Deputy Prime Minister Gan Kim Yong said that Asean economic ministers are committed to deepening their partnership and will soon conclude negotiations for an upgrade to Asean Trade in Goods Agreement (ATIGA).
At a media doorstop on Friday (May 16), DPM Gan, chairman of the Singapore Economic Resilience Taskforce (SERT), provided an update on the taskforce's focus areas, reiterating its three-pronged approach to help businesses and workers cope with the current uncertainty caused by sweeping tariffs imposed by the United States.
He highlighted the importance of strengthening Singapore's partnership with key trading partners, particularly within Asean, to bolster the economy.
While Singapore and its trading partners may face heightened tariffs from the US, it has stepped up collaboration with Asean and is close to completing negotiations for ATIGA by the end of this month, he said.
ATIGA is a free trade agreement (FTA) started in 2009 between Asean members that aims to reduce trade barriers and deepen economic links between member states.
Over 90 per cent of goods within ATIGA are tariff-free at the moment, and the upgrade aims to increase the number of products in the FTA, according to DPM Gan.
"We try to push the boundary a bit further every time when we do an upgrade," he said.
He also mentioned that ATIGA is working to reduce non-tariff barriers to facilitate trade, citing an example of standardising customs clearance forms so that processes can be streamlined and made more efficient.
"I think this signals Asean members' commitment to deepen our integration and to strengthen our cooperation among our members," he added.
The Deputy Prime Minister also mentioned that Asean members are engaging with organisations such as the European Union and the Gulf Cooperation Council to explore greater trading opportunities.
"I think this will allow us to open up more markets for our exports, and at the same time, to also open up more sources of supply to strengthen our supply chain resilience," he said.
Concessions on sectoral tariffs
Singapore is currently in talks with the US regarding concessions for sectoral tariffs, or targeting products within defined sectors such as pharmaceuticals, which are currently exempted from tariffs.
Based on discussions with US Treasury Secretary Scott Bessent, the US is unlikely to back down on the 10 per cent baseline tariffs.
Instead, it has extended a "significant opportunity" to discuss "some form of concession for Singapore to have an official preferential tariff, even to the extent of zero tariff for pharmaceutical exports to the US", said DPM Gan.
He also mentioned potential sectoral tariffs on semiconductors which the US is "happy to discuss with Singapore", though details are currently unavailable.
"It's going to be a long engagement and consultation and negotiation with the US and Singapore before they're able to share more details," he said, adding that updates will be provided when available.
Source: Asiaone
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<p>Time: 2024 By: Ministry of Industry and Trade</p>
