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S’pore to discuss way forward with TPP partners after US’ pull-out: MTI

SINGAPORE — Following the United States’ formal withdrawal from the 12-nation Trans-Pacific Partnership (TPP), Singapore will have to discuss the way forward with the other TPP partners as the agreement cannot come into effect without the US, said the Ministry of Trade and Industry (MTI) on Tuesday (Jan 24).

Then US President Barack Obama (centre) meets with the leaders of the Trans-Pacific Partnership (TPP) countries in Beijing November 10, 2014. Reuters file photo

Then US President Barack Obama (centre) meets with the leaders of the Trans-Pacific Partnership (TPP) countries in Beijing November 10, 2014. Reuters file photo

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SINGAPORE — Following the United States’ formal withdrawal from the 12-nation Trans-Pacific Partnership (TPP), Singapore will have to discuss the way forward with the other TPP partners as the agreement cannot come into effect without the US, said the Ministry of Trade and Industry (MTI) on Tuesday (Jan 24).

Responding to TODAY’s queries, a MTI spokesperson reiterated that the Republic is committed to “pursuing a rules-based trading system and greater regional integration”. “The agreement that the TPP parties has negotiated is one such pathway to achieve stronger trade linkages that will promote growth opportunities and job creation in all the member countries,” she said. She added: “We will have to discuss the way forward with the other TPP partners. Each of the partners will have to carefully study the new balance of benefits.”

Following through on a promise he made on his election campaign last year, US President Donald Trump signed an executive order on Monday to withdraw the US from the TPP pact. Singapore has actively backed the TPP  but analysts have noted that its demise will not be a significant blow to the Singapore economy and the Republic could, in fact, enhance its status as a trade link between the US and Asia as a result. Nevertheless, the Republic has to watch out for ramifications from protectionist politics, which, if widespread, can be harmful for the trade-dependent economy in the long run, the analysts said.

Prime Minister Lee Hsien Loong had, in the weeks following Mr Trump’s election victory, previously stated the Government’s intention to push ahead to amend legislation and bring the TPP into effect by early this year. But the MTI spokesperson said: “We will have to discuss the way forward with the other TPP partners. Each of the partners will have to carefully study the new balance of benefits.”

In his New Year’s message, Prime Minister Lee Hsien Loong said that while prospects for the TPP have dimmed, Singapore continues to pursue other avenues of economic cooperation, such as  the Regional Comprehensive Economic Partnership (RCEP).  The China-led RCEP involves 10 members of the Association of Southeast Asian Nations as well as six regional trading partners China, Japan, South Korea, Australia, New Zealand and India. The MTI spokesperson reiterated that Singapore will continue to participate in other ongoing regional integration initiatives, including the RCEP and the proposal for a Free Trade Area of the Asia-Pacific. 

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