S'pore, U.S. free trade negotiations starts

S'pore, U.S. free trade negotiations starts

SINGAPORE (AP): The U.S. and Singapore kick off negotiations Monday for a free trade pact and both sides will have to talk fast and furiously as they hope to seal a deal before the new year.

Singapore and U.S. companies largely support a free trade agreement, but some U.S. businesses have expressed concern about the quick deadline and have warned President Bill Clinton against tacking environmental and labor issues onto an agreement.

The American Chamber of Commerce in Singapore, the largest group representing American business interests in the city-state, supports the agreement and hopes it will happen quickly.

"There won't be any hidden problems," said Jenny Conley, a spokeswoman from the chamber in Singapore. "We'll know more at the end of this week, but as far as the chamber's concerned, there really aren't any sticky points."

But not all businesses are so optimistic.

The Wall Street Journal reported Monday that 16 U.S. business associations had written to Clinton urging him not to rush into an agreement and that tacking environmental and labor issues onto an agreement would be "highly controversial".

Singapore has joined other Asian countries in opposing linking labor and environmental standards to trade deals, and many people were surprised that the city-state was considering including them in a pact with the U.S.

Singapore has a highly-developed economy with standards comparable with the West, and developing countries in Asia are likely to be irritated if Singapore changes its stance on linking the issues with trade.

Singapore officials declined to comment Monday but said in a statement they were fully committed to a free trade agreement and that a delegation was in Washington preparing for the talks.

Singapore is the largest U.S. trading partner within the Association of Southeast Asian Nations and is the destination of choice within the 10-country grouping for U.S. direct investment.

Two-way trade between the U.S. and Singapore reached $34 billion last year, double the figure of the early 1990s.

According to the U.S.-ASEAN Business council, Singapore is the tenth largest U.S. export market worldwide. With a population of 3.2 million, the tiny city-state takes in more U.S. exports than China, four times more than India, and more than many European markets, including Italy, Switzerland, and Spain.