LONDON (ICIS)--Turkey and Singapore have signed a free trade agreement (FTA) that will bring customs duty rates to zero for some goods and slash those for polymers, according to a source this week.
The agreement has already caused a drop in rates, from 6.5% to 5.6%, and the rate will continue to drop to zero throughout 2018.
The next step is scheduled to take place on 1 January, seeing rates drop to around 4.8%.
The Turkey-Singapore Free Trade Agreement (TRSFTA) entered into force on 1 October 2017. Under the terms of the agreement, Turkey and Singapore are treated as a single production area for purposes of accumulation.
This means that any good or material that originated from Turkey will be deemed to have originated from Singapore, and vice versa, provided the good or material satisfies the origin requirements.
The new duties may increase trade from Singapore into Turkey, although the country currently accounts for very small proportion of polymer imports.
However, as shown in the graph below, homopolymer imports have been rising significantly over the past three years.
2017 data is not complete but it is already three times greater than 2016 volumes.
*2017 Turkstat data subject to change
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