S'pore, U.S. trade pact baton likely to pass to Bush

S'pore, U.S. trade pact baton likely to pass to Bush

SINGAPORE (Reuters): Singapore said on Thursday negotiations on its bilateral free trade pact with the United States, which could pave the way for one with ASEAN, were unlikely to be finalized before the inauguration of George W. Bush as U.S. president on Jan. 20.

"Both sides want to conclude this as soon as we can, but we cannot be specific on the dates," Singapore's ambassador-at-large Tommy Koh told a news conference.

The Singapore delegation had achieved about 25 percent of its goals in December and would like to have concluded negotiations by Jan. 19, ahead of the new U.S. administration, he said.

"This is probably not achievable unless a miracle takes place," Koh said, adding both side would act with "all deliberate speed, but would ensure that content would not suffer." Both sides had wanted to finalize a deal last year, to meet a goal announced in November by President Bill Clinton and Singapore Prime Minister Goh Chok Tong.

Koh said he expected that 95 percent of the issues discussed would remain unchanged under the new U.S. administration.

But on issues that had proven divisive, such as labor and environment, there was likely to be a change in negotiation posture and policy. Koh said its free trade agreement (FTA) with the United States would act as a model for similar pacts in future.

"In the longer term, the U.S.-Singapore FTA could open the way for an eventual U.S.-ASEAN FTA," he said, referring to the 10- member Association of South East Asian Nations.

The second round of discussions between the two countries began in the city state on Wednesday and would resume next week.

With a population of four million, Singapore is the United States' largest trading partner in Southeast Asia and 10th largest in the world. Two-way trade totaled US$34.4 billion in 1999.