The Comprehensive Economic Cooperation Agreement (CECA) is an agreement signed between two countries to enhance economic ties and promote trade and investment. It is a comprehensive and ambitious agreement that covers a wide range of areas, including trade in goods, services, investment, intellectual property rights, and government procurement.
Singapore was the first country to sign a CECA with India in 2005, which came into force on 1 August 2005. This agreement has been a significant milestone in the bilateral relations between the two countries, and it has contributed significantly to increasing trade and investment between them. Since then, India has signed CECA agreements with other countries like Japan, South Korea, and Malaysia.
CECA agreements are considered as a win-win situation for both countries. They enable Singaporean companies to access the vast Indian market, which has a population of over 1.3 billion people. On the other hand, Indian companies get access to Singapore`s advanced technology and expertise in finance, logistics, and infrastructure.
Under the CECA agreement, both Singapore and India agreed to reduce tariffs on goods traded between the two countries. This has resulted in an increase in bilateral trade between the two countries from $8 billion in 2004 to over $20 billion in 2019. The agreement has also helped Singaporean companies to set up an office in India and vice-versa, thereby promoting investment in both countries.
The CECA agreement has also provided for the liberalization of the services sector between Singapore and India. The agreement has paved the way for Singaporean service providers to gain access to India`s high-growth service sectors like IT and healthcare. Similarly, Indian professionals have been given access to Singapore`s services sector, providing opportunities for Indian companies to expand their businesses in Singapore.
Moreover, the CECA agreement has also provided for the protection of intellectual property rights, which is essential for companies operating in today`s fast-paced, knowledge-based economy. The agreement has also provided for the mutual recognition of standards and qualifications, which is essential for professionals seeking to work in either country.
In conclusion, the Comprehensive Economic Cooperation Agreement (CECA) is a significant milestone in the bilateral relations between Singapore and India. The agreement has contributed significantly to increasing trade and investment between the two countries, and it has provided opportunities for companies and professionals in both countries to expand their businesses and careers. As more countries sign CECA agreements, the world will become more connected, and the global economy will become more integrated.