The EU and Singapore reached an agreement which is, according to the European Commission, one of the most comprehensive the EU has ever negotiated and will create new opportunities for companies from Europe and Singapore to do business together. After the EU-Korea FTA, the EU-Singapore FTA will be the EU's second ambitious agreement with a key Asian trading partner.

A new agreement reached between the EU and Singapore will create new opportunities in many services sectors. For example, in banking, insurance and other financial services industries as well as in public tendering. It will also cut down on the red-tape and double-testing that makes life difficult for business. The deal will facilitate the access of industrial and agricultural products on an important export market, through greater recognition of EU standards. For example, Singapore will accept to import European manufactured cars based on EU technical and safety standards and approvals. Recently, MEPs approved the pacts freeing up EU trade with Colombia, Peru and six countries in Central America.

The growing Singaporean market offers export potential for EU, industrial, agricultural and services businesses. In addition, this agreement is a first when it comes to promoting 'green growth' and has been especially designed to meet the EU's "2020 strategy" for a competitive economy. The deal will simplify rules to boost trade and investment in environmental technologies and promote green public tendering.

Negotiations between the EU and Singapore on a free trade agreement started in March 2010. Both the EU and Singapore will now seek approval for the deal from their respective political authorities and envisage initialling the draft agreement in spring 2013. Talks between the two sides on investment will continue.