The trade deal between the European Union and Singapore — which came into force late last month — is good news for Port of Hamburg as it is seen to boost trade volumes between Europe and Asia.

Port of Hamburg said with the Trade Agreement, Singapore will remove all trade barriers on EU products and cut down on mass bureaucracy allowing trade to flourish.

“The Trade Agreement between the EU and Singapore will produce additional upswing for seaborne foreign trade in the Port of Hamburg and benefit national economies in the EU and Singapore,” said Axel Mattern, Joint CEO of Port of Hamburg Marketing.

The Port of Hamburg noted almost 10,000 German-based companies trade with Singapore as German products are keenly sought in the region whether machinery and plant, special steels, or furniture, chemical products, and foodstuffs.

Second-largest seaborne trade partner

Singapore was the Port of Hamburg’s second strongest partner country for seaborne container handling after China. in 2018.

The port said the number of containers transported between the two ports reached 380,000 TEUs. A total of 4.3 million tons of seaborne cargo were also transported between Hamburg and Singapore in 2018.

In the first nine months of 2019, the statement said, container transport between Hamburg and Singapore rose to 305,000 TEU, rising 4.1%  compared to 2018.

Handling 36.6 million TEU in 2018, Singapore is also the world’s second-largest port for seaborne container handling after Shanghai.

"Singapore’s port functions as a vital trading hub for further distribution of freight in the region. For instance, freight traded in direct container traffic between Hamburg and Singapore is transhipped there to neighbouring countries in the region," Port of Hamburg said.

At present, 15 liner services connect the Port of Hamburg with Singapore, nine for containers and six for general cargo. Some of these also accept heavy and wheeled cargo. 

"The Agreement gives EU service providers fresh opportunities to offer their expertise and to submit tenders in public competitions, among other things for telecommunications, environmental and engineering services, IT and sea transport."

This is the first bilateral trade deal between the EU and a state in SE Asia. 

Bilateral annual trade in goods already reaches 53 billion euro; and in services, 51 billion euros. This makes Singapore the EU’s largest trading partner in SE Asia by a wide margin.