Eu-Asean Trade and Investment 14 Eu-Asean Trade in Goods 14 Eu-Asean Trade in Services 20 Eu-Asean Fdi 21
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Trade SOURCES EUROPEAN COMMISSION, DG TRADE EUROSTAT TABLE OF CONTENTS MESSAGE FROM THE EU TRADE COMMISSIONER 4 MESSAGE FROM THE EU AMBASSADOR 5 THE GLOBAL PERSPECTIVE : EU TRADE AND INVESTMENT WITH THE REST OF THE WORLD 6 EU TRADE IN GOODS WITH THE WORLD 7 EU TRADE IN SERVICES WITH THE WORLD 10 EU OUTWARD AND INWARD FDI STOCK 12 THE REGIONAL PERSPECTIVE: EU-ASEAN TRADE AND INVESTMENT 14 EU-ASEAN TRADE IN GOODS 14 EU-ASEAN TRADE IN SERVICES 20 EU-ASEAN FDI 21 THE BILATERAL PERSPECTIVE: EU-SINGAPORE TRADE AND INVESTMENT TIES 22 EU-SINGAPORE TRADE IN GOODS 22 EU-SINGAPORE TRADE IN SERVICES 26 EU-SINGAPORE BILATERAL INVESTMENT TIES 28 INVESTMENT HIGHLIGHTS 2014 – SINGAPORE INVESTMENTS IN THE EU 30 INVESTMENT HIGHLIGHTS 2014 – EU INVESTMENTS IN SINGAPORE 31 EU BUSINESS AVENUES: PARTNERING GROWTH IN SOUTHEAST ASIA 32 3 MESSAGE FROM THE EU TRADE COMMISSIONER Today, the European Union (EU) is the world’s tion and facilitating freer movement of goods, largest economy. Trade has always been cen- services, capital and labour between the ten tral to this achievement and at the heart of countries. our prosperity. The commercial and political ties between the EU and its partners, which have Singapore has long been a key partner for Eu- grown strong over many centuries, have helped rope. As one of the most liberalised economies the EU become the most important trading in the world, its status as a trading hub for the partner and the world’s biggest investor and region has been positively reinforced by its recipient of foreign direct investments. The EU thriving economy, dynamic business environ- endeavours to promote free trade at home and ment and open market. The growing number abroad, creating a level playing field so that of EU investments in Singapore is a strong everyone can enjoy the benefits that this sys- testament to its continued adherence to these tem can bring, such as jobs and growth. policies. In this respect, the close relationship between the With Singapore the EU has negotiated one of its EU and ASEAN is of vital importance. The rise of most ambitious trade deals to date. Addressing Asia is possibly the most important economic not only tariffs but also non-tariff barriers to and political story of our times and the ten coun- trade such as technical standards and regula- tries of ASEAN are playing a central part in it. tory issues, I am sure that the new trade en- vironment we have created will greatly benefit ASEAN is the EU’s third largest trading part- the EU, Singapore and the wider region. As we ner outside of Europe, while the EU is ASEAN’s negotiate other agreements throughout ASEAN, second trading partner after China. The EU is we hope that these activities will foster closer also by far the biggest source of foreign direct economic integration, bringing our two regions investment in ASEAN. This close bond that we still closer to each other. maintain through trade and investment means that we have a responsibility to work towards CECILIA MALMSTRÖM deepening our ties. The EU considers the ASEAN EU Trade Commissioner Economic Community (AEC) as an important step towards increasing connectivity in South 4 East Asia, fostering deeper economic integra- MESSAGE FROM THE EU AMBASSADOR The EU Delegation to Singapore has served to the preferred choice for companies entering this enhance bilateral ties between the EU and the vibrant region. The European Chamber of Com- City-State since opening its doors in 2003. Playing merce and the National Business Groups play an an important role in Singapore for over 10 years, important role in supporting business presence it also actively promotes EU relations with ASEAN. in the city state. Each year, the continued strength of the econom- ic relationship that we enjoy with Singapore is To complement the FTA, the EU launched the EU highlighted in the Trade & Investment Booklet Business Avenues to South East Asia programme published by the Delegation. While presenting in Singapore last October. Modelled on the suc- a comprehensive narrative of the EU’s consist- cessful business support programmes in Japan ent strength in the global economy, this booklet and Korea, this initiative will bring 1,000 European showcases EU-Singapore trade and investment SMEs to the region over the next five years, cre- relations, as well as those between the EU and ating business links with local counterparts and ASEAN on a region-to-region basis. fostering economic ties. The EU continues to be one of the most impor- 2015 will be an important year for Singapore, tant trade and investment partners for Singapore. as the City-State marks its 50th anniversary of Concluded in October 2014, the Investment Chap- independence. I look forward to the additional ter of the EU-Singapore Free Trade Agreement activities and celebrations, which I am sure will completes the text and paves the way for its rat- give even more impetus to ongoing engagement ification. Once in force, this Agreement will pro- between and among the European and Singapo- vide additional benefits to EU actors operating rean business communities. in Singapore, especially those providing services and investing here. Additionally, it will enhance the This booklet is a tool which I hope will provide EU’s economic diplomacy in ASEAN, as Singapore better understanding of the progress, impact and plays an increasingly important role as ‘hub’ for potential of EU-Singapore economic relations and the wider South East Asian region. hope that it can be used as a valuable reference. With over 10,000 EU companies operating in Sin- DR MICHAEL PULCH gapore, its open trading system, good governance Ambassador / Head of the European Union and businessfriendly environment, often make it Delegation to Singapore 5 THE GLOBAL PERSPECTIVE : EU TRADE AND INVESTMENT WITH THE WORLD More than ever, trade and investment flows EU TRADE IN GOODS play a pivotal role in the health of the global WITH THE WORLD economy. They are a stabilising source of growth and support millions of jobs across In 2014 the EU remained the largest Single the world. In the EU alone, some 31 million Market and trading block in the world with jobs – or over 14% of employment – de- over €1,700 billion in exports and €1,680 pend on international trade. This figure is billion in imports. The EU accounted for up by two thirds, or 12.5 million, since 1995 around 15% of world trade in goods, ahead thanks to the expansion of the EU’s exports of China, the United States and Japan. and investments and the growth of global trade. EU28 exports of goods to the rest of the world are concentrated in a few sectors. The EU remains a powerful force in global Machinery and transport equipment make trade and investment but has to adapt to a up the lion’s share of EU exports, with 41.6% new environment where economic growth of total export value, followed by manu- in the coming years is to a large degree factured goods and articles (22.7%) and generated outside the EU. This means that chemicals and related products (16.4%). international trade’s contribution to growth Together, goods in these categories made and jobs in the EU is set to increase. The up over 80% of EU exports in 2014. The top EU must build strong links with emerging three destination countries for EU exports centres of global growth, such as ASEAN, if in 2014 were the United States, China and it is to benefit from this growth. Switzerland. Singapore is the 17th most important export market for EU goods and the 22nd most important source of imports into the EU. If trade in goods and services are taken together, Singapore is the EU’s 12th most important trade partner, ahead of Hong Kong and Australia. 6 EU28 EXPORTS TO THE WORLD, 2014 EU28 IMPORTS FROM THE WORLD, 2014 SHARE PARTNER VALUE PARTNER VALUE SHARE TOTAL COUNTRIES (€ bn) COUNTRIES (€ bn) TOTAL (%) (%) China 302.6 18.0 USA 310.8 18.3 USA 204.8 12.2 China 164.7 9.7 Russia 181.8 10.8 Switzerland 140.3 8.2 Switzerland 96.6 5.7 Russia 103.3 6.1 Norway 83.9 5.0 Turkey 74.6 4.4 Japan 54.6 3.2 Japan 53.3 3.1 Turkey 54.3 3.2 Norway 50.2 2.9 South Korea 39.0 2.3 South Korea 43.1 2.5 United Arab India 37.1 2.2 42.8 2.5 Emirates Brazil 31.2 1.9 Brazil 36.9 2.2 Algeria 29.4 1.7 India 35.5 2.1 Saudi Arabia 28.8 1.7 Saudi Arabia 35.1 2.1 Nigeria 28.2 1.7 Hong Kong 34.7 2.0 Canada 27.4 1.6 Canada 31.7 1.9 Kazakhstan 23.9 1.4 Australia 29.6 1.7 Taiwan 23.2 1.4 Mexico 28.5 1.7 Vietnam 22.1 1.3 Singapore 28.2 1.7 Malaysia 19.7 1.2 Algeria 23.4 1.4 Thailand 18.5 1.1 South Africa 23.3 1.4 South Africa 18.4 1.1 Morocco 18.2 1.1 Mexico 18.2 1.1 TOTAL EXPORTS Singapore 16.6 1.0 1,702.7 100.0 (all countries) TOTAL IMPORTS 1,680.2 100.0 (all countries) EU28 imports of goods from the rest of the world showed a similar sectorial distribution with machinery and transport equipment accounting for 26.8% of total value of imported goods, followed by mineral fuels, lubricants and related materials (26.4%) and manufactured goods and articles (24.3).