Singapore-New Zealand ink world’s first essential supplies pact

In a landmark for global trade, Singapore and New Zealand have concluded an Agreement on Trade in Essential Supplies (AOTES), described as the world’s “first-of-its-kind legally binding bilateral agreement to enhance supply chain resilience and to help ensure the continued flow of essential supplies”.

The AOTES signing on 4 May 2026 comes on the back of the two countries having signed a Comprehensive Strategic Partnership (CSP) in October 2025. Amid subsequent global supply chain disruption brought about by closure of the Strait of Hormuz, the two countries moved quickly to sign the AOTES.

One aim of the AOTES is to keep essential goods flowing between the two countries during times of crisis, strengthening food and fuel security between the countries. Notably, around a third of New Zealand’s refined fuel supply is from Singapore.

This article provides a brief overview of the provisions of the AOTES and potential legal implications.

Scope of essential supplies provisions

(1) Scope of application. The agreement applies in the event of a “supply chain disruption” or “imminent supply chain disruption”, and only to “essential supplies traded between the parties”.

A “supply chain disruption” is defined as a “severe interruption, delay or shortage that (i) impacts either or both parties; and (ii) significantly impairs production of the cross-border movement of, or access to, materials, articles or commodities or the delivery of related services – including but not limited to essential services”. Some examples of such disruptions are expressly provided for, such as pandemics and armed conflict.

“Essential supplies” means products listed in the appendix to the agreement, with examples such as petroleum products and medicaments for New Zealand, and meat, fish, milk and other food products for Singapore.

(2) No unnecessary export restrictions. The operative parts of the agreement provide mainly that, in the event of a supply chain disruption to the flow of essential supplies, “each party shall work to facilitate communication with logistics provider” and “to the extent practicable, and at the earliest opportunity, co-operate to keep ports and terminals open, allow merchant ships or planes to continue to berth to carry out cargo operations, facilitate the transfer of cargo and crew where necessary, and to explore streamlining of smoother customs processes”.

The agreement further mandates that each country “shall, to the extent practicable, lift movement restrictions to restore any disrupted transportation and logistical services at the earliest opportunity to facilitate the efficient movement of essential supplies”.

(3) Framework for consultation and transparency. The AOTES further establishes various mechanisms for, among other things, information sharing and engaging in consultations before or during supply chain disruptions. Under the framework of consultation, each country has committed to supporting the other country’s response to supply chain disruption, in which support may include facilitating business matching, exploring and facilitating joint procurements, delivery of essential supplies, and encouraging enterprises to uphold existing commercial contracts.

Legal implications of AOTES

As can be seen, the AOTES primarily deals with interstate obligations. As far as private businesses in the two countries are concerned, the agreement mainly requires the two governments to facilitate communications with the private sector, or encourage the private sector to meet the obligations under their respective contracts.

In times of disruption, businesses in both countries providing essential supplies to the other country can expect more support and supervision from the governments.

The AOTES provides more certainty to businesses operating in both countries by assuring them that the governments will as far as possible avoid restrictions against export of essential supplies to the other country.

As an interstate agreement, the AOTES means that it does not (yet) have any direct effect on private contracts. As far as Singapore is concerned, no domestic legislation has yet been passed to give effect to it. It remains to be seen how the AOTES may be implemented domestically.

However, as Singapore and New Zealand continue to openly invite other countries to consider and join similar arrangements, businesses may expect to see more such agreements between countries, which will ultimately have an impact on the flow of trade and logistics across the region or globally.

Peter Huang is an associate director and Ahmad Noorfahmy is a senior associate at Helmsman in Singapore.