FREE TRADE AGREEMENTS (FTAs)

Overview

Singapore has since 1999, pursued a dual track of negotiating multilateral trade agreements as well as bilateral Free Trade Agreements. Singapore's key interest lies in establishing FTAs that are WTO-consistent and WTO-plus with our key trading partners, thus complementing the multilateral process of advancing global free trade.

Since the signing of her first FTA under the ASEAN Free Trade Area (AFTA) in 1993, Singapore's network of FTAs has expanded to cover 18 regional and bilateral FTAs with 24 trading partners. Singapore's FTAs have been instrumental in helping Singapore-based businesses strengthen cross-border trade by eliminating or reducing import tariff rates, providing preferential access to services sectors, easing investment rules, improving intellectual property regulations, and opening government procurement opportunities.

Singapore has FTAs with Australia, China, India, Japan, Jordan, Korea, New Zealand, Panama, Peru, the United States, the European Free Trade Association, the Gulf Cooperation Council, as well as the Trans-Pacific Strategic Economic Partnership (TPP). Most recently, in January 2010, we successfully concluded negotiations with Costa Rica on an FTA. Both sides are now working expeditiously towards the signing of the Agreement.

The TPP came into effect in 2006 with Singapore, Brunei, Chile and New Zealand as its original members. It is the first plurilateral FTA initiative that links four different economies from three different continents across the Pacific. Currently, with Australia, Peru, United States and Vietnam participating in negotiations to expand the TPP, it will serve as a good platform towards greater regional economic integration in the Asia-Pacific region.

On 22 December 2009, negotiations for an FTA with the European Union were launched. The EU-Singapore FTA (EUSFTA) marks a milestone in Singapore's longstanding relations with the EU. The first round of negotiations took place from 8 – 12 March 2010 in Singapore.

Within ASEAN, Singapore is committed to the creation of the ASEAN Free Trade Area. ASEAN has also signed FTAs with major regional economies such as China, India, Japan, Australia and New Zealand and Korea. ASEAN is currently in negotiations for the services and investment chapters with India.

Beyond advancing our economic interests, these intra and inter-regional FTAs help build a web of strategic linkages for Singapore within the region and with countries outside the region. They serve the broader interest of anchoring the presence of our major trading partners in Southeast Asia and ensuring that they remain stakeholders here. These FTAs also help to sustain an open regional orientation and prevent the formation of inward-looking trading blocks. This web of interlocking economic and strategic interests will contribute to regional stability, prosperity and security.

THE COMMONWEALTH

Recent Highlights

• Deputy Prime Minister (DPM) and Minister for Home Affairs Wong Kan Seng led the Singapore delegation to the biennial Commonwealth Heads of Government Meeting (CHOGM) in Kampala, Uganda from 23-25 November 2007. Senior Minister of State for Foreign Affairs Zainul Abidin Rasheed represented Minister George Yeo at the pre-CHOGM Foreign Ministers Meeting. This CHOGM, which was themed "Transforming Commonwealth societies to achieve political, economic and human development", also provided a platform to discuss the issues of climate change, development and trade and economic co-operation.

• Commonwealth Secretary-General Kamalesh Sharma made his introductory visit to Singapore from 6-8 August 2008. Sharma was elected Commonwealth Secretary-General at the 2007 CHOGM.

Overview

Singapore joined the Commonwealth in October 1965 after gaining independence. In 1971, Singapore hosted the first Commonwealth Heads of Government Meeting (CHOGM). The Declaration of the Principles of the Commonwealth was adopted at this conference. The Commonwealth's relatively smaller size (currently 53 members), commonality of language and similarities in historical experiences and political institutions among member countries, makes it a useful forum for its member states to discuss issues of common concern. Singapore regularly participates in the Commonwealth Heads of Government Meetings held once every two years. The 2009 CHOGM will be held in Trinidad and Tobago. Singapore has also contributed to the work of the Commonwealth through, among others, the Singapore-Commonwealth Third Country Training Programme (TCTP) under the Singapore Cooperation Programme which offers training courses to Commonwealth members.

NON-ALIGNED MOVEMENT (NAM) & GROUP OF 77 AND CHINA (G77)

Recent Highlights

• 2PS (Foreign Affairs) Bilahari Kausikan led the Singapore delegation to the XVth Ministerial Conference of the Non-Aligned Movement NAM in Tehran from 27-30 July 2008. The theme of the Conference was "Solidarity, Justice and Peace". The Conference served as a mid-term review between the XIVth Summit of the Heads of State and Government that took place in Havana from 11-16 September 2006, and the XVth Summit, which will take place in Cairo from 11-16 July 2009.

Overview

NAM and G77 have long been key vehicles through which developing countries discuss matters of common concern. Singapore believes that these organisations will continue to be effective platforms for members to voice their concerns and cooperate on issues of mutual interest.

UNITED NATIONS (UN)

Overview

Singapore joined the UN upon its independence in 1965. As a small nation-state, Singapore has benefited significantly from UN membership. Small states like Singapore now comprise more than half of the UN membership. We believe that small states can, collectively and through closer cooperation, play a greater and more meaningful role in the United Nations. In his speech to the 63rd UN General Assembly in 2008, Foreign Minister George Yeo stated that smaller countries can turn the emerging multipolar reality to their advantage if they combine their strengths in international institutions such as the UN. He added that the UN plays a "civilizing role," channelling big power rivalry and ensuring that "the common interests of the human family" are not disregarded.

The UN Charter represents a major advance in the international relations of nation-states. Its principles of sovereign equality, the peaceful settlement of disputes and non-interference in the internal affairs of states are especially precious to small states. The principle of "one state, one vote" in the General Assembly has also helped to give small states a voice in international affairs. It ensures that the views, interests and concerns of small states are taken into consideration in world affairs. The UN has made the world a safer and better place for smaller states.

Singapore believes in the need to develop a strong, cohesive and effective UN that is responsible to the needs of its members. The UN needs to be constantly revitalised to meet the challenges of the 21st century. Singapore firmly supports and participates actively in the continuing process of UN Reform. Singapore also believes that as the UN is the only global body with universal participation and unquestioned legitimacy, other global processes like the G20 should recognise and reflect this reality. In this regard, groups like the Global Governance Group (3G), comprising of small and medium sized states, which Singapore has helped to form at the UN, can help to strengthen the framework of engagement between the G20 and non G20 members so that the actions and decisions of processes like the G20, complement and strengthen the UN.

Singapore has worked closely in supporting UN agencies such as the UN Department for Political Affairs and the UN Office for Coordination of Humanitarian Affairs in their work in the region. For instance, Singapore supported the efforts of the UN Secretary-General’s Special Envoy on Myanmar, Ibrahim Gambari, to promote national reconciliation and a political solution in Myanmar following internal unrest in the country in September 2007. As ASEAN Chair from November 2007 to July 2008, Singapore also helped to organise the ASEAN-UN Pledging Conference in May 2008 following Cyclone Nargis.

UNITED NATIONS SECURITY COUNCIL (UNSC)

Overview

To demonstrate Singapore's willingness to take on additional responsibilities in support of the UN and its activities, Singapore sought and was elected, for the first time, to a non-permanent seat in the UN Security Council for 2001-2002. Singapore's UNSC term ended in December 2002.

During our term on the Security Council, Singapore's approach was guided by our consistent support for principles of international law, observance of the UN Charter and compliance with resolutions of the Security Council. Singapore sought to bring the perspective of small states to the work of the Council and to reflect the concerns of developing countries. Singapore also tried to make the Council more transparent and accountable to the larger UN membership. Finally, Singapore sought to improve the credibility of the UNSC by making it more effective and responsive and in the long run, create a situation where the interests of small states are served by a Council which operates in a norm-based system.

WORLD TRADE ORGANISATION (WTO)

Overview

As a small but vibrant trading nation, Singapore strongly supports an open, rules-based, multilateral trading system under the World Trade Organisation (WTO). Singapore has been a WTO member since 1 January 1995, and hosted the 1st WTO Ministerial Conference (MC) in December 1996. Since then, Ministerial Conferences have been held in Geneva in 1998, Seattle in 1999, Doha in 2001, Cancun in 2003 and Hong Kong in 2005. The 7th and most recent Ministerial Conference was held in Geneva from 30 November to 2 December 2009.

Doha Development Agenda

Singapore strongly supported the launch of the Doha Development Agenda (DDA) at the 4th WTO MC in Doha, Qatar, in November 2001. The launch of the DDA gave a strong signal of continued global commitment to an open trading system, as well as the undertaking of positive efforts to ensure that developing and least-developed countries could secure a share in the growth of world trade commensurate with their economic development. Singapore remains committed to the DDA. The 2009 APEC Leaders' Declaration in Singapore reaffirmed their commitment to free trade and open markets, as well as the rejection of all forms of protectionism, especially through an ambitious and balanced conclusion to the Doha Round. The successful conclusion of the DDA negotiations will provide a strong boost to global economic recovery, as well as a set of strengthened and updated WTO rules and commitments that will help anchor renewed global growth and development. Singapore has thus been playing an active and constructive role in the DDA negotiations and is a firm supporter for its successful conclusion.  

Singapore-WTO Memorandum of Understanding (MOU)

Singapore and the WTO concluded a MOU in 1996 to establish a Third Country Training Programme (TCTP), and we have annually provided joint training programmes in trade and other WTO-related matters for the Asia-Pacific region. Singapore was also chosen by the WTO to hold the WTO Regional Trade Policy Course (RTPC) for the Asia-Pacific region from 2007 to 2010. The inaugural RTPC in Singapore was successfully conducted by the National University of Singapore (Law Faculty), jointly with the WTO, for participants from all over the region from 12 March to 30 May 2007. The RTPC is modelled largely after the Trade Policy Course conducted at the WTO headquarters in Geneva, but with a greater emphasis on regional trade issues.