Singapore-EAC FTA Proposed

by Mary Swire, Tax-News.com, Hong Kong

20 January 2010

The Prime Minister of Kenya, Raila Odinga, and Singapore’s Prime Minister, Lee Hsien Loong, have both welcomed the expansion of bilateral trade between the two countries, and discussed a free trade agreement (FTA) between the East African Community (EAC) and Singapore.

The FTA with the EAC (which is formed of Kenya, Tanzania, Uganda, Rwanda and Burundi) was, in fact, proposed by Raila Odinga, and was welcomed by Lee Hsien Loong.

Singapore has many FTAs, or similar trade agreements, with various trading partners, particularly under the aegis of its participation within the framework of the Association of Southeast Asian Nations (ASEAN), and with China, India and Australia.

The EAC, with its customs union fully operative from January 1, 2010, is currently looking to enable its partner states to take advantage of export markets under the US African Growth and Opportunity Act, now that the EAC has signed a trade and investment framework agreement with the US.

Lee Hsien Loong also welcomed Kenya's interest in learning from Singapore's development experience in several areas. In this context, both Prime Ministers witnessed the signing of a memorandum of understanding between the two countries on technical cooperation in various areas, including the development of public housing, special economic zones, ports, and e-government. In addition, they witnessed the signing of an air services agreement between the two countries.

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