SINGAPORE: The Workers’ Party (WP) on Tuesday (Apr 8) expressed its disappointment with the imposition of US tariffs on Singapore and called for all options to be considered in response.
In a statement posted on its Facebook page, the WP said Singapore should immediately start bilateral negotiations and that “no response should be ruled out, given the unprecedented nature of the act”.
The tariffs, announced by US President Donald Trump on Apr 2, impose a universal 10 per cent tariff on all imports into the country, with higher rates for countries deemed to have treated the US “unfairly”.
Singapore, which currently imposes zero tariffs on US imports, is subject to the baseline 10 per cent rate.
In its statement, the WP said the latest act has “undeniably upended the global trade compact” that was first established at the end of World War II.
As a small, open economy dependent on international links, Singapore’s economy will be affected, especially outward facing sectors such as trade, finance and tourism.
WP believes a “rational and pragmatic approach is required” at both the international and domestic level.
“Singapore must reserve its right to turn to relevant dispute settlement mechanisms, such as those outlined in the US-Singapore Free Trade Agreement or the World Trade Organization.
“We should also tap on our existing ties with other branches of the US government and business associations, such as the Congressional Singapore Caucus and the American Chamber of Commerce, to argue our case,” the party said.
The Singapore-US free trade agreement came into force on Jan 1, 2004.
ASEAN NEGOTIATIONS
The Association of Southeast Asian Nations’ (ASEAN) combined economy – the fifth-largest in the world – should be used when negotiating collectively with the US “to increase our relevance and leverage”.
“While this will undoubtedly require additional effort and resources, Singapore – with its history of trade openness – can advance the bloc’s strategic economic interactions with the Trump administration,” said the statement.
Singapore must also further strengthen trade relationships, both within ASEAN as well as larger trade blocs such as the Regional Comprehensive Economic Partnership (RCEP) or Comprehensive and Progressive Trans-Pacific Partnership (CPTPP).
“This will provide the necessary ballast to forgone trade with the US, while also signalling our continued commitment to an open global trading regime.”
The party also said that the tariffs on Singapore could present it with a “near-term cost advantage”, given that regional competitors have been hit by higher tariffs.
This is especially so for Singapore firms exporting semiconductors, telecoms equipment and electronics to the US.
“Our economic agencies should step up efforts to help Singapore firms seize these opportunities as they arise,” said WP.
