Kazakhstan has ratified a free trade agreement between the Eurasian Economic Union (EEU) and Singapore. President Kassym-Jomart Tokayev has already signed the corresponding law, as reported by his press service.
Under the agreement, the EEU will introduce a tariff-free regime for 88% of the product range, up from 40% previously, while Singapore will lift all import tariffs. Previously, the government of Singapore, a member of the World Trade Organization, had the right to raise tariffs for agricultural and industrial products up to 10%.
The EEU and Singapore agreed to gradually remove all customs duties in November 2019 at a meeting in Yerevan. The move was aimed at creating favorable conditions to promote goods and attract new investments in EEU member states. The Mazhilis (the lower house of Kazakhstan’s parliament) emphasized that the agreement would facilitate the entry of Kazakhstani products into foreign markets and boost export volumes.
In May 2023, Kazakhstan and Singapore signed an agreement on free trade in services and investments. Mutual preferential access was granted for 92 types of service subsectors, along with more favorable conditions for investments.
From January to November 2024, Kazakhstan exported 1.5 million tons of goods to Singapore, valued at $780.7 million. In numerical terms, this rate shrank by half year-on-year (from 3 million tons over the first 11 months of 2023) and declined by 48.2% in monetary terms (from $1.5 billion). Kazakhstani exports to Singapore primarily consist of crude oil, copper and copper cathodes.
In turn, Singapore supplied 4,600 tons of products to Kazakhstan, valued at $60.6 million, over the first 11 months of last year. This rate rose by 5.8% in numerical terms but declined by 19% in monetary terms. Singapore’s exports to Kazakhstan consist of aerial vehicles, pharmaceutical products, medical equipment, phones and electronics.
In early December 2024, the Senate (the upper house of parliament) approved a draft law on a free trade agreement between the EEU and Iran, which was initially signed in late 2023. The document proposes a tariff-free regime for more than 90% of the product range. This law has yet to be signed by President Tokayev.
