to market access and national treat ment, for both mode 4 and mode 3, is that 
access to Scheduled and Tribal Areas covered unde r the V and VI Schedule of the Constitution of 
India may be denied.   Additionally applicable to mode 4 is that special treatment may be provided to Scheduled Castes, Scheduled Tribes and weak er sections of society, as laid down in the 
Constitution of India as well as various legislation.   
                                                     
 
16 Under Singapore's current GATS commitments, foreign stockbroking companies can establish only 
as non-members of the Stock Exchange of Singapore (SES).  Non-members of SES can apply to become 
Approved Foreign Brokers (AFBs) of SES to trade di rectly in non-Singapore dollar denominated securities 
quoted on SES through terminals provided by SES to such AFBs.  WT/REG228/1/Rev.1 
 Page 21 
 
 
  (b) Sector specific commitments / exceptions 
76. For business services, India has GATS commitm ents in professional services only for 
engineering.  Under the Agreement, engineering is  further liberalized, while commitments have also 
been made for accountancy, taxation, architectural, integrated engineering, urban planning, medical 
and dental, veterinary and midwives, nurses and phys iotherapists.  Both computer and R&D services 
are further liberalized, with expa nded coverage compared to the GATS.  Commitments on real estate 
services and rental/leasing services have been a dded under the Agreement, while the coverage of 
other business services is greatly expanded.   
77. For communications services, the Agreemen t provides expanded coverage and fewer 
limitations compared to India's GATS commitments.  In voice telephony, the foreign equity limit is 
raised to 49%, from 21%.  For all sub-sectors, mo de 2 is unrestricted, compared to unbound under 
GATS.  Additional sub-sectors committed under th e Agreement are:  packet switched data 
transmission, V-Sat, radio paging, internet a nd infrastructural services.  Commitments for 
audiovisual services are unchanged under the Agreement compared with India's GATS schedule.   
78. For construction and related engineering services, the Agreement again provides 
significantly expanded coverage, a nd fewer limitations, compared to India's GATS commitments.  
New sectors added under the Agreement are dist ribution, covering both commission agents and 
wholesale trade;  recreational services, covering library, archive and sporting services;  and transport, with extensive commitments on maritime  transport and some on air transport, notably 
including international freight transport, together w ith maintenance and repair of aircraft.  In health 
services and tourism, coverage remains the sa me as under GATS, but with modes 1, 2 and 3 
significantly liberalized for hospital services and fully  liberalized for hotels and restaurants as well 
as for travel agencies and tour operators.   
79. For financial services, additional banking sub-sectors committed under the Agreement are 
money broking, and provision and transfer of financ ial information.  Under market access, each of 
the three Singapore banks named in Article 7.1(e) is limited to “one mode of presence” through (a) 
establishing not more than one wholly owned subsid iary or (b) operating through branches in India 
or (c) establishing a joint venture company in India,  to supply banking services in India.  For banks 
that operate as branches, fifteen branches over f our years for the three Singapore banks named in 
Article 7.1 (e) would be allowed.  In addition, FDI by Singapore ba nks is permitted in private sector 
banks subject to the condition that total invest ment (foreign direct investment and foreign 
institutional investment) shall not exceed 74% but su bject to the limitation of ‘one mode presence’.
17  
In insurance, coverage under the Agreement has b een significantly expanded, with the life insurance 
sub-sector added, and full coverage granted for non-life insurance (which under India's GATS 
commitments is limited to insurance of freight).   Under market access, the unbound limitation for 
mode 3 is replaced in the Agreement with a 26% fore ign equity limitation.  In addition, each of the 
three Singapore banks named in Article 7.1(e) is permitted to incorporate one insurance company. 
J. SAFEGUARD ACTIONS ON SERVICES TRADE AND INVESTMENT  
80. Article 7.14 prohibits the Parties from taking safeguard action against services and service 
suppliers of the other Party from the date of entry into force of the Agreement and agree to review 
                                                      
17 Not included under the Agreement is the national treatment requirement in India's GATS schedule 
that foreign banks are required to cons titute Local Advisory Boards consisting inter alia  of professionals and 
persons having expertise in areas such as small-scale in dustry and exports.  The Chairman and members of the 
Local Advisory Board must be resident Indian nationals except for the Chief Executive Officer who may be a foreign national.  The appointment of Chairman and members of the Board requires Reserve Bank of India 
approval. WT/REG228/1/Rev.1 
Page 22  
 
  the issue of safeguard measures in the context of developments in international fora of which both 
Parties are members.   
81. In the event of serious balance of payments and external financial difficulties or threat 
thereof, Article 7.17 permits the Parties to maintain or adopt restrictions on tr ade in services, while  
Article 6.7 permits the Parties to adopt or maintain  restrictions on payments or transfers related to 
investments.  Such measures are to be consistent with the Articles of Agreement of the IMF, avoid 
unnecessary damage to the commercial, economic and financial interests of the other Party, not 
exceed those necessary, be temporary and be applied on a national treatment basis.  Restrictions are subject to consultations between the Parties and to prompt notification. 
V. PROVISIONS AFFECTING TRADE IN GOODS, SERVICES AND INVESTMENT 
A. E-C
OMMERCE  
82. Chapter 10 contains the provisions applicable to e-commerce between the Parties.  Under 
Article 10.4, the Parties agree not to apply customs duties or other duties, fees or charges on or in 
connection with the import or export of digital products by electronic transmission.  The Parties also undertake to accord treatment no less favourable than  they accord to their own like digital products 
in respect of all measures affecting digital produc ts.  The provisions on e-commerce do not apply to 
government procurement, nor to measures affecting broadcasting, as defined by each Party under its 
domestic law, which may include webcasti ng, cablecasting and video on demand.  
B. I
NTELLECTUAL PROPERTY  
83. In Chapter 11 of the Agreement the Parties agree to cooperate on matters related to 
intellectual property and plant varieties.  Coopera tion may take the form of the organization of 
symposia, seminars, workshops and other traini ng programmes, and collaboration in projects to 
promote the effective use and application of intellectual property rights.18 
C. GOVERNMENT PROCUREMENT  
84. As stated above, in accordance with Article  7.20, the provisions of market access and 
national treatment do not apply to laws, regulations or re quirements governing government 
procurement in trade in services.  There are no pr ovisions in the Agreement relating to Government 
Procurement in trade in goods.   
D. SECTOR -SPECIFIC PROVISIONS OF THE AGREEMENT  
85. No sector-specific provision per se  exists in the Agreement. 
E. INSTITUTIONAL PROVISIONS OF THE AGREEMENT  
1. Exceptions and reservations 
86. Article 2.13 incorporates Articles XX and XXI of the GATT 1994 into the Agreement.    
                                                      
18 During the first CECA review, the Parties noted their intention to complete an Action Plan on 
bilateral cooperation by 31 December 2007.  The Acti on Plan will develop and promote mutually beneficial 
cooperation in the area of intellectual property rights through capacity building, human resource development 
and public awareness programmes.  WT/REG228/1/Rev.1 
 Page 23 
 
 
  2. Accession 
87. According to Article 16.4, the Agreement is  open to accession or association by any country 
or separate customs territory. 
3. Institutional framework 
88. Article 16.2 provides for the establishment of contact points to facilitate communication 
between the Parties.  Article 16.3 provides for the Par ties to meet within a year of the date of entry 
into force of the Agreement and then biennial ly or otherwise as appropriate to review the 
Agreement.  -The Parties may establish any workin g groups or committees on an ad hoc basis or 
otherwise to study and recommend appropriate measures to resolve any issues arising from the implementation or application of the Agreement a nd to consider, at either Party's request, fresh 
concessions or issues not already dealt with by the Agreement. 
4. Dispute settlement 
89. Chapter 15 sets out the procedures that apply to  the settlement of disputes relating to the 
application or interpretation of the Agreement.  In  the event that consultations between the Parties 
fail to settle the dispute an arbitral tribunal may be appointed.  The arbitral tribunal shall release its 
final report within 60 days of its formation.  Th e Parties should comply with the arbitral tribunal's 
award within a reasonable period of time.  The de tails of the dispute settlement provisions of the 
Agreement are outlined in Table V.1. 
Table V.1 
Synopsis of the Agreement's Dispute Settlement Provisions 
 Consultations  (Art. 15.3) 
Request for Arbitral Tribunal  (Art. 15.5) 
Composition  (Art 15.6) 
Rules of procedure  (Art. 15.8) 
Final Report issued  (Art. 
15.8.12) Reasonable period of time for 
Implementation of findings  
(Art. 15.11) Within 60 days, if consultations fail 
Appointment of Arbitral Tribunal 
(Art. 15.5) Within 30 days 
Within 60 days of formation of  
Arbitral Tribunal Final Report made public   (Art. 
15.8.12)Within 10 days after release to parties 
Within 45 days of release of repor t WT/REG228/1/Rev.1 
Page 24  
 
  5. Relationship with other agreements concluded by the Parties 
90. In Article 16.5 the Parties affirm their existi ng rights and obligations with respect to each 
other under existing bilateral and multilateral agreements to which they are both parties, including 
the WTO Agreement.  In the event of any inc onsistency between this Agreement and any other 
agreement to which both are parties, they agree to consult with each other to find a mutually 
satisfactory solution. 
91. Table V.2 lists the regional trade agreements  (RTAs), (notified and non-notified to the 
GATT/WTO and in force), as of January 2008 to which India and Singapore are parties.   
Table V.2  India and Singapore: Participation in other RTAs (notified and non-notified in force), January 2008  
GATT/WTO Notification Partner/ 
Agreement Date of 
entry  
into force Type of 
agreement Year WTO Provision 
INDIA  
Sri Lanka 01.03.00 Goods 2002 Enabling Clause 
SAPTA 07.12.95 Goods 1997 Enabling Clause 
GSTP 19.04.89 Goods 1989 Enabling Clause 
APTA (Bangkok Agreement) 17.06.76 Goods 1976 Enabling Clause 
Tripartite (Egypt, Yugoslavia)* 01.04.68 Goods 1968 Enabling Clause 
Chile  16.08.07 Goods Not notified 
Bhutan 29.07.06** Goods Not notified 
SAFTA 01.01.06 Goods Not notified 
Afghanistan 06.03.03 Goods Not notified 
Nepal 06.03.02** Goods Not notified 
SINGAPORE  
Trans-Pacific Strategic Economic Partnership 
(Brunei Darussalam, Chile, New Zealand) 28.05.06 Goods & Services 2007 GATT Art. XXIV & GATS Art. V 
Panama 24.07.06 Goods & Services 2007 GATT Art. XXIV & GATS Art. V 
Republic of Korea 02.03.06 Goods & Services 2006 GATT Art. XXIV & GATS Art. V 
Jordan 22.08.05 Goods & Services 2006 GATT Art. XXIV & GATS Art. V 
United States 01.01.04 Goods & Services 2003 GATT Art. XXIV & GATS Art. V 
Australia 28.07.03 Goods & Services 2003 GATT Art. XXIV & GATS Art. V 
EFTA 01.01.03 Goods & Services 2003 GATT Art. XXIV & GATS Art. V 
Japan 30.11.02 Goods & Services 2002 GATT Art. XXIV & GATS Art. V 
New Zealand 01.01.01 Goods & Services 2001 GATT Art. XXIV & GATS Art. V 
AFTA 28.01.92 Goods 1992 Enabling Clause 
GSTP 19.04.89 Goods 1989 Enabling Clause 
 
Source: WTO Secretariat  
 
SAPTA Members are Bangladesh, Bhutan, Maldives, Nepal, Pakistan, Sri Lanka 
APTA Members are Bangladesh, China, Republic of Korea, Laos, Sri Lanka 
AFTA Members are Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Thailand, Vietnam 
 
* Inactive 
 ** Date of Renewal 
 
 
 
  WT/REG228/1/Rev.1 
 Page 25 
 
 
  ANNEX 
 
Indicators of trade liberalization under the Agreement  
 
 
1. A comparison between the scheduled elimination of tariffs applied to the Parties' mutual 
imports and the duty rates applied by India and Singapore to MFN imports is shown in Tables A.1 
(India) and A.2 (Singapore) below, according to agricultural, non-agricultural and total products.  
Applied MFN duty rates in 2005 serve as a basis for the comparison. 
2. India  has a variable MFN tariff structure.  Its (unweighted) average MFN rate (2006) is 
17.0% on all goods, with a higher average tariff applied to agricultural goods than to 
non-agricultural products.  Only 2.7% of India's tari ff lines are duty-free at an MFN level.  On entry 
into force, Singapore's exporters enjoyed a relative margin of preference of 10.2% on non-agricultural products vis-à-vis  the prevailing average MFN tari ff in 2006, and a relative margin 
of preference of 1.3% in agricultural goods.   
Table A.1  
India:  Indicators of MFN tariff rates and preferential rates for imports from Singapore 
ALL PRODUCTS Agricultural productsa Non agricultural products 
Average applied 
tariff Average applied tariff Average applied tariff Origin 
of 
goods Year 
Overall 
(%) On 
dutiableb 
(%) Share of 
duty-free 
tariff lines
(%) Overall 
(%) On 
dutiableb 
(%) Share of 
duty-free 
tariff lines
(%) Overall 
(%) On 
dutiableb 
(%) Share of 
duty-free 
tariff lines
(%) 
MFN 2006 17.0 17.5 2.7 35.0 36.1 3.1 14.5 14.9 2.6 
Singapore 2006 15.7 16.5 4.9 34.5 35.6 3.1 13.0 13.7 5.1 
 2007 14.7 15.4 4.9 34.1 35.1 3.1 11.9 12.5 5.1 
 2008 13.5 14.2 4.9 33.5 34.6 3.1 10.6 11.2 5.1 
 2009 12.3 16.1 23.6 33.0 36.9 10.5 9.3 12.5 25.5 
a WTO definition. 
b "on dutiable" excludes duty-free tariff lines. 
Source:  Data provided by the Indian authorities. 
 
3. Singapore's  tariff structure is duty free on an MFN basis for all but six tariff lines.  These 
lines are liberalized upon entry into force of th e Agreement, resulting in complete duty-free 
treatment for India's exports to Singapore. 
Table A.2  
Singapore:  Indicators of MFN tariff rates a nd preferential rates for imports from India 
ALL PRODUCTS Agricultural productsa Non agricultural products 
Average applied 
tariff Average applied tariff Average applied tariff Origin 
of 
goods Year 
Overall 
(%) On 
dutiableb 
(%) Share of 
duty-free 
tariff lines
(%) Overall 
(%) On 
dutiableb 
(%) Share of 
duty-free 
tariff lines
(%) Overall 
(%) On 
dutiableb 
(%) Share of 
duty-free 
tariff lines
(%) 
MFN 2006 0.0 0.0 99.9 0.0 0.0 99.5 0.0 0.0 100.0 
India 2006 0.0 0.0 100.0 0.0 0.0 100.0 0.0 0.0 100.0 
a WTO definition. 
b "on dutiable" excludes duty-free tariff lines. 
Source:  Data provided by Singapore authorities. 
 WT/REG228/1/Rev.1 
Page 26  
 
  4. Table A.3 shows the market access opportunities in Singapore for India's top 25 exports, 
which in 2003-2005 accounted on average for 43.1% of  India's global exports.  The table shows at 
which year all HS 8-digit tariff lines corresponding to  the product definition (i.e. applying to the 
6-digit HS code used to capture the volume of trade) will become duty-free in Singapore. 
5. India's top 25 exports cover a total of 128 HS 8-digit tariff lines in Singapore's tariff 
schedule.  All of these products were already subject to duty-free MFN rates. 
Table A.3 
Market access opportunities in Singapore und er the agreement, for India's top 25 exports 
Source:  Data provided by Singapore authorities, and UNSD, Comtrade Database. 
 
6. Like Table A.3, Table A.4 shows the market access opportunities in India for Singapore's 
top 25 exports (at the HS 6-digit level), which accounted on average for 59% of Singapore's exports 
to the world in 2003-05.  The table shows in which year all HS 8-digit tariff lines corresponding to 
the product definition (i.e. applying to the 6-digit HS code used to capture the volume of trade) will 
become duty-free in India.   
7. Singapore's top 25 exports cover a total of 108 HS 8-digit tariff lines in India's tariff 
schedule.  Fourteen of Singapore's top 25 exports (which account for 57 HS 8-digit lines and 40.4% 
of Singapore's average global exports in the pe riod 2003-05) already benefit from zero MFN duties 
in India's market, one product (accounting for 0. 5% of Singapore's average global exports) gains India's top export products in 2003-05 Access Conditions to Singapore's import 
markets 
Number of tariff lines 
HS number and description of the product Share in 
global 
exports 
(%) Average 
MFN 
applied rate 
(%) Duty-free Dutiable 
710239 Diamonds, non-industrial other than unwkd./simply 
sawn/cleaved/bruted 11.9 0.0 1 0 
271019 Petroleum oils & oils obt. from bituminous mins. (excl. 
crude) & preps.  6.5 0.0 18 0 
711319 Articles of jewellery & parts thereof , of oth. precious metal  3.3 0.0 2 0 
260111 Iron ores & concs. (excl. roasted iron pyrites) 2.9 0.0 1 0 
271011 Light petroleum oils & preps. 2.2 0.0 14 0 
294200 Organic comps. n.e.s. in Ch.29 1.6 0.0 1 0 
100630 Semi-milled/wholly mill ed rice, whether or not 
polished/glazed 1.5 0.0 14 0 
300490 Medicaments (excl. of 30.02/30.05/30.06)  1.4 0.0 29 0 
610910 T-shirts, singlets & oth. vests, knitte d or crocheted, of  cotton 1.1 0.0 2 0 
030613 Shrimps & prawns, whether or not in shell, frozen 1.0 0.0 1 0 
620630 Women's/girls' blouses, shirts  & shirt-blouses (excl. knitted 
or crocheted) 1.0 0.0 1 0 
721049 Flat-rolled prods. of iron/non- alloy steel, of a width of 
600mm/more 0.9 0.0 2 0 
230400 Oil-cake & oth. solid residues, whether or not ground/in 
pellets 0.9 0.0 1 0 
630492 Textile furnishing arts. other than bedspreads (excl. of  94.04) 0.8 0.0 4 0 
620520 Men's/boys' shirts (excl. knitted or crocheted), of cotton 0.8 0.0 1 0 
999999 Commodities not specified according to kind 0.8   0 
870899 Parts & accessories of the motor vehicles of 87.01-87.05, 
n.e.s. in 87.06-8  0.7 0.0 11 0 
080132 Cashew nuts, shelled 0.6 0.0 1 0 
630790 Other made-up textile arts., incl. dress patterns, n. e.s. 0.6 0.0 6 0 
740311 Cathodes & sections of cathodes, of ref. copper, unwrought 0.5 0.0 1 0 
970190 Collages & sim. decorative plaques 0.5 0.0 3 0 
020230 Meat of bovine animals,  frozen, boneless 0.5 0.0 1 0 
610510 Men's/boys' shirts, knitted or crocheted, of co tton 0.5 0.0 1 0 
380810 Insecticides, put up in forms or packings-RS/as preps./arts. 0.5 0.0 9 0 
711719 Imitation jewellery, of  base metal 0.4 0.0 3 0 
Total of above 43.1  128 0  WT/REG228/1/Rev.1 
 Page 27 
 
 
  immediate duty-free access and seven products are granted duty-free access in 2009.  Seven of 
Singapore's top 25 export products remain subject to duties.  The margin of preference granted to 
Singapore by India under the Agreement varies from 0 to 12.2 percentage points. 
Table A.4 
Market access opportunities in India  under th e Agreement, for Singapore's top 25 exports  
Access Conditions to India's import markets 
Singapore's top export products in 2003-05 
MFN Duty-free in: Remain 
Number of tariff 
lines 
2006 
2009 Dutiable 
HS number and description of the product Share 
in 
global 
exports 
(%) Average 
MFN 
applied 
rate 
(%) Duty-
free Dutiable Number of tariff lines 
854229 Monolithic integrated circuits, other than 
digital 12.2 0.0 2 0    
271019 Petroleum oils & oils obt. from bituminous 
mins. (excl. crude) & preps.  6.6 10.0 0 9   9 
847330 Parts & accessories (excl. covers, carrying 
cases and the like)  6.5 0.0 9 0    
847170 Storage units (of auto. data processing 
machines) 5.5 0.0 8 0    
854221 Monolithic integrated circu its, digital 5.4 0.0 1 0    
999999 Commodities not specified according to kind 3.4  0 0     
271011 Light petroleum oils & preps. 3.2 10.0 0 6   6 
852520 Transmission app. for radio-telephony/radio-
telegraphy/radio-broadcasting 2.9 0.0 11 0    
854260 Hybrid integrated circuits 2.0 0.0 1 0    
854290 Parts of the electronic integrated circuits & 
microassemblies of 85.42 1.4 0.0 1 0    
852990 Parts suit. for use solely/princ. with the app. 
of 85.25-85.28 1.0 15.0 0 3 2 1  
847160 Input/output units (of auto. data processing 
machines) 1.0 0.0 14 0    
843143 Parts suit. for use solely/princ. with the 
boring/sinking mach. of 8430.41 0.9 15.0 0 2   2 
847180 Automatic data processing machine units 
(excl. of 8471.50-5471.70) 0.9 0.0 1 0    
293090 Organo-sulphur comps.  
(excl. of 2930.10-2930.40) 0.7 15.0 0 9 8  1 
292250 Amino-alcohol-pheno ls, amino-acid-phenols 
& oth. amino-comps. with oxygen  0.7 15.0 0 10  10  
853690 Electrical app. for switching/protecting 
electrical circuits 0.7 15.0 0 4 1  3 
852491 Recorded media for repr. phenomena other 
than sound/image 0.7 0.0 5 0    
854129 Transistors (excl. photosensitiv e transistors) 0. 6 0.0 1 0    
853400 Printed circuits 0.5 0.0 1 0    
880330 Parts of aeroplanes/helicopters, other than 
propellers, rotors 0.5 3.0 0 1 1   
854190 Parts of the devices of 85.41 0.4 0.0 1 0    
854110 Diodes (excl. photosensitive/light emitting 
diodes) 0.4 0.0 1 0    
870899 Parts & accessories of the motor vehicles of 
87.01-87.05 0.4 15.0 0 1   1 
293329 Heterocyclic comps. cont. an unfused 
imidazole ring  0.4 15.0 0 6   6 
Total of above 59.0  57 51 12 11 28 
Source: Data provided by India and Singapore authorities. 
 
__________