The Trade in Services Chapter will bind Parties to their current levels of liberalization as well as any future liberalization in most sectors. New Zealand and Chile have significantly improved on their commitments at the WTO, thus granting Singapore
service suppliers preferential treatment over their competitors from other countries in sectors like medical services, private education services, computer and related services, construction services, real estate services and distribution services.

The Chapter will initially not apply to Brunei. Instead, it will have two years after entry into force of the agreement, to prepare, negotiate and finalise its commitments under the Chapter.

The other main features of the Chapter are as follows:
Beneficiaries - Singapore service suppliers with business operations in Singapore, provided they are not shell companies, will be able to take advantage of the benefits under this agreement.

Sectoral coverage - The Chapter takes a negative list approach, which starts from the premise that all sectors are open, except for those measures or sectors which have been expressly reserved. Under this approach, Parties have listed in Annex III existing measures that do not conform to the agreement but which they intend to
Maintain. Listed in Annex IV are the sectors in which Parties are free to take any measures.

Domestic Regulation - There are also disciplines on domestic regulation to ensure that Parties impose measures in a manner that is reasonable, objective and impartial.

Most Favoured Nation - If in the future, a Party grants more favourable treatment in any sector to any other country, that Party will be required to extend the same treatment to the other Parties. This means that Singaporean service suppliers will be able ride on any further commitments by Chile and NZ in their future FTAs with other countries.