RI eyes gains in U.S.-S'pore free trade
RI eyes gains in U.S.-S'pore free trade
Adianto P. Simamora, The Jakarta Post, Bintan
Indonesian manufacturers can expect to benefit from a planned
free trade pact between the U.S. and Singapore, using the city-
state as a jumping-off point for cheaper access to the U.S.
market.
Visiting U.S. Trade Representative Robert Zoellik said that
the Bintan industrial zone near Singapore may be the first to
benefit from a free trade pact between the U.S. and the city
state.
More than 100 items of information technology products from
Bintan may enter the U.S. market duty free if the deal comes
through, he said.
"For people in Indonesia, the benefit of a U.S. and Singapore
free trade agreement should be greater investment, more jobs and
higher experts," Zoellik told reporters on Friday.
Zoellik was on a two-day visit on the Bintan island to meet
Minister of Industry and Trade Rini Soewandi, and Singapore Trade
Minister George Yeo.
Many Singaporean companies owned plants in Bintan or Batam to
capitalize on cheaper land and labor. Designated for export
markets, products from the two islands often find their way into
the U.S. market.
Singapore, depending on international trade to offset its
minimum natural resources, is trying to coax the U.S., which is
ASEAN's largest export market, into forming a free trade pact.
According to Zoellik, Bintan's integration into the free trade
pact may be followed by other industrial zones such as Batam -
also a base for Singapore manufacturers.
"This integrated sourcing initiative will make it possible for
over 100 IT (information technology) products to be shipped from
Singapore to the U.S. duty free without any extra paperwork,
without any extra fees, and without any extra red tape," he said.
Singapore's trade minister Yeo said that the negotiation for a
free trade agreement with the U.S. was in its final stage.
"This is a win-win arrangement that will benefit all parties
and improve ASEAN's competitiveness as an investment destination
for U.S. companies vis-a-vis China," Yeo said.
China is seen as a growing threat to economies in Southeast
Asian, attracting around US$45 billion in foreign direct
investment last year alone.
Trade minister Rini said that the government saw "great
potential" to further improve Bintan and Batam's international
competitiveness.
Zoellik meets President Megawati Soekarnoputri on Sunday.