Singapore – Australia Free Trade Agreement (SAFTA)

The Singapore – Australia Free Trade Agreement, which entered into force in 2003 and was amended in 2017, provides for the elimination of border tariffs on all goods traded between the two countries, including for :

• Electric motors, turbines and generators
• Mechanical equipment including pumps, appliances and other advanced machinery
• Electric accumulators, transformers, capacitors, batteries
• Motor vehicles
• Mineral ore, slag and ash
• Mineral fuels, oils and other products
• Metals and their articles e.g. iron and steel
• Semiconductors devices and photovoltaic cells

Rule of origin apply to qualify for preferential tariff treatment. Conditions include: 

• for some specific mineral fuels such as coal and petroleum oils, materials are required to undergo change in tariff classification in one of the signatory countries,
• For most of the products listed above, materials must either undergo change in tariff classification in one of the signatory countries or satisfy a 40% minimum local value content requirement.

The Agreement also forbids investment requirements tied to export quotas obligations, domestic content requirements, technology transfer and other non-tariff barriers. Additionally, its national treatment and most-favoured nation provisions require investors from either signatory country to be treated equally to both domestic investors or those from any other nations.

However, the Agreement allows both signatory countries to provide additional benefits or advantages linked to the following conditions: 

• Location of production in its territory
• Supply of a specific service
• Training and employment of workers
• Construction or expansion of certain facilities
• R&D activities

the Agreement does not prevent its Parties from taking temporary safeguard measures in the event of serious financial difficulties, threats or other exceptional circumstances.

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