The investment protection agreement between the European Union and Singapore, passed in the Riigikogu today, aims to improve the investment climate between the EU and Singapore.
According to the explanatory memorandum, the agreement benefits European investors, ensuring the protection of high-level investments in Singapore, at the same time reserving the parties the right to regulate the sector and to establish legal provisions. The agreement establishes an investment tribunal system of two instances which aims to ensure better legal protection to investors and to consider their disputes more quickly and transparently. The agreement also ensures the protection of Singaporean investors in Europe.
The draft agreement was approved at the sitting of the Government on 4 October 2018. Estonia signed the agreement in Luxembourg on 15 October 2018. The EU and Singapore signed the agreement at the Asia-Europe Meeting Summit in Brussels on 19 October 2018. The agreement enters into force after all countries have ratified the agreement according to their national procedures.
According to the data of the Bank of Estonia, Singapore’s direct investments in Estonia totalled 136.2 million euro as at June last year. That accounted for 0.6% of direct investments in Estonia. Investments have mainly been made in processing industry, and they make up 83% of the investments. Estonia’s direct investments in Singapore totalled 2.5 million euro. Investments have been made in processing industry, wholesale and retail trade, the information and communications sector, financial and insurance activities, real estate, and vocational, research and technology activities.
In 2018, Estonian exports to Singapore totalled 47 million euro, and Estonian imports from Singapore totalled 5 million euro. More than 10,000 EU companies have been established in Singapore, and they service the whole Pacific region from there. In 2016, the volume of mutual investments amounted to 256 billion euro.
80 members of the Riigikogu voted in favour of the passage of the Act on the Ratification of the Investment Protection Agreement between the European Union and its Member States, of the one part, and the Republic of Singapore, of the other part (104 SE).
Verbatim record of the sitting (in Estonian).
Video recordings of the sittings of the Riigikogu can be viewed at https://www.youtube.com/riigikogu
(Please note that the recording will be uploaded with a delay.)
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