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Shri Kamal Nath, Union Minister of Commerce & Industry, has said that the Comprehensive Economic Cooperation Agreement (CECA) between India and Singapore is a path breaker and a model as it incorporates agreements in Goods, Services and Investments; in fact, it has 16 different chapters dealing with a large number of sectors in great detail. It is also the first time that India is entering into any kind of bilateral agreement in Services, the Minister said while addressing the luncheon meeting with the Singapore Prime Minister, Mr. Lee Hsien Loong, here today, which was organised jointly by the Federation of Indian Chambers of Commerce & Industry (FICCI), Confederation of Indian Industry (CII) and Associated Chambers of Commerce and Industry (ASSOCHAM). “Through CECA, I am confident that bilateral trade will cross 10 billion dollars in two or three years”, he said. At present, two-way trade between India and Singapore is US $ 6.4 billion
Shri Kamal Nath noted that CECA would be instrumental in developing supply chains from India, through Singapore, to many other countries in the world. “Singapore is a global trading hub, indeed, perhaps the first and most successful international trading hub of the world. The CECA agreement on Goods is based on the premise that an enormous synergy can be activated between the huge manufacturing base of India and the exciting trading interface that Singapore has with the global market-place…Mutual Recognition Agreements in Goods would substantially increase these exports in dairy and poultry related activities, and we believe that the benefits of CECA will thus percolate down to our agricultural hinterland. Similarly Mutual Recognition Agreements in Service means increased interaction in various Services sectors; this would improve efficiency in our economy, and at the same time provide new avenues to Indian professionals”, Shri Kamal Nath said.
Referring to financial services, the Minister emphasised that with a greater interaction of banking systems and financial companies of the two countries, there would be greater facilitation in business, commerce, trade and investment. Facilitating professional interaction between the two countries would not only bring economic advantage to both countries, but also help in cementing people-to-people contacts, and help in the exchange of technology. Observing that Singaporean investments in India had more than doubled during last year, he said that a great deal of interest had been generated in Singapore, particularly in infrastructure projects, Special Economic Zones (SEZs) and construction and development sectors. The Minister predicted a substantial increase in investments from Singapore into India, and said that both our countries would gain enormously from this arrangement.
Shri Kamal Nath said sufficient safeguards have been built into the Agreement to prevent possible misuse of the provisions of CECA. “We have strict but practical Rules of Origin which require not only a value addition of 40% but also a change in tariff heading and fulfilment of certain well defined sufficient manufacturing operations”, he said, adding that such measures would go a long way in reassuring the business communities in both the countries.
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