The Agreement between Japan and the Republic of Singapore for a New-Age Economic Partnership Agreement (JSEPA) marked a major milestone of our bilateral relations with Japan. It was Japan's first Free Trade Agreement (FTA). The agreement was signed by then-PM Goh and then-PM Koizumi on 13 January 2002 in Singapore and came into force on 30 November 2002.

JSEPA has brought substantive benefits to Japan and Singapore by laying a solid foundation for firmer economic linkages and integration between the two countries. Under the existing JSEPA, Japan increased its zero-tariff commitments from 34% of total tariff lines under WTO to 77%. JSEPA also liberalised trade in services significantly, expanding its commitments from 103 services sectors under WTO to 135.

The JSEPA Review was launched in April 2006. Both countries reached an agreement in principle on the major elements of the revised JSEPA, in January 2007. The revised JSEPA was signed by the Prime Ministers of Singapore and Japan on 19 March 2007. The tariff concessions came into effect in January 2008, whilst the other amendments to the agreement will be effected after it has undergone the necessary legislative processes in the respective parties.

The revised JSEPA results in improved market access for goods, revised rules of origin, improved specific commitments for financial services, revised customs procedures and technical alteration to provisions on competition.