UK signs post-Brexit free trade deal with Singapore

The United Kingdom and Singapore have signed a free-trade agreement worth more than 17 billion pounds ($22.5 billion), marking another major trade deal for Britain that is bogged down in tense talks with the European Union.

The deal was signed by Britain's International Trade Secretary Liz Truss and Singapore's Trade Minister Chan Chun Sing at a ceremony in the Southeast Asian city-state on Thursday.

It came as UK negotiations for a Brexit trade agreement with the European Union remain unresolved with the Dec 31 deadline looming.

The deal effectively duplicates the agreement Singapore already has in place with the EU, meaning trade would continue as normal from Jan 1.

The agreement is the latest in a wider UK effort to secure new trade deals worldwide that will replicate and replace relationships it had through its EU membership.

The British government signed its first major post-Brexit bilateral trade deal with Japan in October. The UK and Canada agreed last month to continue trading under the same terms as the current EU agreement after the Brexit transition period ends.

According to the UK government, this latest agreement means it has now secured new trade deals with 57 countries that account for 193 billion pounds of UK bilateral trade. Truss is also seeking to finalize a trade agreement with Vietnam this week.

First one within ASEAN

It is London's first free trade agreement with a member of the Association of Southeast Asian Nations, or ASEAN, and the second biggest in the Asia-Pacific region.

As it stands, 84 percent of tariffs that apply to Singapore exports are exempted. All duties will be eliminated by November 2024, said a joint ministerial statement by Singapore and the UK.

"Singapore is the UK's main trading and investment partner in ASEAN, while the UK is the leading destination for Singaporean investment in Europe," Truss said.

It is the "latest step in the UK's strategy to create a network of trade agreements with dynamic economies far beyond Europe", a British government statement said.

Singapore counts Britain among its top partners for goods and services worldwide, and is its top investment destination in Europe, the BBC reported.

"Beyond the significant benefits to our respective businesses, the (deal) is a strong statement against protectionism and nativism," Chan said.

Singapore and the UK are both global leaders in the digital economy and 70 percent of UK services exports were delivered remotely to Singapore last year, worth 3.2 billion pounds, according to the British government.