The Agreement provides for mutual recognition of test reports and/or certificates issued by the exporting country to testify that they meet with the mandatory requirements of the importing country. This means that products would be already customized for the intended market and removes the need for duplicative testing and/or certification in the importing country before the product can be sold. Hence, companies will be able to obtain savings on the cost of duplicative testing and/or certification.

It extends the coverage to sanitary and phytosanitary measures (SPS). This is significant as Australia is our 2nd largest source of meat and meat products and our 3rd largest source of fruit and vegetables. For cut orchids and other foliage, Australia is our 3rd largest export market, after Japan and US.

Customs clearance of products included in the agreement is also expected to be faster. Due to the emphasis placed on the freshness of the perishable products, this fast track will enhance the competitiveness of Singapore's exports when compared to those from other countries.

The provision for regular exchanges and updates regulatory requirements between Singapore and Australia will also help to speed up at the source. Australia will also notify Singapore promptly on any proposed changes to its mandatory requirements, hence allowing Singapore exporters more time to comply with the new requirements before they come into effect.