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.