India and Singapore today signed an accord aimed at paving the way for a negotiated bilateral free trade arrangement.
Singapore Prime Minister Goh Chok Tong, who had a meeting with Prime Minister Atal Bihari Vajpayee, said he was in favour of facilitating trade between India and China.
Commerce minister Arun Jaitley and Singapore Trade and Industry Minister George Yeo also signed a declaration of intent for a Comprehensive Economic Cooperation Agreement (CECA) between the two countries.
The two countries also decided to negotiate CECA in the framework of the report of a joint study group (JSG) set up by the two Prime Minister in April last year.
The JSG had recommended that the two countries should enter into formal negotiations for CECA, which will consist of an integrated package of agreements.
These include a free trade agreement, including trade in goods, services and investment, an accord on investment promotion, protection and cooperation and a revised double taxation avoidance agreement.
It also envisages a more liberal air services agreement and open skies for charter flights and a programme of economic cooperation including an India-Singapore fund, with a target of $1 billion, to address investment opportunities in India, a second India Centre in Singapore and tourism cooperation.
Tong also had a meeting with president APJ Abdul Kalam.
