India and Singapore agree to explore free-trade deal

India and Singapore agree to explore free-trade deal

Associated Press, Singapore

Indian Prime Minister Atal Bihari Vajpayee and his Singaporean counterpart discussed strengthening economic ties and agreed to study the possibility of a free-trade deal, officials said Monday.

Vajpayee met Singapore's Prime Minister Goh Chok Tong on the second of a three-day official visit to the Southeast Asian city- state.

Singaporean Trade and Industry Minister George Yeo said later that the two nations agreed to set up a study group to explore closer economic ties and "look into the benefits" of a free-trade agreement. The group is expected to complete its work within a year, Yeo said

After their meeting at Singapore's presidential palace, Vajpayee and Goh watched the signing of two accords covering cooperation in the areas of telecommunications and culture.

More than 30 Indian executives are traveling with the Indian prime minister and several business deals are expected to be signed at an India-Singapore Business Forum meeting later Monday, when Vajpayee and Goh will give speeches.

Trade between India and Singapore totaled US$6.9 billion last year, with a surplus of $2.9 billion in Singapore's favor, according to the Confederation of Indian Industry.

Vajpayee will be in Singapore until Tuesday, when he plans to go to Cambodia for an official visit to strengthen Indian ties with that country.

His visit comes seven months before the first summit between India and the Association of Southeast Asian Nations, or ASEAN. Singapore and Cambodia are members of the 10-country association.