The Trade in Goods section provides for immediate tariff elimination on all Singapore or Australian products entering the Australian and Singapore markets respectively, thereby reducing the cost burdens for Singapore businesses exporting to Australia. Savings from these preferential tariff concessions will enable Singapore exports to be more competitive vis-à-vis other foreign exports to Australia. Singapore exporters can leverage on this competitive edge to either strengthen their current market share in Australia or penetrate the Australian market.

In the long run, such cost incentives are likely to attract more businesses to site their operations in Singapore to tap on the preferential concessions from SAFTA.