Singapore is a highly trade-dependent economy, with the highest trade to GDP ratio in the world. Not only are we heavily reliant on imports as our only source of food, energy and industrial raw materials, our small domestic market also means that our industries must rely on overseas export markets to absorb their outputs. Furthermore, trade activities have historically been and continue to be an important source of economic wealth for the country.

We are therefore free traders, implementing practically no barriers to the free flow of goods in and out of Singapore, and a vocal champion of global free trade. The primary objective of our trade policy is to guard our trading interests by ensuring a free and open international trading environment.

This is why Singapore places the highest priority on the multilateral trading system embodied by the World Trade Organisation (WTO). The WTO provides the stable framework for developing sound multilateral rules that ensure that goods and services can flow freely with minimum impediment.

But while we are unequivocal supporters of the WTO, we also strongly believe that trade efforts undertaken in regional fora such as APEC, ASEM and ASEAN, as well as under bilateral Free Trade Agreements (FTAs) can accelerate the momentum of trade liberalisation and strengthen the multilateral trading system. As legally binding arrangements between willing member countries, FTAs enhances trade and investment flows by providing lower tariffs for exports of goods, hassle-free custom procedures, improved market access for various commercial and professional services, easier entry for our businessmen into other countries, better terms for investment in foreign countries etc. It sets a framework for our businesses to grow and expand globally, which in turn will generate more employment opportunities for Singaporeans.

Singapore therefore aims to conclude FTAs with our major strategic trading partners. Our negotiations with New Zealand have been completed. Negotiations with Mexico commenced in late July. We are also conducting FTA studies with Japan and Canada, and hope that formal negotiations will commence once the feasibility studies are completed.

It is with the business community in Singapore and Singaporeans in mind that the Government of Singapore is advancing our trade interests through the multilateral and regional trade fora and through FTA linkages with our key overseas markets. The Ministry of Trade & Industry is therefore keen to hear the views of the business community and the people of Singapore on how our efforts could further the interests of the private and people sectors of Singapore.  In particular, we welcome views, comments and discussions on our ongoing FTA initiatives.

Your feedback is valuable. Please share your views with us by posting a note here.

Khaw Boon Wan

Permanent Secretary

Ministry of Trade and Industry

August 2000