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Singapore ratifies key multlateral trade pact

This article is more than 12 months old

Republic is third country to ratify the agreement, which will benefit businesses

Singapore has ratified a key regional trade deal that looked dead and buried 18 months ago after President Donald Trump said the US would not sign on.

Regional leaders revived the wide-ranging pact and in March inked a deal.

Singapore's formal adoption of the deal makes it the third nation to ratify the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) after Mexico and Japan.

The deal will foster trade and reduce market barriers, the Trade and Industry Ministry (MTI) said yesterday.

Prime Minister Lee Hsien Loong noted in a Facebook post that "amid growing trade tensions and anti-globalisation sentiments, the CPTPP signals Singapore's commitment to free trade and a rules-based trading system".

He also thanked the MTI team for their hard work on this project over many years.

Trade and Industry Minister Chan Chun Sing called the CPTPP an important agreement that will complement Singapore's existing network of bilateral trade deals.

"It will strengthen trade among countries in the Asia-Pacific, resulting in a more seamless flow of goods, services and investment," he said.

The CPTPP, which is a revision of the original Trans-Pacific Partnership after the US withdrew from it in January last year, will foster trade in a combined market of 500 million people with a gross domestic product of US$10 trillion (S$13 trillion).

The historic pact establishes rules in new areas, such as e-commerce and will enter into force 60 days after six of the 11 signatories ratify the agreement.

Mexico was the first to ratify the agreement in April, with Japan following suit on July 6. The other countries in the bloc are Australia, Brunei, Canada, Chile, Malaysia, New Zealand, Peru and Vietnam.

All businesses are expected to benefit. Mr Chan noted on Facebook that the pact "also promotes innovation, productivity, competitiveness and inclusive trade, bringing benefits to even small and medium-sized businesses".

Foreign Affairs Minister Vivian Balakrishnan also posted that the deal "will create more economic opportunities for Singapore companies, which will be better placed to tap on growth opportunities and increased market access in the Asia-Pacific".

Talks on the CPTPP concluded on Jan 23 in Tokyo. The agreement was signed on March 8 in Santiago, Chile.

Singapore companies interested in business opportunities in CPTPP countries can contact Enterprise Singapore at enquiry@enterprisesg.gov.sg or visit the MTI website for more information.

BUSINESS & FINANCE