S'pore, U.S. pledge to talk on trade pact

S'pore, U.S. pledge to talk on trade pact

WASHINGTON (Reuters): The United States and Singapore said on Wednesday they have made substantial progress on a free trade agreement, but much work remains to be done.

In a joint statement at the end of a second round of negotiations on the proposed pact, the two countries pledged to resume talks "as soon as possible" in Singapore.

The first two rounds of talks have been in the United States, but U.S. officials visited the prosperous Southeast Asian city state this month on a fact-finding mission.

In a separate statement, Singapore chief negotiator Tommy Koh said he was confident the incoming Bush administration "will agree to set an early date" to resume talks.

President Bill Clinton and Singapore Prime Minister Coh Chok Tong launched the negotiations in November, with a goal of reaching an agreement by the end of 2000.

After U.S. business groups objected to the rapid pace, U.S. Trade Representative Charlene Barshefsky insisted negotiations would not be ruled by the clock.

Last week, Koh told reporters the two sides completed about 25 percent of the work the proposed pact during three weeks on negotiations in December.

During the second round of talks, which began Jan. 10, "we have made additional progress," Koh said. "We have succeeded in removing a number of brackets around disputed language."

With a population of only 4 million people, Singapore is the largest U.S. trading partner in southeast Asia and 10th largest in the world. Two-way trade was $34.4 billion in 1999.

Because Singapore's tariffs on most U.S. products are zero and the average U.S. tariff on Singapore products is less than 1 percent, negotiations have centered on other trade areas.

The United States wants Singapore to improve its protection and enforcement of intellectual property rights and is also looking for increased market access in a long list of service sectors, such as telecommunications, environmental engineering, architecture, education and finance.

American textile companies also are worried that a free-trade pact with Singapore could open the door to illegal transshipments from China, India and Indonesia.

Singapore hopes an agreement would help ensure the United States remains engaged in region and attract new investment.