Print

Mail

wiki links

Singapore nears a free trade deal with the US

In trade we trust * The US is the biggest buyer of Singapore-made goods. * New "fast-track" trade powers granted to US President George W. Bush are expected to speed up ongoing negotiations with the city-state. * An agreement with the US is expected to help spur free-trade agreements with other countries in the region. * Analysts say that about 80 percent of the new trade deal with the US has already been finalized.

Singapore's hopes of sealing a free trade agreement (FTA) with the US this year have received a huge boost after President George W. Bush gained new powers to negotiate such pacts.

"We are now one step closer to completing agreements like the US-Singapore free trade agreement," said Nicholas de Boursac, executive director of the American Chamber of Commerce (AmCham) in Singapore.

"AmCham Singapore is a vigorous supporter of a robust free trade pact between the US and Singapore, and the trade promotion authority (TPA) will strengthen the US ability to conclude effectively these negotiations."

Also known as "fast-track" powers, the TPA restricts the US Congress to a simple "yes" or "no" vote -- but no amendments -- once the president signs a trade deal.

The US president has been without such powers since April 1994 and efforts to renew them since then have failed on largely partisan differences over the treatment of labor and environmental issues in trade talks.

"We will move quickly to build free trade relationships with individual nations, such as Chile and Singapore and Morocco. We will explore free-trade relationships with others, such as Australia," Bush said last week after securing the TPA.

Singapore's Trade Minister George Yeo said the TPA would make it easier for both sides to conclude negotiations by the end of this year.

Singapore ambassador to the US Chan Heng-chee told the city-state's Straits Times daily that "the TPA will provide guidance for the language on some issues that are not yet settled in bilateral trade agreements."

"For Singapore, the TPA is useful because we're coming to the conclusion of the free-trade agreement negotiations," Chan said.

The deal was first mooted by Singapore Prime Minister Goh Chok-tong and former US president Bill Clinton, and both sides had hoped to ink it before Clinton left office in January 2001.

But several issues, including financial and legal services, are understood to be blocking the conclusion of the deal.

Still, the two sides have managed to conclude at least 80 percent of the proposed pact and the new trade powers granted to Bush would speed up ongoing negotiations, analysts said.

The US is the biggest buyer of Singapore-made goods and sealing an FTA with the world's biggest economy will be a sweet coup for the tiny Southeast Asian state which has suffered a barrage of criticism for pursuing bilateral trade deals with several countries.

"The symbolism is that this is the largest economy in the world, so it means it will be easier for Singapore to talk to other blocs or countries," said Song Seng-wun, regional economist at GK Goh brokerage house.
This story has been viewed 1514 times.