The Singapore-Australia Free Trade Agreement (SAFTA) is the central pillar of the economic relationship with Singapore, Australia's largest trade and investment partner in Southeast Asia.
SAFTA entered into force on 28 July 2003 and remains one of Australia's most ambitious and liberalising FTAs. The Agreement has been regularly updated with amendments entering into force in 2006, twice in 2007, 2011, 2017, and 2020.
SAFTA eliminated all tariffs on Australian goods from entry into force. The comprehensive update in 2017 made it easier for Australian businesses to trade in Singapore by providing a more open and predictable business environment across a range of areas including competition policy, government procurement, intellectual property, customs procedures and business travel.
SAFTA also ensures market access for service exporters in sectors of key importance to Australia such as in education, professional and financial services.
The amendment in 2020 resulted from the Digital Economy Agreement (DEA), a landmark agreement that set a new global benchmark for digital trade. The new Digital Economy chapter replaced the previous Electronic Commerce section providing more opportunities for businesses and consumers to engage and benefit from the digital economy.
SAFTA forms part of a broader economic and trade framework with Singapore which also includes the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA), the Regional Comprehensive Economic Partnership Agreement (RCEP), and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Key outcomes and benefits of SAFTA
- Tariff Elimination: All tariffs between Australia and Singapore have been removed, making it easier and more cost-effective to trade goods.
- Rules of Origin: Improved procedures allow traders to self-certify goods for preferential treatment, while exporters may still use third-party certification.
- Financial Services: Australian financial service providers can offer a range of services, including investment advice, portfolio management and brokerage services for maritime, aviation and transport-related risks on a cross-border basis.
- Investment: Modern investor-state dispute settlement (ISDS) mechanism, and explicit safeguards to protect the Government's right to regulate in the public interest.
- Digital: Robust rules that ensure businesses, including in the financial sector, can transfer data across borders and are not required to build or use data storage centres in either jurisdiction. Improved protections for source code and new commitments on compatible e-invoicing and e-payment frameworks. New commitments to improve safety and consumer experiences online.
- Government procurement: Updated text to promote improved procurement practices and greater access to government contracts for indigenous firms and, small and medium enterprises.
- Mobility: Greater certainty for service suppliers seeking to enter and work temporarily in each country including provisions for extended stays and access to a help desk and streamlined application processes for Australians.
Helpful Links
- FTA Portal – Access the latest information about Australia's in-force Free Trade Agreements (FTAs). This user-friendly site helps you compare agreements including tariffs, Harmonised System Codes (HS Codes), rules of origin requirements, and find the best fit for your business needs.
- Australian Border Force – Find details on customs, import requirements, advance rulings and customs duties.
- Austrade – Explore export opportunities and support for Australian exporters.
- Department of Agriculture, Fisheries and Forestry – For market access issues for agricultural products including biosecurity and implementing policies for agricultural traceability.
Contact Us
For more information, please email: fta@dfat.gov.au.