WASHINGTON D.C. — Singapore is seeking to attract a new wave of American investment, visiting Prime Minister Lee Hsien Loong told United States business leaders as he urged them to lend their strong support to ratifying the landmark Trans-pacific Partnership (TPP) economic pact.

While acknowledging the economic anxieties among ordinary Americans, Mr Lee called on Washington to resist protectionism and secure its economic future by ratifying the TPP.

“For American friends and partners, ratifying the TPP is a litmus test of your credibility and seriousness of purpose,” he told an audience of almost 200 during a reception hosted by the US Chamber of Commerce and US-Asean (Association of South-east Asian Nations) Business Council on Tuesday (Aug 2, Singapore time).

In his speech, Mr Lee pointed out that strategically, the TPP is “vital” to the US’ engagement in the Asia-Pacific.

“It will add substance to the Asia ‘rebalance’, which cannot just be about the military or the Seventh Fleet (based in Japan),” he said, adding that the TPP will enable the US and its TPP partners to shape the norms of regional economic architecture by setting a high bar for future trade agreements, both in the Asia-Pacific and beyond.

Mr Lee noted that politically, this has been a tough election year for the US because Americans are wary of US active global engagement and economic uncertainty has caused concern about jobs and competition from overseas.

“While these are all understandable and even valid concerns, we hope that all sides will focus on the longer-term picture. There are no winners, only losers with protectionism,” he said.

He said if the US wants to secure interests for the future, it must ratify the TPP or lose this opportunity, adding that every TPP signatory had to make sacrifices to accept the agreement and there is no appetite to re-open negotiations again with “no prospect of doing better and every chance of having it fall apart”.

“Asian countries want America to be engaged. We need to know that this engagement will be sustained. And we need to know that agreements will be upheld. And that Asia can depend on America,” he added.

The US-led TPP, which accounts for around 40 per cent of the world’s total economic output is yet to be ratified by the US and countries including Japan.

The TPP’s future has been plunged in doubt as the two US presidential candidates, Ms Hillary Clinton and Mr Donald Trump are not in favour of ratifying the agreement, arguing that it will kill American jobs and does not guard against currency manipulation, among others. They have been calls to subject the TPP to renegotiation.

President Barack Obama has consistently stated his support for the ratification of the TPP. He has also said that he is “optimistic” that the US Congress will ultimately support the agreement.

Speaking during the same event at the chamber of commerce, Secretary of Commerce Penny Pritzker said: “President Obama and his entire administration remains committed to securing bipartisan congressional approval of this critical trade agreement.”

Responding to a comment during the question and answer segment on how some have said that China will win if the TPP crumbles, Mr Lee pointed out that the US’ bilateral relationship with China is not a zero-sum game, with both sides competing but also cooperating.

“If China gains, you (the US) gain too… Your exports to China have grown very rapidly. It has been a plus for many American industries, all the way from Boeing to cars, to pharmaceuticals, to insurance and services.”

“The TPP gives America a headstart because you are in on a major trade agreement which includes a big part of the Asia Pacific… Actually what you are looking for in the longer term is where you have free trade in the whole Asia Pacific.”

Touching on Singapore-US economic ties, PM Lee said that Singaporean and American companies have taken advantage of the 2004 US-Singapore Free Trade Agreement to develop the bilateral relationship.

“As Singapore continues to our next phase of development, we still welcome the US companies to come and to invest in Singapore,” he said, adding that one of the priority areas for Singapore’s economic transformation going forward is to develop the Republic into a Smart Nation.

“America is one of the leaders in this new economy based on innovation, collaboration, and critical thinking and Singapore is seeking to attract a new wave of American investment.”

Mr Lee said that Singapore is introducing coding in secondary schools and helping to nurture startups in areas such as fintech, social media and e-commerce.

“We welcome American companies to continue helping us with our transformation, and to take advantage of the many opportunities and the talent in Singapore,” he said.

In 2014, US foreign direct investment to Singapore was valued S$152.7 billion, making Singapore the largest investment host of the US in Asia. Similarly in that year, Singapore was the single largest Asean investor in the US, with direct investment abroad to the America valued at S$12.2 billion.

At the sidelines of the reception, a memorandum of understanding was signed between both countries to foster greater collaboration and promote technology partnerships between American and Singaporean companies in third-party markets.

Earlier in the day, Mr Lee visited the Arlington National Cemetery for a wreath laying ceremony at the Tomb of the Unknown Soldier, following which, he met with US Secretary of Defense Ashton Carter at the Pentagon. 

Mr Lee was received at a welcome ceremony  at  the Pentagon by Mr Carter, who hosted Mr Lee to lunch. During the meeting, Mr Lee and Mr Carter re-affirmed the strong and long-standing defence cooperation between the two countries and discussed ways to further strengthen defence relations. According to a media statement from Singapore's Ministry of Foreign Affairs (MFA), Mr Lee and Mr Carter also exchanged views on key regional and global developments, including the fight against terrorism. Mr Carter had also expressed appreciation for Singapore’s steadfast support for the US’ engagement of Asia and contributions towards the Counter-ISIL Coalition.  

Other US officials Mr Lee have met with on this official include US Secretary of the Treasury Jacob Lew. Besides discussing regional and global economic developments, Mr Lew and Mr Lee discussed ways to enhance the strong economic ties between Singapore and the United States through closer cooperatioin on bilateral tax issues. 

The highlight of PM Lee’s visit will be a state dinner early Wednesday (Singapore time). He will be the first South-east Asian leader to be given a state dinner by Mr Obama during his eight years in the White House.