S'pore, India to wrap up trade talks soon

S'pore, India to wrap up trade talks soon

Singapore and India want to complete talks on a trade agreement
by the end of November after negotiators ironed out key issues at
their latest meeting, the trade ministry said on Friday.

Trade Minister Lim Hng Kiang met his Indian counterpart Kamal
Nath here on Thursday in an attempt to resolve outstanding issues
in their Comprehensive Economic Cooperation Agreement (CECA),
initiated two years ago.

"The ministers reached broad agreement on a wide range of
substantive outstanding items," the ministry said in a statement.

These issues relate to the treatment of investments, movement
of their citizens, the scope of tariff cuts and the rules of
origin for goods to be given tariff concessions.

"This was a highly significant meeting that has cleared the
way for officials to work towards finalizing the text of the
agreement. The ministers instructed officials to work towards
wrapping up the negotiations by the end of November 2004," the
statement said.

Among others, the agreement aims to ease barriers for
Singaporean firms to invest in India's fast-growing economy and
give greater access for Indian professionals in Singapore's
services industries.

India will cut tariffs on its imports from Singapore by 80
percent after the pact is signed, gradualling reducing them to
zero over a five year period.

The agreement also calls for a liberalization of air transport
between the two countries.

Singapore has invested US$1.5 billion in India, making it
India's biggest Asian investor and the third largest overall.

India expects Singapore to invest an additional $2 billion in
the technology, manufacturing, financial services and aviation
sectors next year.

Singapore is a leader in forging free-trade or comprehensive
economic agreements with its major trading partners, having
signed such accords with the United States, Japan, Australia and
New Zealand. -- AFP