Singapore defends free-trade pacts from criticism

Singapore defends free-trade pacts from criticism

SINGAPORE (AFX-ASIA): Prime Minister Goh Chok Tong defended the country's move to forge free trade agreements outside the Association of Southeast Asian Nations (ASEAN).

Goh said he is aware of criticism by an unnamed Malaysian minister that Singapore's launching of bilateral free trade arrangements (FTA) could divide ASEAN.

He also noted that another Malaysian official, Trade Minister Rafidah Aziz, has said that Singapore's FTAs are consistent with the World Trade Organization.

Malaysia itself is reportedly considering a similar accord with Japan, the prime minister said.

"So I do not know which view prevails in Malaysia," Goh told a news conference.

"But speaking for Singapore, we have bigger reasons than just thinking of ourselves."

Singapore has signed an FTA with New Zealand. Negotiations are due to start with Japan, Australia and the U.S. and a study has been proposed for similar accords with Mexico and Canada.

"Very importantly, these countries are signaling their interest in ASEAN, " Goh said.

"ASEAN at the moment is not quite ready to do an FTA with other countries but Singapore is. So I told the leaders in other countries that ASEAN requires some attention."

Goh said that Singapore's FTAs did not contravene a multilateral global trading system under the WTO.

"The FTA for Singapore will be WTO consistent. (It) will be open to anybody who wants to sign on the terms which we have negotiated with the others.

"It is not a closed FTA. Its is meant to be an arrangement which supports negotiations for freer trade in the fast track so that the others can just follow later on."

Malaysia

However, Malaysia rejected Singapore's claims it is planning a bilateral free trade pact.

Both Malaysian Prime Minister Mahathir Mohamad and Trade Minister Rafidah Aziz immediately issued a denial.

When Rafidah asked who has made the claim, and was told Goh, she said: "He must be out of is mind," adding: "I'm the minister. Take my word. (There is) no such thing."

But she later told reporters in a telephone interview that the barb is not aimed at the Singaporean leader.

"I never said anything that Goh is out of his mind, or even Singapore."

When Mahathir was questioned about a deal with Japan he said: "I'm not aware of it."

Mahathir said Saturday that ASEAN has to study in detail the impact of FTAs on the region's economies.

"We have to examine in detail to know how it will affect ASEAN countries. If it means goods coming in to Singapore can go to ASEAN after AFTA then it is no go.

"If it does not affect us then we are willing to go along with it."