EU-Singapore Trade & Investment

Transcription

1 EU-Singapore Trade & Investment

2 The European Union European Union 500 million citizens 27 member states Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, The Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, United Kingdom 23 official languages 5 European Union (EU) institutions European Parliament, Council of the European Union, European Commission, Court of Justice & Court of Auditors One single market A union of different traditions and cultures but one shared vision of freedom, prosperity and democracy Freedom to live, work and study anywhere in the EU Do you want to know more about the EU? Visit our website at

3 Contents 2 Message from the EU Trade Commissioner, Karel de Gucht EU-SINGAPORE TRADE & INVESTMENT EU-SINGAPORE Trade & Investment Message from the European Union Ambassador to Singapore, Holger Standertskjöld-Nordenstam 6 Introduction 9 EU The World s No. 1 Economy 13 Trade and Investment Relations with Singapore 22 Trade and Investment Relations with ASEAN 27 EU Delegations in ASEAN Contact Information 30 European Chambers of Commerce in ASEAN Contact Information 32 About the EU Delegation to Singapore

4 02 EU-SINGAPORE TRADE & INVESTMENT 2010 Message from The EU Trade Commissioner The commercial and political ties between Europe and South-East Asia have existed for centuries, and they have grown from strength to strength as the world economy has become more globalised. The role that South-East Asia, and especially Singapore, plays in global supply chains is demonstrated not only by the flow of goods imported from the region to the EU, but also by the growing presence of European companies in the region. The EU seeks to improve conditions for trade and investment wherever possible. Our priority for trade liberalisation is through multilateral arrangements, and our main focus continues to be working with our partners at the World Trade Organisation (WTO). However, we recognise that there is scope for deeper cooperation between the EU and key partners such as Singapore that complements the multilateral trade agenda. Indeed, the EU and Singapore share a number of common goals and have both recognised the benefits of regional integration. The future will see an ongoing partnership that has placed the EU among Singapore s first trading partners, and Singapore is the EU's 12th largest trading partner. Furthermore, the EU and Singapore have invested over 100 billion in each other's economies over the years. Being one of the EU's most important trading partners in Asia and the biggest in ASEAN, Singapore is in fact a key partner for the EU.

5 EU-SINGAPORE TRADE & INVESTMENT In order to deepen even further our economic and trade relations, Singapore s Minister for Trade and Industry Mr. Lim Hng Kiang and I decided to launch negotiations for a free-trade agreement (FTA) between the EU and Singapore on 3 March The EU Singapore FTA marks a milestone in the EU's longstanding relations with Singapore and an important stepping-stone in our engagement with the ASEAN region. I hope that this booklet will serve as a useful source of information for businesses, officials as well as the broader audience to learn about and build upon the excellent ties that exist between the EU and Singapore. Karel De Gucht EU Trade Commissioner

6 04 EU-SINGAPORE TRADE & INVESTMENT 2010 Message from European Union Ambassador to Singapore The EU and Singapore share many common features and values, such as a deep respect for cultural, religious and linguistic diversity and a commitment to regional integration. Throughout these pages, you will discover that with 27 Member States, nearly 500 million people and the largest GDP in the world, the EU is of critical and increasing economic importance to Singapore, even more so in a sluggish world economic environment. This brochure is designed to give you an overview of: The EU in the world in economic terms; The EU trade and investment relations with Singapore; The EU trade and investment relations with ASEAN.

7 EU-SINGAPORE TRADE & INVESTMENT In addition to learning that the EU is the world s largest economy, you will discover, among other things, that the EU is Singapore s largest trading partner and is the largest source of foreign direct investment (FDI) into Singapore. The EU also has a considerable business presence (with about 8,000 European companies operating in Singapore), which is supported by the European Chamber of Commerce (EuroCham) and the European National Business Groups. The on-going free-trade agreement negotiations between the EU and Singapore are further proof of the importance both parties attach to deepening even further our economic relations. I hope that this booklet will enhance your understanding of the significance of the trade relationship between the EU and Singapore. Holger Standertskjöld - Nordenstam Ambassador and Head of Delegation

8 06 EU-SINGAPORE TRADE & INVESTMENT 2010 Introduction The EU has 27 Member States, nearly 500 million people and the largest GDP in the world. The EU is of critical and increasing importance to Singapore and ASEAN. The EU is of critical and increasing importance to Singapore and ASEAN The EU and ASEAN are both groupings of like-minded countries The EU and ASEAN are both groupings of like-minded countries that have, in their own ways, embarked upon regional economic integration and close cooperation in many fields. Although the two regions have distinct features and very different starting points, they have both been successful in dismantling trade barriers and building lasting mechanisms for policy coordination. ASEAN is a group of heterogeneous countries, most of which are still classified as developing countries. Singapore has grown to become the region s most prosperous country largely based on its position as a trading hub closely connected to global commerce. Its success as a trading nation is being followed by its much larger neighbours, who have also shown a growing potential to reap the benefits of globalisation. The ASEAN Charter has the potential to offer the region increasing momentum by boosting trade and reinforcing economic cooperation.

9 EU-SINGAPORE TRADE & INVESTMENT The EU is ASEAN s largest overall trading partner, ahead of China and the United States The EU is Singapore s largest trading partner and most significant source of foreign direct investment The EU is ASEAN s largest overall trading partner, ahead of China and the United States. In fact, the EU accounts for 11.3% of ASEAN s total external trade. In 2008, overall merchandise trade between ASEAN and the EU amounted to 143 billion. In 2009, the EU was Singapore s largest trading partner. According to statistics from Singapore, the EU accounts for 11.6% of Singapore s total external trade. This figure puts the EU ahead of China, the United States and other ASEAN members including Malaysia. Singapore is also the EU s number one trading partner in ASEAN. Moreover, the EU is by a clear margin the most significant source of FDI in Singapore. This privileged relationship has an even brighter future ahead as negotiations on a free-trade agreement between the two economies are expected to be sealed in the near future.

10 08 EU-SINGAPORE TRADE & INVESTMENT 2010 EU in the World 28% of global GDP the world's largest economy 500 million consumers the world's most lucrative market 21% of global cross-border trade the world's largest trading block 50% of global outward FDI the world's largest outward investor 43% of global inward FDI the world's prime investment destination A single market, a single tariff, a single set of rules

11 EU The World's No. 1 Economy EU-SINGAPORE TRADE & INVESTMENT The EU is the world s largest economy with a 28% share of world GDP The rise of emerging Asian countries as manufacturing centres in the global marketplace has been truly remarkable. Increasingly sophisticated supply chains, cheap and efficient communication technologies and the availability of vast amounts of cheap but skilled labour have made these countries undisputed beneficiaries of globalisation. The EU has also benefited from these developments. The EU comprises 27 Member States. Its trading partners benefit greatly from such a large market, in which a single set of trade rules, a single tariff, and a single set of administrative rules apply across the area, making it easier for companies to do business with the EU. The EU is the world s largest economy with a 28% share of world GDP, and its 500 million inhabitants make it the world s most lucrative consumer market. It is also the world s largest trading entity, accounting for 21% of global trade in goods and 44% of global trade if one takes into account trade between EU Member States. Of the top trading nations, six belong to the EU. World leading nations/entities in merchandise trade in 2008 ( billion) EU27 (incl. intra-eu) EU27 (excl. intra-eu) US Germany China ASEAN Japan Source: WTO, World Trade Report 2009, Eurostat France Netherlands Italy UK Belgium Canada South Korea Hong Kong Spain Singapore Furthermore, the EU accounts for 26% of global trade in services (excluding trade in services between EU Member States).

12 10 EU-SINGAPORE TRADE & INVESTMENT 2010 The EU is a well-established global economic powerhouse, with growth rates matching those of the United States. Between 2000 and 2008 the EU had an annual GDP growth of 2.2% on average, whereas that of the USA grew by 2.3% annually over the same period. The EU s strength is further substantiated by the findings of the World Economic Forum s Global Competitiveness Report ( ), showing that five out of the ten most competitive countries in the world are EU Member States. Also noteworthy is that Singapore is in third place in this ranking. Country Switzerland USA Singapore Sweden Denmark Finland Germany Japan Canada Netherlands Global Competitiveness Index (GCI) rank GCI score Source: World Economic Forum, Global Competitiveness Report

13 EU-SINGAPORE TRADE & INVESTMENT European companies are world champions of globalisation The EU is the world s biggest investor The EU remains the world s number one location for FDI European companies are world champions of globalisation, demonstrated by the fact that out of the world s top-20 non-financial multinational corporations (MNCs) ranked by foreign assets, 14 are from the EU, according to UNCTAD. The EU is the world s biggest investor. In 2008, foreign direct investments (FDI) abroad amounted to around US$8.08 trillion. This corresponds to 50% of the world s total existing outward FDI stock. In 2008, the EU was the source of 45% of the world s FDI outflows. The fact that European companies are the world s most active investors overseas is not an indication of a lack of opportunities for growth in their home market on the contrary, the EU remains the world s number one location for FDI. In 2008, the EU was host to foreign investments worth US$6.4 trillion, which corresponds to around 43% of the world s total inward FDI stocks. Growth in FDI annual inflows to the EU has increased considerably since the 1970s. In terms of FDI inflows, China and the rest of Asia still have considerable catching-up to do: in 2008, inflows to the EU totalled US$503 billion, whereas China received US$108 billion, and Asia as a whole US$388 billion.

14 12 EU-SINGAPORE TRADE & INVESTMENT 2010 Stocks of outward FDI US$ Billion EU US Asia Japan Source: UNCTAD World Investment Report 2009 Stocks of inward FDI US$ Billion EU US Asia Hong Kong Japan Source: UNCTAD World Investment Report 2009

15 EU-SINGAPORE TRADE & INVESTMENT Trade & Investment Relations with SINGAPORE

16 14 EU-SINGAPORE TRADE & INVESTMENT Trade in Goods The EU is Singapore s largest trading partner In 2009, the EU became Singapore s largest trading partner in goods. According to the Singapore Department of Statistics, in 2009, the EU accounted for 11.6% of Singapore s total external trade, purchasing 9.5% of Singapore s exports and providing 14% of its imports. These figures put it ahead of China, the USA and other ASEAN members. EU Singapore overall merchandise trade amounted to S$86.8 billion, a 33% increase from its 2003 level of S$65.1 billion. The growth in EU Singapore trade can be largely attributed to the role of Singapore as a trading hub in South-East Asia. As the ASEAN countries continue on the path of regional integration, the strategic position of Singapore is becoming increasingly attractive for trading partners such as the EU. Singapore is the EU s 12th largest partner worldwide Strong trade growth between the EU and Singapore between 2003 and 2008 Singapore is the EU s number one trading partner in ASEAN, largely by virtue of its strong absorption capacity and gateway advantages towards the South-East Asian region. Globally, Singapore is the EU s 12th largest trading partner, while it ranks fifth in Asia. Over the years, trade in goods between the EU and Singapore has been expanding strongly, reaching an average annual growth rate of about 9.5% for the period This is higher than the growth in Singapore s trade with Malaysia, Japan and the USA. However, due to the financial and economic crisis, and the collapse of world trade, EU Singapore trade fell by 9% in In 2009, the EU recorded a trade surplus of 5.8 billion.

17 EU-SINGAPORE TRADE & INVESTMENT Singapore s top 10 trading partners in 2009 Rank Source: IE Singapore, December 2009 Country EU Malaysia China USA Indonesia Hong Kong Japan Korea Taiwan Thailand Share (%) Evolution of the EU s trade with Singapore ( billion) Exports Imports Balance Source: Eurostat

18 16 EU-SINGAPORE TRADE & INVESTMENT 2010 Singapore is an important export market for the EU The EU is an important export destination for Singapore In 2009, Singapore was the 14th largest export recipient, and the destination of 1.9% of the EU s total exports. This makes it the EU s largest export market in South-East Asia. In 2009, the EU exported 20.4 billion worth of goods to Singapore. EU exports to Singapore are concentrated in certain key product groups. The three most important ones are machinery and transport equipment (accounting for 56.6%), chemicals (11.8%) and miscellaneous manufactured articles (8.6%). The EU imported billion worth of goods from Singapore, making it Singapore s fourth biggest client. Singapore is the EU s 17th largest supplier of goods. Singapore supplies 1.2% of the EU s total imports, with a comparatively strong role in certain sectors. For instance in chemicals, Singapore supplies 4% of the EU s imports, and in machinery and transport equipment its share is 2%. These two product groups account for the majority of the EU s overall imports from Singapore, with chemicals accounting for 28.2% and machinery and transport equipment for 46% of the total.

19 EU-SINGAPORE TRADE & INVESTMENT Trade in goods between the EU and Singapore in 2009: main product categories EU Member States merchandise trade shares with Singapore in 2009 European Union imports from Singapore (products by order of importance) TOTAL Machinery and transport equipment Chemicals and related products Miscellaneous manufactured articles European Union exports to Singapore (products by order of importance) TOTAL Machinery and transport equipment Chemicals and related products Miscellaneous manufactured articles million 14,590 6,715 4, million 20,435 11,557 2,406 1,766 % % UK 16% Other EU 19% Italy 5% Source: Singapore Department of Statistics Netherlands 14% Germany 20% Belgium 6% France 20%

20 18 EU-SINGAPORE TRADE & INVESTMENT Trade in Services Trade in services between the EU and Singapore is growing at a steady rate Trade in services between the EU and Singapore is growing at a steady rate. It amounts to more than half of the value of EU Singapore trade in goods. In 2008, EU countries generated a surplus of 3.3 billion from overall services trade of 20.6 billion with Singapore. Singapore is the EU s sixth largest trading partner in services This number makes Singapore the EU s sixth largest trading partner in services. The major categories of services imported to Singapore are royalties and transportation with the latter also being Singapore s most exported service. Singapore-EU trade in services by major services categories in 2008 (S$ million) Major services categories Transportation Insurance Construction Financial Computer and information Royalties Social Trade related Business management Communications and other services Source: Singapore Department of Statistics Import (From EU to Singapore) 6, , , , ,584.9 Export (From Singapore to EU) 9, , , , ,806.1

21 3. Foreign Direct Investment EU-SINGAPORE TRADE & INVESTMENT The EU is the biggest source of FDI in Singapore More than 8,000 EU companies are present in Singapore Very strong growth of EU FDI stock in Singapore Singapore is the largest Asian destination for EU FDI outflows Singapore is among the biggest external investors in the EU Strong growth of Singapore s FDI stock in the EU The figures from 2008 show that the EU is the most significant source of FDI in Singapore. The EU FDI stock amounted to S$142 billion (30% of total), with the USA at S$52 billion (11% of total) and Japan at S$49 billion (10.5% of total). The most important sectors for EU FDI in Singapore are manufacturing, and financial and insurance services. Over 8,000 EU companies are present in Singapore. The EU FDI stock in Singapore has experienced very strong growth in the past decade, increasing from S$45 billion to S$142 billion during the period In 2008, which is the latest year for which comparable figures are available, Singapore hosted more than 60% of EU FDI in ASEAN. Despite the intensifying competition for FDI among Asian countries, Singapore was the largest Asian destination for EU FDI outflows, ahead of Japan, Mainland China and Hong Kong. At the end of 2008, the total stock of Singapore s FDI in the EU stood at S$34 billion, which accounts for 11.4% of Singapore s total FDI stock abroad. Singapore is among the biggest external investors in the EU. Singapore accounts for more than 95% of the FDI from ASEAN to the EU; and out of all Asian FDI stock to the EU it ranks second with a share of 16%, only after Japan. The large majority of Singapore s FDI within the EU is in the financial and insurance services and the manufacturing sectors, followed by information and communications and wholesale and retail trade, hotel and restaurant services. During the period the FDI stock increased more than six-fold, from S$5.2 billion to S$34 billion.

22 20 EU-SINGAPORE TRADE & INVESTMENT 2010 FDI to and from Singapore (stocks at year end, S$ billion) FDI from the EU to ASEAN countries (annual outward stocks, million) Singapore to EU EU to Singapore USA to Singapore Singapore to USA Source: Singapore Department of Statistics Singapore Thailand Malaysia Indonesia Philippines Source: European Commission/DG Trade

23 EU-SINGAPORE TRADE & INVESTMENT Share of Foreign Direct Investment in Singapore by country/region of origin (2008) Rest of the world, 45% Japan, 10% ASEAN, 4% EU, 30% Source: Singapore Department of Statistics USA, 11%

24 22 EU-SINGAPORE TRADE & INVESTMENT 2010 Trade & Investment Relations with ASEAN

25 EU-SINGAPORE TRADE & INVESTMENT The EU is ASEAN s largest trading partner As a whole, ASEAN is the EU s fifth trading partner Singapore represents about one-third of EU s trade in goods with ASEAN, and 60% of EU s investments in ASEAN The EU is ASEAN s first overall trading partner. In fact, the EU accounts for 11.3% of ASEAN s total external trade in goods, purchasing 12.1% of ASEAN s exports and providing 10.4% of its imports. In 2008, total trade between ASEAN and the EU amounted to 143 billion. Considering ASEAN as a single trading entity would give it a 5.1% share of the EU s total external trade and put it in fifth place, ahead of Norway (4.6%), Japan (4%) and Turkey (3.5%). ASEAN s trade with the EU has been growing steadily. The EU had a trade deficit ( 17.7 billion) with ASEAN in On a country level, the EU has a trade deficit with most ASEAN countries, except with Brunei and Singapore. Singapore represents about one-third of EU s trade with ASEAN and 60% of EU s investments in ASEAN. In 2009, EU exports to ASEAN were concentrated in a few key sectors. Heading the list of the most important product groups are machinery and transport equipment (53.7%) chemicals (13.3%) and manufactured goods (10.7%). The EU s imports from ASEAN are concentrated in machinery and transport equipment (40.9%) and miscellaneous manufactured goods (21%).

26 24 EU-SINGAPORE TRADE & INVESTMENT 2010 EU s top trading partners in 2009 EU s trade in goods with ASEAN countries ( million) Rank : Country USA China Russia Switzerland Norway Singapore Malaysia Thailand Indonesia Vietnam Philippines Cambodia Myanmar Laos Brunei ASEAN Volume of goods traded ( billion) Share (%) Singapore Malaysia Thailand Indonesia Philippinaes Vietnam Cambodia Myanmar Brunei Laos Source: European Commission/DG Trade

27 EU-SINGAPORE TRADE & INVESTMENT The EU is the biggest source of FDI in ASEAN The EU is hosting increasingly more investments from ASEAN Between 2006 and 2008, the EU s FDI outflows to ASEAN totalled more than 37.1 billion. In 2008, the EU accounted for 22% of total FDI inflows to ASEAN, ahead of the ASEAN countries themselves, Japan and the USA. In 2008, the EU FDI stock in ASEAN stood at billion. The stock in ASEAN has seen very strong growth in recent years. The largest part of EU FDI stock is concentrated in Singapore, followed by Malaysia, Indonesia, Thailand and the Philippines. Seen from the EU side, FDI outflows to ASEAN in 2008 constituted 38% of the EU s total flows to Asia (excluding the Near and Middle East) and increased from 4.8 to 17.7 billion between 2005 and Around 86% of this FDI went to Singapore. While investing increasingly more in ASEAN, the EU s inward FDI stocks from the region more than doubled in just four years, from 22.2 billion in 2004 to 54.5 billion in 2008.

28 26 EU-SINGAPORE TRADE & INVESTMENT 2010 List of data resources: ASEAN Secretariat Economic Development Board, Singapore European Commission/DG Trade IE Singapore Singapore Department of Statistics UNCTAD World Investment Report World Economic Forum World Trade Organization Unless otherwise stated, all graphs and tables are based on statistics from Eurostat.

29 Delegations of the European Union in ASEAN Contact Information Brunei Darussalam Delegation of the European Union to Indonesia and Brunei Darussalam Intiland Tower, 16th Floor J1. Jend Sudirman 32, Jakarta Indonesia Postal Address: P.O. Box 6454 JKPDS, Jakarta Indonesia Cambodia EU-SINGAPORE TRADE & INVESTMENT Delegation of the European Union to the Kingdom of Cambodia No. 1, Street 21 Sangkat Tonlé Bassac, Khan Chamcarmon Phnom Penh P.O. Box 2301 Cambodia Tel: (+62) Fax: (+62) Tel: (+855) Fax: (+855)

30 28 EU-SINGAPORE TRADE & INVESTMENT 2010 Laos Delegation of the European Union to Lao PDR Sihom Commerce Center Building, Souphanouvong Avenue Vientiane Lao PDR Postal Address: P.O. Box 9325 Vientiane Tel: (+856) Fax: (+856) Malaysia Myanmar Delegation of the European Union to Malaysia Menara Tan & Tan, Suite Jalan Tun Razak, Kuala Lumpur Malaysia Tel: (+60) Fax: (+60) Delegation of the European Union to Thailand, Laos and Burma/Myanmar Kian Gwan House II, 19th floor 140/1 Wireless Road, Bangkok Thailand delegation-thailand@ec.europa.eu Tel: (+66) Fax: (+66)

31 EU-SINGAPORE TRADE & INVESTMENT Philippines Delegation of the European Union to the Philippines 30/F Tower II, RCBC Plaza 6819 Ayala Ave., Makati City 1200 Philippines Thailand Delegation of the European Union to Thailand Kian Gwan House II, 19th floor 140/1 Wireless Road, Bangkok, Thailand Tel: (+63) Fax: (+63) Tel: (+66) Fax: (+66) Singapore Delegation of the European Union to Singapore 250 North Bridge Road #38-03 Raffles City Tower Singapore Singapore Vietnam Delegation of the European Union to Vietnam 17th - 18th floor Pacific Place Office Building 83B Ly Thuong Kiet, Hanoi Vietnam delegation-singapore@ec.europa.eu delegation-vietnam@ec.europa.eu Tel: (+65) Fax: (+65) Tel: (+84) Fax: (+84)

32 30 EU-SINGAPORE TRADE & INVESTMENT 2010 European Chambers of Commerce in ASEAN Contact Information The European Chamber of Commerce in Indonesia Wisma 46, Kota BNI, 25th Floor Jl. Jend. Sudirman Kav. 1 Jakarta Indonesia info@eurocham.or.id European Chamber of Commerce of the Philippines Manila Office 19/F Axa Life Center Sen.Gil Puyat Avenue corner Tindalo Street Makati City, Metro Manila, 1200, Philippines Tel: (+62) Fax: (+62) EU-Malaysia Chamber of Commerce and Industry Suite 3.03, Level 3, Menara Atlan (Naluri) 161B Jalan Ampang, Kuala Lumpur Malaysia eumcci@eumcci.com Tel: (+60) Fax: (+60) inquiries@eccp.com Tel: (+63) Fax: (+63) Cebu Office 3/F C.L.Center, 14 J. Osmena St. cor Llorente St., Cebu City, 6000, Philippines cebu@eccp.com Tel: (+63) Fax: (+63)

33 EU-SINGAPORE TRADE & INVESTMENT European Chamber of Commerce in Singapore 350 Orchard Road #19-06 Shaw House Singapore Singapore Tel: (+65) Fax: (+65) European Chamber of Commerce in Vietnam Hanoi Office G/F Sofitel Plaza Hanoi 1 Thanh Nien Road Ba Dinh District Hanoi, Vietnam info-hn@eurochamvn.org Tel: (+84) Fax: (+84) Ho Chi Minh City Office 5th Floor, Eurocentre 49 Mac Dinh Chi Street Da Kao Ward, District 1, Ho Chi Minh City, Vietnam info-hcm@eurochamvn.org Tel: (+84) Fax: (+84)

34 32 EU-SINGAPORE TRADE & INVESTMENT 2010 About the EU Delegation to Singapore The Delegation of the European Union to Singapore was established in 2003 and it was officially opened in June 2004 by the former EU Commissioner, Mr. Chris Patten. As a diplomatic mission of the European Union representing the External Action Service, the Delegation works to enhance the visibility of the European Union and promotes closer ties with Singapore by providing an efficient and reliable communication channel between the European Union and the Singapore government. It also aims to promote people to people interactions by promoting intellectual, cultural and educational exchanges through the various events and programmes administered and carried out by the Delegation. The specific tasks of the Delegation to Singapore are to: represent the European Union in the execution of its competencies; enhance bilateral political, economic and commercial relations; monitor perception of European Union policies; promote and defend the values and interests of the European Union; and pursue an information and communication policy in line with the European Union s overall strategy in South-East Asia. The European Union has an overseas network of over 130 delegations and representations around the world.

35 Visitors from Europe are the second source of tourism in Singapore, after ASEAN, and ahead of China, the USA and Oceania Within the EU, the United Kingdom is the first source of visitors, followed by Germany, France and the Scandinavian countries. Over the past few years there has been an increase in the total number of visitors from Europe, making Singapore an important tourist destination. The EU allows its citizens to travel, live and work in any EU country, in most cases without border controls or paperwork The EU is constantly working to get rid of unnecessary borders and barriers to enable the free movement of people, goods and capital. Visitors also benefit from the Schengen visa arrangements, which now extend to 25 countries in Europe. If you get a visa for any Schengen country, it automatically allows you to travel to all countries within the group. The EU is a leader in combating climate change People in Europe are very environmentally conscious. So the EU is spearheading world efforts to preserve the environment and promote sustainable development. In recent years it has been important to get as many countries in the world to take action to avoid climate change. The EU is the biggest donor of development aid in the world The EU gives 56% of the world s total development aid; this amounts to about 48 billion a year or 100 per European citizen. The EU also works for trade rules that are fair for poor countries. Furthermore, the EU gives the 49 poorest countries in the world complete duty and tariff free access for goods, except arms and ammunition, under the Everything But Arms initiative. The EU has ensured that there has been no war between its members for over 60 years The EU rose from the ashes of World War II. It was set up to end the old hostilities that led to wars and to create prosperity through cooperation amongst all Europeans. The EU is now a family of 27 democratic European countries that share their efforts, ideas and resources to achieve peace and prosperity in Europe.

36 European Union Delegation of the European Union to Singapore 250 North Bridge Road #38-03 Raffles City Tower Singapore Tel: Fax: Printed on 1 July 2010