SINGAPORE, AUG 28: Singapore government has said that even as India signed the much-hyped Comprehensive Economic Co-operation Agreement (CECA) with Singapore one year ago, the customs authorities at the Indian ports are yet to implement the provisions of the agreement. They said pre-CECA tariff regime continued to exist for Singapore-based exporters.

The Singapore government has already taken up with issue with India's trade and industry minister Kamal Nath. Though the exact amount of losses due to the non-implementation of the CECA at the ground level is yet to be estimated, the Singapore Indian Chamber of Commerce and Industry said it could run into a "few million dollars."

Pradeep K Menon, executive director, SICCI said that information on the same is yet to percolate down to the state and zonal level to make the CECA a success story. The chamber has also been pressing for a one stop redressal centre to sort out the teething problems.

Interestingly, trade between India and Singapore, estimated at $10 billion, showed a 45% growth in 2005 while the growth rate in 2004 was 52%. Menon, however, said that earlier due to a smaller base, it was possible to register a growth rate of over 52% . "It has nothing to do with CECA, with a minuscule base, it is only natural to have a very high growth rate and once the base starts growing, it is not possible to grow at the same pace," he pointed out.

Meanwhile, Singapore Economic Development Board (EDB), the lead agency for planning and executing strategies to promote investment into the country, admitted that the agreement is tilted in Singapore's favour. But it said that India, which is trying to become a global economy would benefit more from it. "The agreement may be uneven and could be favouring Singapore, but India is a large country and can offer much more," Chua Taik Him, assistant managing director, EDB said. He also said that India must change its "mindset" to make CECA a success story.

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