Singapore Merlion
IN PHOTO: The Marina Bay Sands casino construction site is seen from the Merlion Park in Singapore May 1, 2008 Reuters/stringer

Negotiations for FTA between Singapore and the European Union (EU) have concluded. The upcoming FTA will be unique as it will be the first of its kind between the EU and an ASEAN country.

Tax News reported that both European Union and Singapore jointly announced the completion of negotiations on the FTA with the final stage of talks held on last Friday centring around the investment protection pact. The negotiations on the FTA started in March 2010 and a text was initialed in September 2013.

According to Karel De Gucht, EU Trade Commissioner, the conclusion of Investment protect chapter marked an important step in the partnership with Singapore and a boost for investment relations between EU and that country.

Investment Protection

Under the investment protection chapter, both EU and Singapore will ensure a stable and fair regime for foreign investors, while preserving the right of the parties for regulation in the interest of the public. Under the FTA, EU exporters will be granted immediate duty-free access to the Singaporean market for all products. From the EU side, all tariffs will be eliminated under a five-year time frame and will benefit Singaporean exporters of electronics, pharmaceuticals, chemicals, and processed foods.

Singapore is EU's 15th largest global trading partner and fifth largest Asian trading partner as of 2013. De Gucht said: "This agreement sends a positive signal to all ASEAN partners and will pave the way for comprehensive trade agreements with other countries in that region."

Presidents Visits UK

Meanwhile, the Singapore president hailed the bond and friendship between Singapore and the U. K. The visiting president said the relation has endured and strengthened over the years. President Tony Tan Keng Yam is on a state visit to the U.K.

Tan said the British Parliament that, "We are friends in all types of weather, whether it is British or Singapore weather". His state visit comes on the cusp of Singapore's 50th year of independence in 2015.

The President said, "Our friendship will undoubtedly prove valuable in the face of emerging global challenges and impact the future generations of both countries," Strait Times reported.

On Tuesday, U.K's trade minister Lord Livingston gave the opening speech at the "UK and Singapore Innovating Together for the 21st Century" business event at the Royal Society in London. Singapore accounts for half of all U.K. exports to the South East Asian region and Britain attracts bulk of all Singaporean investment in the EU.

New Deals

The UK-Singaporean partnerships are covering a lot of areas including business, culture, entertainment and technology.

Some of the recent deals with the U.K. include: Madame Tussaud's Singapore to be opened in Sentosa on October 25, this year. British Airways inducting Airbus A380 to its Singapore route from next week, with extra 1,020 seats a week in the sector and Lloyds Banking planning to make Singapore its Asian hub for all its commercial banking activities.