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."