S'pore Combating Trade-Hostile World by Lowering Barriers

Republic's Strategy Will Be Carried Out via Asean, RCEP, Says DPM Gan

- Krist Boo

While the US is raising tariffs and potentially igniting a global trade war, Singapore is working to lower duties and trade barriers.

Singapore's strategy to navigate through this increasingly trade-hostile world will be carried out via its membership of two key bodies — Asean and the Regional Comprehensive Economic Partnership (RCEP), noted Deputy Prime Minister and Trade and Industry Minister Gan Kim Yong.

DPM Gan told CNBC's inaugural Converge Live conference at Jewel Changi Airport on March 12 that six out of 10 South-east Asian countries — including Singapore — have no import duties on almost all of their taxable products as part of the Asean Trade in Goods Agreement (Atiga). The remaining four members impose no more than 5 per cent on about 99 per cent of such goods.

"But we want to do even better," said DPM Gan. "We are in the process of upgrading the Atiga to reduce non-tariff barriers, incorporate sustainable trade practices, and address new aspects of trade such as supply chain connectivity."

The move will boost intra-Asean trade flows, and build stronger supply chains against external shocks and protectionist policies, he noted, adding that Singapore will also focus on the digital and green economies, with initiatives such as investing in low-carbon energy.