RESTRICTED WT/TPR/S/343 7 June 2016 (16-3050) Page: 1/83 Trade Policy Review Body TRADE POLICY REVIEW REPORT BY THE SECRETARIAT SINGAPORE This report, prepared for the seventh Trade Policy Review of Singapore, has been drawn up by the WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing the World Trade Organization), sought clarification from Singapore on its trade policies and practices. Any technical questions arising from this report may be addressed to Thomas Friedheim (Tel: 022 739 5083), Masahiro Hayafuji (Tel: 022 739 5873), and Nelnan Koumtingué (Tel: 022 739 6252). Document WT/TPR/G/343 contains the policy statement submitted by Singapore. Note: This report is subject to restricted circulation and press embargo until the end of the first session of the meeting of the Trade Policy Review Body on Singapore. This report was drafted in English. WT/TPR/S/343 • Singapore - 2 - CONTENTS SUMMARY ........................................................................................................................ 5 1 ECONOMIC ENVIRONMENT .......................................................................................... 8 1.1 Recent Economic Developments................................................................................... 8 1.2 Trade Performance ................................................................................................... 10 1.3 Foreign Direct Investment (FDI) ................................................................................. 14 2 TRADE AND INVESTMENT REGIME ............................................................................ 15 2.1 General Framework .................................................................................................. 15 2.2 Trade Policy Objectives ............................................................................................. 15 2.3 Trade Agreements and Arrangements .......................................................................... 16 2.3.1 WTO .................................................................................................................... 16 2.3.2 Regional and preferential agreements ....................................................................... 16 2.3.2.1 ASEAN ............................................................................................................... 18 2.3.2.2 Costa Rica .......................................................................................................... 18 2.3.2.3 Gulf Cooperation Council ...................................................................................... 19 2.3.2.4 The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei) .............................................................................................................. 20 2.3.2.5 European Union .................................................................................................. 20 2.3.2.6 Turkey .............................................................................................................. 21 2.3.2.7 Trans-Pacific Partnership Agreement (TPP) ............................................................. 21 2.3.3 Other agreements and arrangements ........................................................................ 21 2.4 Investment Regime .................................................................................................. 22 3 TRADE POLICIES AND PRACTICES BY MEASURE ........................................................ 24 3.1 Measures Directly Affecting Imports ............................................................................ 24 3.1.1 Customs procedures and requirements ..................................................................... 24 3.1.2 Customs valuation ................................................................................................. 26 3.1.3 Rules of origin ....................................................................................................... 27 3.1.4 Tariffs .................................................................................................................. 27 3.1.5 Internal taxes ....................................................................................................... 28 3.1.5.1 Goods and services tax (GST) ............................................................................... 28 3.1.5.2 Excise duties ...................................................................................................... 29 3.1.6 Import prohibitions, restrictions, and licensing ........................................................... 30 3.1.7 Anti-dumping, countervailing, and safeguard measures ............................................... 33 3.2 Measures Directly Affecting Exports ............................................................................. 33 3.2.1 Export procedures and requirements ........................................................................ 33 3.2.2 Export taxes, charges, and levies ............................................................................. 33 3.2.3 Export prohibitions, restrictions, and licensing ............................................................ 33 3.2.4 Export finance, insurance, and guarantees ................................................................ 35 3.2.5 Export assistance ................................................................................................... 35 3.2.6 Free trade zones .................................................................................................... 37 WT/TPR/S/343 • Singapore - 3 - 3.3 Measures Affecting Production and Trade ..................................................................... 38 3.3.1 Subsidies .............................................................................................................. 38 3.3.2 Standards and other technical requirements .............................................................. 39 3.3.3 Sanitary and phytosanitary requirements .................................................................. 40 3.3.4 Competition policy ................................................................................................. 42 3.3.5 Price controls ........................................................................................................ 43 3.3.6 State trading and state-owned enterprises ................................................................ 44 3.3.7 Government procurement ....................................................................................... 45 3.3.8 Intellectual property rights ...................................................................................... 46 4 TRADE POLICIES BY SECTOR ..................................................................................... 50 4.1 Manufacturing .......................................................................................................... 50 4.2 Services .................................................................................................................. 52 4.2.1 Financial services ................................................................................................... 52 4.2.1.1 Banking services ................................................................................................. 55 4.2.1.2 Insurance .......................................................................................................... 58 4.2.2 Telecommunications services ................................................................................... 59 4.2.3 Postal services ...................................................................................................... 61 4.2.4 Transport services ................................................................................................. 62 4.2.4.1 Maritime transport .............................................................................................. 62 4.2.4.2 Air transport ....................................................................................................... 65 4.2.5 Professional services .............................................................................................. 67 4.2.5.1 Legal services ..................................................................................................... 67 4.2.5.2 Accountancy services ........................................................................................... 68 REFERENCES .................................................................................................................. 71 5 APPENDIX TABLES .................................................................................................... 72 CHARTS Chart 1.1 Product composition of merchandise trade, 2011 and 2014 ...................................... 11 Chart 1.2 Direction of merchandise trade, 2011 and 2014 ...................................................... 12 TABLES Table 1.1 Selected macroeconomic indicators, 2011-15 .......................................................... 8 Table 1.2 Balance of payments, 2011-15 ............................................................................. 13 Table 1.3 Inflows of FDI by source and sector, 2011-14......................................................... 14 Table 2.1 Singapore's participation in RTAs and FTAs, January 2016 ........................................ 17 Table 3.1 Overview of