S'pore, India eye free trade pact

S'pore, India eye free trade pact

SINGAPORE (Reuters): Singapore and India agreed on Friday to study the possibility of a bilateral free trade agreement (FTA) as part of efforts to forge closer economic ties.

Singapore is a keen advocate of FTAs to keep up the momentum of trade liberalization. It is due to sign a market-opening pact with New Zealand next week, is in FTA negotiations with Mexico and is due to start talks with Japan in January.

A bilateral FTA is an ambitious goal. Unlike Singapore, India has yet to fully open its economy.

"It is premature to assess the chances of an FTA with India at this juncture," a spokeswoman for Singapore's Ministry of Trade and Industry (MTI) said.

But officials said there was clear scope to boost two-way trade, which increased eight percent last year to S$5.49 billion.