WASHINGTON, DC — The landmark Trans-Pacific Partnership (TPP) is an “economic game changer” for the United States and vital in anchoring its engagement of the Asia-Pacific region, said Singapore Prime Minister Lee Hsien Loong, as he reiterated the importance of the US ratifying the 12-nation trade pact soon.

“For American friends and partners, ratifying the TPP is a litmus test of your credibility and seriousness of purpose,” Mr Lee told an audience of almost 200 business and industry leaders during a reception.

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

Mr Lee noted that, politically, this has been a tough election year for the US because Americans are wary of the country’s active global engagement. Economic uncertainty has also 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. Economic development across the world will be stymied. With less interdependence, the bulwark against conflict and war is weakened,” he said at the event hosted by the US Chamber of Commerce and US-Association of South-east Asian Nations Business Council on Monday evening (yesterday morning, Singapore time).

He said if the US wants to secure interests for the future, it must ratify the TPP or lose this unique opportunity. Mr Lee added 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.

“Your ratification of the TPP will therefore be a bold statement of your commitment to and confidence to our region.”

Mr Lee also outlined how the TPP will benefit American businesses and citizens: Improved market access will mean cheaper products for consumers and more exports for manufacturers.

“It has unprecedented provisions on human rights, intellectual property protections and safeguards for labour and the environment. Strong standards will support innovation and benefit many US technology giants,” he added.

The TPP, whose countries account for around 40 per cent of the world’s total economic output and was signed in February, is yet to be ratified by the US and other countries including Japan.

The TPP’s future has been plunged into doubt as the two leading US presidential candidates, Ms Hillary Clinton and Mr Donald Trump, are not in favour of ratifying the agreement. They argue that it would kill American jobs and does not guard against currency manipulation, among other things. There 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 as Mr Lee, US Secretary of Commerce Penny Pritzker said: “President Obama and his entire administration remains committed to securing bipartisan congressional approval of this critical trade agreement.”

In his speech, Mr Lee noted that while there were dark clouds on the regional economic horizon, Asia is still a bright growth spark in the global economy and an important growth region for businesses, including American companies.

“We are also looking to spur economic growth through further economic integration,” he said, citing various regional free-trade agreements that have been signed or are in the pipeline.

“There is tremendous potential and promise in Asia. America has always understood this. After all, your long-standing military presence is the bedrock on which Asia’s peace, stability and prosperity has been built.”

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 head start 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.”