Page 629 - SSB Interview: The Complete Guide, Second Edition
P. 629
Background
Singapore is the second-largest trading partner of India within ASEAN and
India is the largest trading partner of Singapore in South Asia, with a bilateral
trade of $17.7 billion in 2017–18. Singapore’s trade with India constitutes
about 21.8% of India’s total trade with ASEAN and 2.3% of India’s global
trade. India had a trade surplus of $2.73 billion with Singapore in 2017-18.
The Protocol amending CECA will give effect to the provisions agreed
between India and Singapore during the closure of the Second Review of
India–Singapore CECA. The conclusion of the Second Review of CECA was
announced during the State visit of the Prime Minister of India to Singapore
on 1 June 2018. The provisions of the Second Protocol came into effect on 14
September 2018. The two countries were exploring the possibility of
launching the third Review of India-Singapore CECA in September 2018.
Highlights of the amended CECA
India and Singapore have successfully reached a mutual understanding and
agreement to expand the coverage of tariff concessions, liberalise the Rules
of Origin, rationalise Product Specific Rules and include provisions on
Certificate of Origin and Cooperation on its verification. The second review
of CECA was launched in May 2010, but since then the review was held
primarily on these counts:
1. Singapore had restricted the movement of skilled professionals from
India after putting Indian information technology companies under its
fair consideration framework watch list, which gave preference to
Singapore citizens in jobs introduced in 2014.
2. Singapore mandated a higher asset maintenance ratio (AMR) for Indian
banks, including the State Bank of India and ICICI Bank operating in
Singapore, compared to the mandate for other foreign banks. India
complained about the discrimination, but Singapore was not ready to
oblige.
