S'pore, Japan conclude joint study on free trade

S'pore, Japan conclude joint study on free trade

SINGAPORE (AFP): A free trade agreement between Singapore and Japan has moved a step closer to realization with the completion of a joint study on the proposed pact, officials said Friday.

The joint study group has submitted its recommendations to the prime ministers of both countries for the so-called Japan- Singapore Economic Agreement for a New Age Partnership, Singapore officials said.

"For this particular agreement what we have done is actually gone beyond just trade investment and liberalization and facilitation to also include cooperation elements in the new high growth sectors of the future," said Pang Kin Keong, a Singapore Ministry of Trade and Industry consultant who co-chaired the joint-study group.

The proposed agreement will give Singapore "a bridge into Northeast Asia" and "enhance Japan's economic presence in the region," he said.

"Beyond that, we believe and hope such an (agreement) will actually help to catalyze further regional trade liberalization and encourage others in the region to do likewise," said Pang.

The agreement would boost the gross domestic product of the two countries, but Pang did not give projections, saying the figures were not yet quantifiable.

The joint study group in its report called on Singapore Prime Minister Goh Chok Tong and Japanese Prime Minister Yoshiro Mori to begin formal negotiations in January next year.

"Within the year of 2001, we hope to have the whole negotiations wrapped up," he said.

Lowering barriers could "result in more Singaporean businesses opening operations in Japan, possibly offering better services and products than domestic companies to Japanese consumers," said a senior Japanese foreign ministry official who did not want to be named.

"At the very least, it would give consumers more choice."

One issue being considered by Japan and Singapore is unified rules on product certification.

"That could mean lower trade costs, which may translate into cheaper imported goods on the shelves of shops in both countries," the official said.

In its report, the joint-study group said the proposed agreement "should also focus on the liberalization of trade in services, investment and movement of people, between both countries" besides the lowering of unnecessary of non-tariff barriers.

"It should put in place a predictable and business friendly framework of rules in all these areas to enhance bilateral economic activity."

In the high growth technology sector, the group recommended the creation of a "legal and regulatory certainty for electronic transactions including enforcing the privacy of consumers and the protection of their personal data."

The two governments can also exchange information on their regulatory frameworks, the study group said.

An electronic customs clearance system should be set up between importers and exporters in the two countries.

This will lead to faster processing of trade documentation, it said.

Both countries should also undertake joint-efforts to identify and invest in promising technology start-ups in the region, the group said.

The two countries can also co-operate in media and broadcasting, tourism, human resource management and trade promotions, the study said.

Japan was Singapore's third largest trading partner in 1999, while the island state ranks as Japan's ninth largest. Cumulative Japanese investments in the city-state exceeds S$20 billion (US$11.6 billion).

Singapore recently concluded a free trade agreement with New Zealand and is pursuing a similar pacts with Mexico and Canada.