Impact of Free Trade Talks and Agreements on Singapore

Assoc Prof Tan Kheng Boon Eugene asked the Minister for Trade and Industry (a) if he can provide an update and assessment of the WTO talks on global trade liberalisation and Singapore's position vis-a-vis the failed Doha round; (b) how does the proliferation of Free Trade Agreements (FTAs), especially in Asia, complement and undermine the WTO trade system notwithstanding their being "WTO-plus"; and (c) what mechanisms are in place to strengthen local business support for FTAs and facilitate their being able to benefit from the various FTAs that Singapore is a party to.

Page: 154

The WTO is active in trade negotiations, although the Doha Development Agenda (DDA) faces challenges. Several attempts have been made since the DDA's near successful conclusion in 2008 to try to take the negotiations forward. WTO Members are currently working intensively on three of the DDA issues, namely: (a) Trade Facilitation; (b) Agriculture; and (c) Development. If these efforts yield good outcomes at the WTO's Ninth Ministerial Conference (MC9) in Bali from 3 to 6 December 2013, there could be renewed momentum on other DDA issues in the future.

Notwithstanding the progress of negotiations, the WTO is more than just the DDA. The WTO also provides a predictable, transparent, and rules-based global trading environment. The regular work of the WTO prevents trade protectionism through vigilant monitoring of WTO members' trade protectionist measures and by enforcing trade rules via the WTO’s dispute settlement mechanism. Such work is significant in contributing to global trade liberalisation.

FTAs can complement and support the WTO. They are building blocks to the multilateral trading system. The benefits of economic openness through the various FTAs and regional links contribute to maintaining momentum for global trade liberalisation.

With this in mind, Singapore has 20 bilateral and plurilateral FTAs with our trading partners in force. IE Singapore undertakes a number of initiatives to create awareness and promote the use of FTAs to our business communities. For example, IE Singapore works closely with Trade Associations and Chambers such as the Singapore Business Federation to conduct FTA seminars and workshops. Through its FTA Certificate Programme, IE Singapore also provides structured training to companies and consultants to help them build in-depth FTA expertise and capabilities.

For companies which need customised advice on how to take advantage of FTAs or overcome implementation problems, IE Singapore provides free one-to-one consultations. MTI and IE Singapore also continually seek company feedback on FTA-related issues, with a view of including these in subsequent reviews and negotiations, to ensure that Singapore's FTAs remain relevant and useful for business communities.

Page: 155