A no-deal Brexit will not ‘fundamentally impair’ trade between the UK and Singapore: MTI

"Ministry of Trade and Industry’s assessment is that trade between the UK and Singapore will not be fundamentally impaired," said its MTI minister.

Singapore's trade minister Chan Chun Sing Source: Bloomberg

Bilateral trade between the United Kingdom (UK) and Singapore is unlikely to be ‘fundamentally impaired’, even if a no-deal Brexit happens to the UK, said the Singapore minister for trade and industry (MTI) Chan Chun Sing in a response to a question during parliament on Monday.

Mr Chan was responding to a question from member of parliament Desmond Choo, who had asked how Singapore would be hit by a no-deal Brexit. Mr Choo also queried on how Brexit will affect the ratification and implementation of the European Union-Singapore Free Trade Agreement (EUSFTA).

Attributing the substantial trade and investment linkages between Singapore and the UK, with the many businesses operating in the other's markets across sectors such as pharmaceuticals, professional services and consumer goods, Mr Chan commented: "MTI’s assessment is that trade between the UK and Singapore will not be fundamentally impaired."

Even so, a no-deal Brexit could weigh on consumer and business sentiments in the UK and EU, with potential negative effects on global growth, he admitted.

Singapore is prepared to work with the UK to apply for the EUSFTA in a UK-Singapore context, which could form the basis of a future trade agreement between both countries, Mr Chan said. The ratification of the EUSFTA and EU-Singapore Investment Protection Agreement (EUSIPA) is on track and is not affected by Brexit, he added.

The UK is an important economic partner of Singapore, and Singapore is keeping a ‘close watch on Brexit’, just as other countries are, Mr Chan said.

Britain’s divorce deal from the EU remains set for March 29th, this year.

Maybe scenarios for Brexit, suggests Singapore’s MTI minister

A scenario which offers the greatest predictability and stability while minimizing disruption to businesses would be an agreement on a withdrawal, with an implementation period lasting till December 31st, 2020, Mr Chan suggested. Within this period, the UK will continue to be functionally treated as an EU member state and remain as a party to the EU’s international agreements, he said.

Another scenario that could pan out would be the postponement of UK’s formal departure from the EU. In this case, the prospect of an imminent no-deal Brexit would be diminished, though there may be a period of continued uncertainty, said Mr Chan.

A third scenario could be a ‘hard brexit’ or a no-deal situation, in which the UK will no longer be a party to the EU’s agreements with third countries after the deadline. The EUSFTA will then no longer apply between the UK and Singapore, said Mr Chan, but he added that the change ‘would not impact our trading relationship with the UK as the current tariff and non-tariff regime for Singapore companies trading with the UK are based on World Trade Organization terms which would continue to apply’.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Trading around Brexit

As we fast approach 31 October, find out how the UK’s exit from the EU continues to affect traders, and discover:

  • How you can profit from Brexit
  • The markets you should be watching
  • Brexit trading strategies for key assets

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Bid
Offer
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Bid
Offer
-
-
China 300
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.