Singapore and New Zealand have signed an Agreement on Trade in Essential Supplies (AOTES), committing both countries not to impose export restrictions on covered goods for the other during a crisis, in a move described by the governments as a world first.
The agreement, signed on 4 May, is intended to strengthen fuel security for New Zealand and food security for Singapore. It will be incorporated into the existing New Zealand–Singapore Free Trade Agreement, subject to domestic approval processes in both countries.
Around one-third of New Zealand's refined fuel supply is sourced from Singapore, giving the pact particular relevance for fuel markets. While largely procedural, AOTES may provide additional confidence to market participants by translating political assurances into a legally binding framework.
"With a third of New Zealand's fuel refined in Singapore, this agreement turns trust into action, helping keep fuel flowing to New Zealand when it matters most," New Zealand prime minister Christopher Luxon said.
The agreement follows a mid-April move by Australia and Singapore to fast track a legally binding framework aimed at safeguarding the flow of energy and other essential supplies between the two countries. That arrangement reaffirmed mutual commitments to energy security but stopped short of guaranteeing supply or priority access during severe shortages, highlighting the limits of bilateral assurances in globally traded markets and the much larger trade volumes between the countries compared with that of Singapore and New Zealand.
