WORLD TRADE WT/TPR/M/14
6August 1996
ORGANIZATION (96-3127)
Trade Policy Review Body
3-4June 1996
TRADE POLICY REVIEW
SINGAPORE
MINUTES OFMEETING
Chairperson: H.E. Ms.Anne Anderson (Ireland)
Page
I. INTRODUCTORY REMARKS BYTHE CHAIRPERSON 2
II. OPENING STATEMENT BYTHE REPRESENTATIVE OFSINGAPORE 3
III. STATEMENT BYTHE FIRST DISCUSSANT 5
IV. STATEMENT BYTHE SECOND DISCUSSANT 6
V. STATEMENTS BYMEMBERS 7
VI. REPLIES BYTHE REPRESENTATIVE OFSINGAPORE
AND ADDITIONAL COMMENTS 11
VII. CONCLUDING REMARKS BYTHE CHAIRPERSON 16WT/TPR/M/14
Page 2
I. INTRODUCTORY REMARKS BYTHE CHAIRPERSON
1. Thesecond Trade Policy Review ofSingapore washeldon3-4June1996. TheChairperson
welcomed thedelegation ofSingapore, headed byMr.Khaw Boon Wan, Permanent Secretary ofthe
Ministry ofTrade andIndustry, andthediscussants, Ambassador Celso Lafer (Brazil) and
Ambassador JohnWeekes (Canada). Asusual, bothdiscussants would speak intheirpersonal capacities
andnotasrepresentatives oftheir countries. Inaccordance withtheestablished procedures, the
discussants hadmade available, inadvance, outlines ofthemain issues theyintended toraise. These
were contained indocument WT/TPR/W/18.
2. TheChairperson recalled thepurpose oftheTrade Policy Reviews andthemain elements of
theprocedures forthismeeting. Thereport bytheGovernment ofSingapore wascontained in
document WT/TPR/G/14 andthatoftheWTO Secretariat indocument WT/TPR/S/14. Copies of
writtenquestionssubmittedbythreedelegations(Australia,CanadaandHongKong)hadbeentransmitted
tothedelegation ofSingapore. Iffullreplies could notbeprovided during themeeting, supplementary
written replies should beprovided later.
3. Recalling thatintergovernmental organizations could attend meetings oftheGeneral Council
through decisions taken onthebasisofadhocarrangements, theChairperson proposed thattheTrade
Policy Review Body invite theEFTA, FAO, IMF, OECD, UNCTAD andtheWorld Bank, which
hadrequested observer status, toitsnextmeeting. Itwassoagreed.WT/TPR/M/14
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II. OPENING STATEMENT BYTHE REPRESENTATIVE OFSINGAPORE
4. Introducing avisual presentation onSingapore 'seconomy andtradepolicies, therepresentative
ofSingapore, announced thatthedocumentation provided forWTO members would portray a
comprehensive anddetailed picture ofSingapore 'stradepolicies andpractices. Singapore 'seconomic
development wasbased ontheprinciples ofstrong adherence toafreemarket system andactive pursuit
ofoutward-oriented economic policies. These basic principles wereconsistently applied ineconomic
policy-making asafreemarket system could notstopatnational borders andanoutward-oriented
economy could notallow inefficiencies liketariff protection topersist. Hefocused thepresentation
onthree areas: performance oftheSingapore economy; Singapore 'skeyachievements under the
multilateral trading system; andSingapore 'sstrategies tomeet future challenges. Ineachareahe
highlighted thechanges since thelastTrade Policy Review in1992.
(a) Performance oftheSingapore economy since 1992
5. Since 1992, theeconomy hadgrown byanaverage of9.7percentperannum andarateof
7.5-8.5 percentwasexpected for1996. Consumer prices rosebyanaverage of2.4percentin1992-95
andwereexpected toriseby1.5-2 percentin1996. TheSingapore dollar hadappreciated inaccordance
withthese economic fundamentals, withexchange ratepolicy directed toachieve lowinflation for
sustainable economic growth. Thiswasduetothefactthatimports hadbeenallowed toenterSingapore
freely. While suchappreciation might leadtoanerosion ofexport competitiveness intheshort run,
Singapore believed thatthere wasnosuchtrade-off inthelong-run.
6. Singapore hadbenefited from theworld boom indemand forelectronic goods andthiswas
metbySingapore-based MNCs withneworexpanded capacity. Ithadalsobenefited fromstrong growth
inSouthEastAsiabybeingaregionalhubfortransport,communicationsandbusinessservices.External
demand wasthelocomotive thatdrove domestic consumption andinvestment activities.
7. In1992, Singapore wastheworld 's16thlargest exporter and14thlargest importer. In1994,
ithadimproved tobeing the12thlargest exporter andimporter. Exports andimports hadgrown at
anaverage rateof17.5percentand14.5percentperannum respectively. Exports ofservices had
grown atanaverage annual rateof12.2percent, while forimports, thecorresponding figure was
11.6percent.
(b) Achievements under themultilateral trading system
8. Afree,open, andstable multilateral trading system wasimportant toSingapore. Singapore
hadexpanded itsscope oftariff bindings ingoods from 0.5percentbefore theUruguay Round to
70percentofalltariff lines. In1992, 96percentofimports entered duty-free; for1996, 99.5per
centofimportswouldenterduty-free.Singaporewascommittedtomaintainitspresentlevelofopenness
oftheservice sectors including business, communication andconstruction services. Therepresentative
ofSingapore announced thattheexpiry ofSingapore Telecoms 'monopoly would bebrought forward
totheyear2000. Aspartofitscommitment tofulfilling obligations under theTRIPS Agreement,
Singapore hadamended thePatents Acttobring itinlinewithTRIPS. Singapore wasalsoseeking
accession tothe1994Agreement onGovernment Procurement; initial offers hadbeentabled in1995
andbilateral negotiations withsignatories were continuing.
(c) Meeting future challenges
9. Singaporewasmindfulofthelimitationsfacingitseconomy.Ithadhardlyanynaturalresources,
andfaced absolute constraints inlandareaandmanpower. Itslargest companies were small by
international standards.The labour force waslesswell-educated compared toother NIEs, withonlyWT/TPR/M/14
Page 4
27percenthaving post-secondary orhigher qualifications. Thetechnology baseofitsindustries still
lacked depth andwaslargely dependent onforeign multinationals. Thechallenge forSingapore lay
inaddressing these limitations toensure thatfirms could compete withthose from thedeveloped
economies. Itwasalsoimportant forSingapore thattherewasunimpeded access forgoods andservices
inallmarkets athome andabroad.
10. Singapore 'skeyeconomic strategies werecontinual upgrading oflabour force; promotion of
newactivities inmanufacturing andservices; restructuring thedomestic economy andpromoting R&D.
Basedontheprincipleofcomparativeadvantagetoimprovecompetitiveness,Singaporeadoptedstrategies
suchasoutward investment, regional co-operation andcontinued commitment tothemultilateral trading
system.
11. Singapore hadbeen promoting mutually beneficial investments intheAsia-Pacific region.
Regionalization arrangements allowed Singapore anditsregional partners tobuildoneachother'sstrong
points andpromoted economic interdependence between Singapore anditsneighbours. Theresulting
goodwill andbetter understanding among countries helped tominimize thelikelihood ofconflicts.
In1996, Singapore wasnowamong thelargest investors inChina, Vietnam, Cambodia, Mayanmar,
Malaysia andIndonesia.
12. Even asSingapore invested intheregion, itactively participated inregional foraand
arrangements thatpromoted freetrade inaWTO consistent way, suchasASEAN andAPEC. The
ASEAN FreeTrade Area(AFTA) would bebrought tofruition bytheyear2003, 5years earlier than
planned. Hewasoptimistic thatAFTA would berealized evenbefore then. Among the18APEC
economies, thegoals offreetrade andinvestment would become areality by2010 forindustrialized
economies and2020 fortherest. Although notyetadeveloped economy, Singapore wascommitted
totheearlier target of2010. Itsplans forfurther liberalization ofitstraderégime called foracceleration,
deepening andbroadening ofexisting tariffcommitments andashortened timeframe forimplementing
theUruguay Round Agreements. Singapore 'ssupport forregional trade initiatives wascompatible
withitscommitment tomultilateral trade liberalisation. Singapore, asabeneficiary offreetrade,
welcomedtheopportunitytobepartofbold,innovativeideasthatcouldultimatelybenefitthemultilateral
trading system.
13. Above all,Singapore recognized thatthemultilateral trading system, asthebed-rock, must
besolid andcommand thesupport oftheglobal community; hence itscommitment totheWTO.
Without aclear multilateral dispute settlement mechanism enshrined intheWTO, theplaying field
would nothavebeenlevelforsmall players. Small countries likeSingapore would nothaveachieved
somuch ifitstradeliberalization hadtaken place inbilateral, quidproquofashion among bigplayers.
Singapore looked forward tohosting andwelcoming allWTO members fortheDecember 1996
Ministerial Conference.
(d) Conclusion
14. Singapore 'srecord ofeconomic management andcompetitiveness hadreceived positive
endorsements fromboththeInternational Institute forManagement Development (IMD) andtheWorld
Economic Forum 'sGlobal Competitiveness Report. Butitcould notbecomplacent inview ofthe
limitations facing itseconomy. Singapore needed torefine itseconomic strategies continuously in
lightofnewchallenges. However thefundamentals ofitseconomic management would notchange.
Singapore would remain anoutward-looking economy, totally committed tofreemarket principles
andthemultilateral trading system.WT/TPR/M/14
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III. STATEMENT BYTHE FIRST DISCUSSANT
15. Thefirstdiscussant (Ambassador Celso Lafer) expressed hispleasure inparticipating inthe
Trade Policy Review ofSingapore andhearing theopening statement. Henoted thattheprimary
objective ofSingapore 'stradepolicy wastomaintain anopentrading system, sothattradecontributed
tosustainable economic development. Singapore 'seconomy hadbenefited fromregional growth, with
particular progress inelectronics, transport andtelecommunications. Thenumbers presented were
impressive.Withapopulationofthreemillion,SingaporeexportedUS$119billionandimportedUS$125
billion. Inservices, itexported US$23 billion andimported US$13 billion. Itwasanimportant member
oftheAsean FreeTrade Area (AFTA) created in1992, andanactive member oftheWTO.
16. Henoted thataproblem common tomany economies, wastherelationship between tradepolicy,
currency movements andtherateofinflation. These issues must beconsidered inrelation tothe
conditions pertaining ineachspecific economy. Inthisconnection, Singapore hadresponded tothe
challenge withhardly anynatural resources, being anisland economy, withemphasis oneducation.
Thiswastheplatform upon which itseconomic performance wasbased.
17. Oneconcern wasthebroad relationship between trade, economic interdependency ofSingapore
anditsneighbours, andakeyelement oftheinternational system, theissue ofpeace; howtowork
through trade toproduce amore stable international situation. ThiswasthegoaloftheWTO.
18. Heobserved thatSingapore 'sexport andimport dataincluded re-exports anddomestic exports
aswellasimports andretained imports. Heasked thedelegation toindicate theconcepts behind those
categories andtopresent datadifferentiating theproducts included inthesecategories andexplain what
measures hadbeentaken toavoid double counting.
19. Thediscussant asked ifSingapore could indicate themain characteristics oftheAsean Free
Trade Area andwhat measures hadbeen taken toensure itscompatibility with WTO rules.
Regionalization wasastrong ingredient ofSingapore 'spolicy. Hewaspersonally convinced thatopen
regionalism wasagood fundamental steptowards abroader system.
20. Hisnextquestion wasrelated toSingapore 'saggressive industrial policy, including thatof
industrial clusters forinvestments instrategic products. Heasked whether Singapore could explain
measures taken toensure compatibility withWTO rulesondomestic andexport subsidies. Singapore
pursued aregionalization policy, aimed atencouraging companies toshiftlabour-intensive operations
from Singapore tooffshore sitesduetorising labour costs andlandshortage. Heasked whether
Singapore could explain theimpact ofsuchpolicies onitstradeactivities andiftheproducts originating
from these investments were included asexports from Singapore.
21. Hethensought information onthemain changes introduced inSingapore 'snewlegislation
related tocustoms valuation andifSingapore hadspecial rules toqualify goods thatbenefited from
itspreferential agreement withother andASEAN members. Next, henoted thatSingapore wasto
introduce newlegislation onanti-dumping andcountervailing measures andsought clarification on
themain points inthisnewlegislation.
22. Thediscussant mentioned theseven freetradezones, where traders mayre-export goods with
minimal customs involvement. Heasked whether Singapore hadensured thattheincentives offered
bythese zones were compatible withtheWTO rules.
23. HenotedthatSingapore'sexportsubsidiesincludedmeasuresadoptedbytheTradeDevelopment
Board,whileothersubsidieswereestablishedbytheSkillsDevelopmentFundandtheResearchIncentive
Scheme forcompanies. Heasked howSingapore sawthecompatibility ofthese subsidies withWTOWT/TPR/M/14
Page 6
rules, whatmeasures Singapore hadtaken toensure fullcompliance withtheTRIPS Agreement and
whether Singapore could indicate themain characteristics ofitspolicy supporting theobjectives of
GATS.
IV. STATEMENT BYTHE SECOND DISCUSSANT
24. Thesecond discussant (Ambassador JohnWeekes) emphasised thattheTRPM wasalearning
experience; notaforum forjudging implementation orraising dispute settlement questions, butrather
oneinwhich experiences could beshared andtotrytolearnfromthepractices ofothers. Inthisregard,
thematerial prepared forthisTrade Policy Review contained awealth ofinformation withmany thought-
provoking elements.
25. Hewasstruck bythenotion oftheconstraints Singapore hadonitstrade policy environment.
There wereanumber ofcountries thathadadvantages thatSingapore didnothave. Thishadforced
agreater reliance bySingapore onitspeople. Despite theseconstraints, Singapore 'stradeandeconomic
experience hadbeensuccessful. Hepraised Singapore 'sgrowth performance overthelasttenyears
andguessed thatbeing blessed byconstraints could actually beahelpindeveloping economic policy.
26. Theinternationalization ofSingapore 'seconomy wasstriking, withfurther increases inthe
share oftrade inbothgoods andservices asapercentage ofGDP. Singapore 'strade wasalsowell
balanced among itspartners; however, theincreasing share ofMalaysia within ASEAN, bothinimports
andexports, wasparticularly noteworthy. Hewasinterested inknowing towhat extent Singapore
considered thatASEAN Agreements hadbeenacontributing factor inthisgrowth intrade andinthe
share oftrade conducted withother ASEAN countries.
27. AnotherstrikingfeaturewasthedynamicnatureoftheSingaporeeconomy.TheReviewshowed
thatadjustment wasaconstant feature ofSingapore 'seconomic andtrade policy, actively promoted
bytheGovernment. Thiswastrueinthetrade andproduction ofservices andinregard tooutward
investment itsuggested thattradepolicy played amajor rôleintheoverall development ofSingapore 's
national economic policies. Hewasinterested ingetting more information onexactly howthatprocess
tookplace.
28. Henoted thatnosingle agency wasresponsible forservices policy, though thiswasalsotrue
formost governments; theMinistry ofTrade andIndustry didnotseem tohaveanydirect rôlein
managing these service areas. Heasked whether thiscreated difficulties interms ofthedevelopment
ofSingapore 'snational trade policy.
29. Thediscussant welcomed theincrease inbindings bySingapore under theUruguay Round and
recognized that99.5percentofimports entered dutyfree. However, henoted that6.4percentof
government revenues came fromcustoms duties. Itseemed rather striking that0.5percentofimports
would generate 6.4percentofgovernment revenues. Thatsuggested some protective effect; however,
hewondered whether, inpromoting freetrade andintegration intheglobal economy, therelatively
highshare ofincome fromcustoms duties might bereplaced byanother formofgovernment revenue.
Hesought Singapore 'scomments onthepolicy rationale forcontinuing tohave30percentoftariff
linesunbound.
30. Singapore hadbeenquestioned about itstradestatistics. Hewasinterested inknowing towhat
extent theimport permit system wascritical tothecollection ofinternational statistics.
31. Hisfinalcomment wasonthechallenges Singapore faced. Onechallenge, according tohim,
would betheneedforSingapore 'scompanies tocompete withthose from developed countries.WT/TPR/M/14
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V. STATEMENTS BYMEMBERS
32. Therepresentative ofAustralia saidthatSingapore hadbeenoneofthestrong supporters of
astable multilateral trading system andanactive member oftheWTO. Henoted thatthere hadbeen
some further positive developments inSingapore 'salready liberal régime intradeingoods since1992,
forinstance, inincreasing itsrateoftariff bindings tosome 70percentasaresult oftheUruguay
Round. Helooked forward totheresponse ofSingapore tospecific written questions concerning
foreigners 'access tofinancial, basic telecommunications, transportation, andprofessional services,
together withquestions inthestandards area.
33. Therepresentative ofCanada noted thatSingapore hadanalready opentrade régime andhad
made goodprogress inintellectual property rights. However, shewasoftheviewthatfurther progress
could bemade regarding TRIPS andforeigners 'access tofinancial services inSingapore. Sheexpressed
Canada 'shopethatSingapore would relaxremaining restrictions inlegal, engineering andarchitectural
services. Sheposed various specific questions regarding excise duties; immigration criteria; theCentral
Provident Fund; criteria forgranting theGreen Label; incentives toencourage countertrade; import
licences; theSISIR Mark andtesting standards; andplans forphasing outexport subsidies.
34. Therepresentative ofHong Kong saidthatHong Kong enjoyed anever-strengthening bilateral
trade andeconomic relations withSingapore. In1995 alone, theirtwo-way trade hadincreased by
almost 25percent toUS$15 billion. Healsoregarded Singapore asamiracle ofeconomic success.
Singapore wasalsooneofthestaunchest supporters andfaithful practitioners offreetrade asevident
intheGATT, theUruguay Round andtheWTO. Henoted thatSingapore hadcontinued tostrengthen
itstrade andeconomic relations withneighbouring Asian economies, withmore than60percent of
itstrade within theregion andmore thanhalfofitsforeign direct investment going totherapidly-
developing economies ofAsia. Astheregion developed, Singapore would needtoprepare itself for
theincreasing opportunities andchallenges ahead. Land andlabour were Singapore 'sprincipal
constraints: hewasinterested inhowthese affected theeconomy andthepolicies inplace tomeetthe
challenges. Hong Kong andSingapore shared aspecial affinity foreachother, born perhaps of
similarities insizeandeconomic philosophy. Hong Kong looked forward totheresponse ofSingapore
tospecific written questions concerning itsanti-dumping legislation; marking, labelling andpackaging
requirements, including theGreen Labelling Scheme; standardization, including PPMs; andthe
relaxation offoreign ownership restrictions onbasic telecommunication supplies.
35. Therepresentative ofSwitzerland, noted that,since itsfirstTPRinearly1992, Singapore had
confirmed itsplace amongst themostsuccessful countries fromthecommercial point ofview. Ithad
alsoproved tobeafaithful member ofthemultilateral trading system. Singapore 'strade regime and
economic policy wasopen, non-discriminatory, liberal andfullymarket-oriented. However, henoted
thatonly70percentoftariffs were bound andhoped thatSingapore 'sfuture attitude towards tariff
bindings would becompletely inlinewiththatofaglobally integrated economy.
36. OnTRIPS, Switzerland hadconcerns about Singapore 'sdeveloping country status claims for
thefullimplementation oftheTRIPS agreement. Inhisview, Singapore 'snewPatent Lawrepresented
astepbackfromIPRstandards previously maintained bySingapore. Thatbeing said,heappreciated
Singapore 'spledge atOsaka toashortened time-frame forimplementation oftheTRIPS agreement.
Hethenasked forclarification withregard totheWTO Customs Valuation Agreement, forwhich
Singapore planned afiveyearimplementation period, which wastheentitlement onlyofdeveloping
country members. Switzerland wasconfident thatSingapore would endeavour tomaintain anopen
andfairtraderegime notonlyintheareaofgoods, butalsoinintellectual property andservices under
theWTO.WT/TPR/M/14
Page 8
37. Therepresentative ofJapan saidthatSingapore hadmade constant efforts towards liberalization
intheWTO framework. Henoted therobust bilateral traderelationship between Japan andSingapore.
Japan looked forward totheresponse ofSingapore tospecific written questions concerning theASEAN
Preference Trading Agreement ongovernment procurement; future plans forfurther liberalization
offinancial andbasic telecommunication services; progress oftheASEAN Agreement onIntellectual
Property Co-operation; andmethods ofimplementing theTRIPS Agreement.
38. Therepresentative oftheCzech Republic pointed outthatSingapore wasoneofthemost
competitive countries intheworld byanymeasure. Henoted thatSingaporean exports stillbenefited
fromtheGSPscheme oftheCzech Republic. Regarding Singapore 'sefforts todiversify trade flows
andoutward investment, heasked about Singapore 'sintentions regarding investment in,andfurther
cooperation with, thetransition economies. Heconsidered itsymbolic thatthefirstMinisterial
Conference would takeplace inSingapore.
39. Therepresentative ofthePhilippines, speaking onbehalf ofother ASEAN members, noted
thatSingapore hadattained itswell-earned reputation asadynamic economy through enlightened and
coherent policy making involving close interaction between theGovernment andtheprivate sector.
Singapore 'strade andinvestment régime wasveryopen, with98percentoftariff linesduty-free.
Singapore hadimproved thescope ofitstariffbindings tonearly 70percentofalltarifflinesandwould
alsocomply withtherequirements oftheTRIPS andCustoms Valuations Agreement intheWTO.
Giventheopennesswithwhicheconomicgrowthanddevelopmenthadbeenpursued,Singaporerequired
asimilarly openworld trading system governed byfairmultilateral rules liketheWTO. Singapore
wasseenbythePhilippines asamodel ofwhat aneconomy could, orshould be.Shewelcomed
Singapore 'srôleinfostering ASEAN economic cooperation, inparticular, thelong-term pursuit of
theASEAN FreeTrade Area.
40. Therepresentative ofIndia saidthatSingapore 'srapid economic growth waslargely dueto
itsopentrade régime, prudent macroeconomic policy, location inthecentre ofadynamic region and
itshighsavings rate. Henoted thatSingapore hadafairly liberal régime inservices suchasbanking,
insurance andtelecommunications. Healsowelcomed thesubstantial interest from Singaporean
entrepreneurs inIndia. However, heasked Singapore toadopt amoreliberal approach regarding foreign
ownership ofpartnership inengineering andlegalservices firms.
41. Therepresentative oftheEuropean Union alsoremarked onSingapore 'sspectacular economic
growth andsocial development, despite itslackofnatural resources andthelimitations ofitsdomestic
market. Oneofthekeyelements inthisdevelopment hadbeentherôleofforeign direct investment
andSingapore 'spositive andopenpolicies inthisarea. Hewelcomed Singapore 'sstrong contributions
tostrengthening themultilateral trading system, notably theactive roleplayed bySingapore inthe
conclusion oftheUruguay Round anditsparticipation inthenegotiations onfinancial services,
telecommunicationsandmaritimetransport.HealsocongratulatedSingaporeonitsopentradingrégime,
withlargely duty-free imports andgeneral absence ofimport licensing.
42. While noting thatSingapore hadmade considerable progress intariff bindings, hehoped that
further efforts could bemade. More generally, henoted Singapore 'sadvanced commitments under
APEC andsuggested thatsimilar advances intheWTO context would more trulyreflect Singapore 's
levelofdevelopment. Inconclusion, hepaidtribute toSingapore 'sopentrading andeconomic policies,
andsaidthatitwould bedifficult tofindabetter place toholdthefirstWTO Ministerial Conference.
43. Therepresentative ofNorway reflected ontheimpressive economic achievement ofSingapore,
whose political andeconomic stability, excellent infrastructure, andhard-working population were
tobeadmired byall.120Norwegian companies wereinSingapore andNorwegian vessels werethe
fourth largest users ofSingapore harbour. Hesuggested that,given Singapore 'slevelofeconomicWT/TPR/M/14
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success, itshould consider giving upitsdeveloping-country status. Healsoquestioned theprohibition
ofchewing gumforreasons ofpublic safety.
44. Therepresentative ofPerulooked forward totheresponse ofSingapore toquestions regarding
themainmeasures enabling Singapore tomaintain highsavings rates; maintaxandnon-tax incentives
granted toattract investment; incentives forre-exports inFreeTrade Zones; andtherôleofthe
authorities regarding anti-competitive orrestrictive practices intheabsence oflegislation oncompetition
policy.
45. Therepresentative ofPakistan saidthatSingapore 'srapid economic growth wasduetosuperb
economic management, ahighly ableprivate sector, anopentraderégime, andthevitalrôleofinward
foreigninvestment.Henoted,however,thatSingapore'stradeconcentratedonarelativelysmallnumber
ofmarkets andhoped thepattern would become more evenly distributed inthefuture. Healsohoped
thatSingapore would fillthegapbetween arelatively small pooloflabour forceandhighqualifications.
46. Therepresentative ofNewZealand saidthathiscountry 'strade relationship withSingapore
washealthy, promoted bythegrowth ofbothcountries, although in1995, NewZealand imported one
andahalftimes whatitexported toSingapore. Hewasencouraged bytheconcept ofjoint-venture
cooperation withsmall countries likeNewZealand, soastobenefit fromopportunities thatotherwise
might bebeyond theirmeans individually. Henoted thatSingapore wasamember oftheASEAN
FreeTrade Area, which planned toreduce alltariffs onintra-ASEAN trade to0-5percent bytheyear
2003. NewZealand encouraged ASEAN members, including Singapore, toensure thatAFTA remained
outwardly focused andcontinued tocontribute tothetrend towards trade liberalisation intheregion.
TherepresentativeofNewZealandalsoraisedthequestionofSingapore'sstatusasadevelopingcountry.
Heasked thatSingapore notseektotakeadvantage ofspecial anddifferential provisions fordeveloping
countries inWTO instruments, asitwasunclear ifpressing andviable reasons existtodoso.Lastly,
hequestioned thehighexcise dutyonwine.
47. Therepresentative ofBrazil invited theAFTA countries tohelptheirobjectives andpolicies
examined bytheCommittee ontheRegional Agreements. Hethennoted thelimited extent offoreign
ownership inthefinancial sector. Hehoped Singapore would expand itstrade andinvestment into
Latin America.
48. Therepresentative ofHungary recalled Singapore 'srecord ofrapid economic growth, growing
employment andprice stability. RealGDP growth perannum hadreached 10percentinthelastten
years, unemployment hadremained below 3percentsince the1980's,andinflation rateshadbeen
around 2to3percentoverrecent years. Onemajor contributing factor tothishadbeenSingapore 's
openness totrade andforeign direct investment. Asasmall nation relying oninternational trade,
Singapore played aleading roleduring theUruguay Round negotiations inliberalizing global trade
andstrengthening multilateral trading rules. Itwasnotable that,withfewexemptions liketobacco
products andliquor, nocustoms duties arelevied onimports ofagricultural products andnoquantitative
import restrictions areapplied. Therepresentative ofHungary asked howimport licensing feeswere
applied, andhowtheycorresponded totheapproximate costofservices.
49. Therepresentative oftheUnited States saidthatSingapore 'ssuccess should beascribed toopen
trade andinvestment policy. However, heasked Singapore toreexamine itsinsistence ondeveloping
country status anditsconsequent decision nottofullyimplement theTRIPS andtheCustoms Valuation
Agreement atthetimeofentry intotheWTO. TheUnited States looked forward totheresponse of
Singapore tospecific written questions concerning: itsstandards andtechnical requirements andhoped
itsexplanation oftheannouncement ofending Singapore Telecom 'smonopoly inthebasic
telecommunication services inApril 2000. Healsoasked about Singapore 'scompliance withtheWTO
notification obligations.WT/TPR/M/14
Page 10
50. Therepresentative oftheSlovak Republic characterized Singapore asonewithhighly efficient
government, sound financial structure andgoodmanagement. Heexpressed hisinterest intherationale
behind Singapore 'srestrictions onfinancial services.
51. Therepresentative ofColombia expressed hisinterest intherôleoftheInternational Panel
ofAdvisors inSingapore.WT/TPR/M/14
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VI. REPLIESBYTHEREPRESENTATIVEOFSINGAPOREANDADDITIONALCOMME NTS
52. Therepresentative ofSingapore divided hisreplies intoageneral profiles areaandthefollowing
three broad topic areas: opentrade policy anditscontribution todevelopment, roleinmultilateral
andregional trade, andspecific questions.
(a)General profile
53. Therepresentative ofSingapore wasgrateful forthecomments onthefreetrade regime of
Singapore andhowithadenabled Singapore tomake itseconomic transformation during thelast30
years. Thequestion theyasked tothemselves waswhether thenext30years would beahappy
extrapolation ofthelast.
54. HesaidthatSingapore 'seconomy hadasupply sidepotential togrow atabout 7percent in
themedium term. Thisdepended onstaying competitive andmaking surethatSingapore 'sproducts
andservices were indemand. TheGovernment played acritical roleresponding vigorously and
creatively tothechanging environment. Itanticipated trends andgeared upthecountry either tobenefit
fromtheemerging opportunities ortotakeprecautions against adverse developments. TheGovernment
hadnever hesitated initsresponsibility inplanning forthemanpower needs ofthecountry, investing
ininfrastructure requirements, andtaking stakes inlarge projects tospread risk. Singapore believed
thatthegovernment mustcooperate closely withtheprivate sector topromote economic development
andmake judgements onthemostpromising areastopushfor.Ithadidentified several industry sectors
thatitbelieved would contribute toSingapore 'seconomic development. Thecritical roleofthe
Government ineconomic development wasexplicitly acknowledged bytheWorld Economic Forum
(WEF) andtheInternational Institute forManagement Development (IMD).
55. Henoted thatMencius, renowned student ofConfucius, saidthat"theartofgovernance is
likefrying asmall fish:toomuch ortoolittlespoils thedish". TheSingapore economy wasthatsmall
fish,andtheyhadbeentrying toachieve thisfineever-changing balance inthelast30years.
(b) Open trade policy anditscontribution todevelopment
56. Singaporeimportedalmostallofitsconsumptiongoodsaswellasrawmaterialsandintermediate
products formanufacturing. Asaresult, prices ofimports hadimpacted ondomestic inflation. Their
monetary policy therefore hadfocused ontheexchange rate,withtheobjective oflowinflation for
sustainable economic growth. Theemphasis ofmonetary policy wasonthelongterm. Hence, the
Singapore dollar hadappreciated since1986, reflecting theirstrong economic fundamentals. Artificially
suppressing theSingapore dollar would hurttheeconomy inthelong-term withhigher wages andother
costs. Theultimate consequence ofaweaker exchange ratewashigher prices, nothigher exports.
Singapore 'slowinflation andstrong currency were duetothose offinancial prudence within the
Singapore Government andtheefforts oftheMonetary Authority ofSingapore.
57. Hethanked thevarious delegates thatsuggested Singapore diversify trade andinvestment to
Latin America andtransition economies. They hadstarted theprocess andhadencouraged theprivate
sector toinvest inandtrade withthese countries.
58. Singapore hadnotified theCommittee onSubsidies thefollowing export subsidies under Article
27oftheSubsidies Agreement: theInternational Trade Incentive, which hadnotbeeninoperation
since 1986, thedouble taxdeduction which wasstillbeing granted bytheTDB, andProduction for
Export Incentive which theEDB granted onlyforactive cases butnotnewonesasEDB nolonger
accepts newapplicants. Thegovernment wasphasing outthese export subsidies duetoobligations.WT/TPR/M/14
Page 12
Asforinvestment incentives, these were generally available toallsectors, nottargeted atexports.
Singapore didnothaveanyfiscal incentives intheirfreetrade zones.
59. TheInternational Advisory Council meets annually inSingapore toadvise theEDB onits
economic strategies. Itwasaforum forwhich theGovernment consulted withtheprivate sector to
draw feedback andfine-tune itspolicies.
60. Thesecond discussant thenthanked therepresentative fortheintroductory comments provided
ontheroleofthegovernment andhowtradepolicy foreachcountry isdifferent. Itwasveryinstructive
toseethemanner inwhich theSingapore Government hadacted, results were clear witheconomic
andtrade performance. Henoted theemphasis onskills training andinfrastructure. Many other
governments would liketohavehadthefiscal andmonetary policy instincts ofSingapore.
61. Thefirstdiscussant shared hisinterest ofexplanation andspecificity ontheroleofgovernment
inSingapore. Answer toexchange ratepolicy wasclear duetofiscal surpluses. Interesting aspect
ofwhatisdoneatTPRB wasnotonlytoviewwhatwascommon ,butwhatwasspecific toeachcountry.
Howeachcountry responded according toitsspecifics toaglobal market. Thisexercise goesbeyond
justthenumbers, buttothefundamentals thatwere behind it.
(c) Roleinmultilateral andregional trade
62. Therepresentative ofSingapore saidthatSingapore would implement theUruguay Round
Agreements inaccordance withitscommitments. Inrelation tothequestions onTRIPS, Singapore
would fulfilitsobligations under theTRIPS Agreement. Thework intheareaofpatents wascompleted
andtherevised Patents Act,consistent withTRIPS, wasinforceeffective asof1January 1996. Hence,
noissueinrelation tostandstill arises. Changes made toother areas ofintellectual property werebeing
looked atbyataskforce. Heclarified thatthePatents Act1968 hadbeenrepealed andreplaced by
theamendments tothePatents Actmade inSeptember 1995 inlinewithTRIPS. Section 13(1)no
longer exists. Heproposed tocover Article 23(1)oftheTRIPS Agreement intheTrade Marks Act.
AttheASEAN level, thecountries wereworking outanAction Plantoconcretise theobjectives on
Intellectual Property Co-operation.
63. Oncustoms valuation, thechanges tobemade toSingapore 'sCustoms Acttofulfil the
requirements oftheWTO Customs Valuation Agreement wereunder study. Singapore 'sscope oftariff
bindings at70percentofitstarifflineswasanegotiated outcome oftheUruguay Round market access
negotiations. Itrepresented thepackage ofconcessions thatSingapore committed inexchange forthe
offers made byitstrading partners. Singapore remained ready tonegotiate further increases oftariff
bindings infuture multilateral trade negotiations.
64. Singapore 'santi-dumping legislation would besoonsubmitted toParliament. Itwould conform
withWTO Agreements onSubsidies andCountervailing Measures andAnti-Dumping. Themainpoints
would be:general definitions including "domestic industry", "interested parties", "like goods" and
"subsidy"; procedure forfiling ofpetition, investigation andreview; method fordetermination ofinjury,
causation, dumping margin andexistence ofcountervailable subsidy; maximum duration ofduties and
investigation; procedure forundertakings andsuspension ofinvestigation; general provisions regarding
matters suchasconfidential treatment ofdocuments andfactsavailable; andestablishment ofreview
Tribunal.
65. TheMinistry ofTrade andIndustry wasresponsible fortheformulation anddirection of
Singapore'stradepolicyintheservicessector.Singaporeallowedtemporarymovementofintra-corporate
transferees atthelevelofmanagers, executives andspecialists levelforallsectors listed intheschedule
ofcommitments. Entry waslimited toathree-year period thatmaybeextended foruptotwoadditionalWT/TPR/M/14
Page 13
years. Singapore 'sobjective intheregulation ofprofessional services wasaimed atquality ofservices.
Thecriteria foradmission tothedifferent professional services were defined inAnnex 6ofthe
government Report. Entrants needed todemonstrate theirqualifications. Singapore allowed foreign
lawfirms topractice intheRepublic. Alistoffirms canbefound inthepublication "Investors 'Guide
toSingapore, 1996 Edition" bytheSingapore International Chamber ofCommerce.
66. Some comments hadbeenraised regarding therestrictions inSingapore 'sdomestic banking
andinsurance sectors. Singapore hadasmall economy oflessthan3million people. Itsdomestic
banking sector comprised about aquarter ofthetotalbanking market. Despite this,Singapore had
aliberal financial services regime. Foreign banks accounted formore thanhalfofthetotalbanking
business inthedomestic banking sector. Inthedomestic insurance sector, foreign insurers accounted
for51percentofthetotal. Thehighforeign content inthesesectors wasprobably unmatched elsewhere
intheworld. Itspolicies should beviewed against thisbackdrop. Toallow foreign financial institutions
tomonopolise thissector would haverendered thecentral bank'scontrol ofmonetary policy ineffective.
67. TherepresentativeofSingaporethenaddressedSingapore'sdecisionnottograntnewfullbanking
andinsurance licences tobothlocals andforeigners. Henoted thatboththedomestic banking and
insurance sectors werealready saturated andthatforeign banks andinsurance companies dominated
these sectors bothinterms ofmarket share andnumbers accounting formore thanhalfofdomestic
banking andinsurance business. However, thebanking andinsurance sectors remained opentoforeign
banksandinsurancecompaniestoestablishasoffshorebanks,merchantbanksandreinsurancecompanies.
ThiswaspartofSingapore 'sbound commitments intheGATS.
68. Singapore hadoffered toliberalise itsbasic telecommunication sector inyear2002 inthe
Negotiating Group onBasic Telecommunications (NGBT). Singapore hadgonefurther andannounced
thattheexpiry ofthebasic telecommunications monopoly would bebrought forward fromyear2007
to2000. Singapore willcontinue toplayaconstructive roleintelecommunication negotiations and
willconsider adjusting offers depending ontheprogress andoffers inthenegotiations. In1996, the
direct foreign shareholding forbasictelecommunications was49percent,which wasmore liberal than
most countries.
69. TheASEAN countries hadnotified theCommittee onTrade andDevelopment oftheCEPT
Scheme forAFTA under theEnabling Clause. Details wereinWT/COMTD/3. TheAgreement was
consistent withtheWTO. Singapore together withotherASEAN members hadimplemented theCEPT
Scheme forAFTA where thequalifying origin criterion wasaminimum of40percentofASEAN
content. Asforfuture competition, onehastolearn todealwithitinaccordance withchanging
circumstances.
70. Thefirstdiscussantagreedwiththeconcernsthegovernmentrightlyhadwiththeissueoflimiting
more participation infinancial services tothecontrol ofdomestic monetary policy. Hesaidthatin
aglobalized economy, thecontrol eachcountry hadoveritsmonetary policy, which wasacritical
issue inmanaging theeconomy, became more andmore limited. Itwasappropriate todiscuss the
roleofgovernment andthenapplying ittoaspecific issue. Singapore evaluated whatshould bethe
sizeofthebanking system, theroleofforeign capital andlocalcapital inorder toallow foraneffective
management ofmonetary policy, considering thatitwasacritical issuefortheexchange rateandthe
fiscal policy. Onthebasis ofprevious experience, certainly thelessons weretobeappreciated and
applauded.
71. Thesecond discussant offered aslightly different perspective onthefinancial services issue.
Itwasnotcleartohimthatitwasimprudent toallow more foreign involvement inthebanking sector
interms ofitsimpact ondomestic monetary policy. Hewasnotcertain that,inafreemarket economy,
whyonewould expect inherently different behaviour fromaforeign bankascompared withadomesticWT/TPR/M/14
Page 14
bank. These banks would beoperating within adomestic legalandregulatory framework which would
specify certain typesofbehaviour andoperational regulation ofthebanking sector. Soitwasnotentirely
cleartohimthatgreater foreign involvement inthebanking sector would necessarily involve theloss
ofcontrol ofdomestic monetary policy.
72. Thesecond discussant wasmore interested infinding theexplanation behind theresult ofthe
Singapore economy more inthedirection ofpolitical priorities thanabout thesizeandcharacteristics
oftheeconomy.CountriesmustmakepoliticalchoicesandthatSingaporehadbeenextremelysuccessful.
73. Therepresentative ofIndia thanked Singapore forthebriefdetailed reply toitscomment and
would likethedetail ofthepractice oflawyers inwritten form.
(d) Specific questions
74. Foreigners working inSingapore andtheiremployers werenotrequired tocontribute tothe
Central Provident Fund (CPF) butcould dosovoluntarily. Itisacompulsory savings scheme for
Singapore citizens andpermanent residents tohelpthemsavefortheirhousing, health-care andold-age
financial needs.
75. Asregards the6.4percentcustoms andexcise dutyintheSingapore government revenue raised
bythesecond discussant, therepresentative ofSingapore stated thatthehighduties imposed were
deliberately sotodiscourage ownership anduseofcarsandconsumption oftobacco andalcohol. The
question ofanyalternative revenue source hadnotarisen sincetheobjective oftheduties wasnotrevenue
generation.
76. Therepresentative from Singapore addressed comments made onthepossible protectionist
effect ontrade arising fromSingapore 'sImport permit system. Heclarified thiswasnotsoandthat
theimport permit system wasnotanimport licensing measure butasystem forregistration onimports
intoSingapore.
77. Singapore 'simport licensing orimport control measures weremaintained forthepurpose of
discharging itsobligations under international agreements orforpublic health, public safety,
environmental orsecurity reasons. Theimport licence feeswerelevied onthebasisofcostsforservices
rendered. Video tapesandlaserdisksweresubject toimport licensing forpurposes ofprotecting public
morals. Censorship wasexercised tocontrol imports ofvideo tapes andlaserdisks which contain
undesirable contents. Itsimport licensing fortelecommunication equipment wasnotintended torestrict
thequality andvalue ofimports, butwasnecessary toprotect essential security interests. The
uncontrolled importation anduseofsensitive telecommunications equipment could haveundermined
Singapore 'spublic security.
78. Therepresentative ofSingapore saidthattherequirement ofimported mineral andspring water
tobeaccompanied byahealth certificate wasnecessary toprotect human health. Itwould serve as
proof thattesting hadbeenmade forthesafety andquality ofthewater forhuman consumption.
79. Hedrew attention tothefactthaton1April 1996, theSingapore Productivity andStandards
Board (PSB) wasestablished, integrating thefunctions oftheNational Productivity Board (NPB) and
theSingapore Institute ofStandards andIndustrial Research (SISIR). Therefore, allreferences toSISIR
andNPBinthecountry andSecretariat reports should bereadasreferences tothePSB.
80. TheSafety Mark wasamark under theSingapore Consumer Protection (Safety Requirements)
Registration Scheme thatensured goods designated ascontrolled items meet consumer safetyWT/TPR/M/14
Page 15
requirements. Itsobjective wastoreduce theriskofinjury ordeath tothepublic. Allsuchcontrolled
goods tobeplaced intheSingapore market mustberegistered withtheSafety Authority. Registration
wasbased ontestreports from recognised laboratories which attest tothefactthatsuchimported
controlled goods conform toproduct safety standards.
81. TheSISIR Quality Mark wasaregistered mark under thePSBCertification Scheme tooffer
aservice torecognised companies ashaving Quality systems thatconform toPSB'squality management
system requirements. Application forthemark wasvoluntary andproducts ofmanufacturers certified
under thescheme wereattested tohaving metaSingapore, international orreputable overseas national
standard. They would thenbeawarded licences tousetheSingapore Quality Mark.
82. There wasnomandatory requirement forbuyers inSingapore toinsist onISO9000 Certification
forimported construction products orInformation Technology equipment. Heassumed thattheWTO
Secretariat'sstatementhighlightedbytheCanadiandelegationreferstointernationalguidelinesdeveloped
byISO/CASCOforaccreditationoftestingfacilitieswhichwereadoptedbynationalaccreditationbodies.
TherewerenoSingaporeStandardsintheareaofenvironmentalmanagementorenvironmentallabelling.
83. TheGreen Labelling Scheme wasavoluntary scheme. Thecriteria usedwereconsistent with
international standards andguidelines, andapplied tobothdomestic andforeign produced goods.
Singapore accepted theimportation ofproducts with green labels from other countries. Prior
consultations were heldwithinterested parties, including consumer groups, before thecriteria were
established.
84. HesaidthatSingapore didnotmaintain anyTRIMS. TheWTO Secretariat hadbeennotified
ofthis.Competition Lawwasoneoftheemerging issues intheinternational tradeagenda. Singapore,
likeother delegations, would study thisissue. Anynotifications which Singapore wasrequired tomake
would bemade inaccordance withtherespective Agreements.
85. Thefirstdiscussant hadrequested clarification ontheuseofvarious trade terminology by
Singapore. Theywereasfollows: Imports referred toallgoods brought intoSingapore forconsumption,
processing foruseinmanufacturing, orforsubsequent re-shipment toother countries/areas; Exports
referredtoallgoodstakenoutofSingaporewhichcompriseddomesticexportsandre-exports;Re-Exports
referred toallgoods taken outofSingapore inthesame formastheyhadbeenimported without any
transformation, (re-packaging, splitting intolots,sorting orgrading, marking andthelikewere not
considered asundergoing theprocess oftransformation); Domestic Exports referred toexports of
Singapore origin andcomprise, primary commodities grown orproduced inSingapore andgoods which
hadbeentransformed, i.e.manufactured, assembled orprocessed inSingapore including those with
imported materials orparts. There wasnodouble counting ofthestatistics ofSingapore 'sexternal
trade. Products from Singapore 'sinvestments incountries oftheregion, ifexported directly from
thecountry ofmanufacture, would notbeconsidered asexports from Singapore. Products were
considered asexports originating from Singapore iftheyconformed tothedefinitions ofexports as
elaborated earlier.
86. Regarding thequestion about chewing gum, therepresentative ofSingapore answered that
Singapore hadprohibited theimport ofchewing gumtoprevent disruption oftrains, listsinpublic
housing estates andtopromote thegeneral cleanliness ofthecity.
87. Therepresentative ofNorway asked about thelevelofeconomic development andsubsequent
GNP percapita situation ofSingapore andwhether itwould induce adiscussion ofSingapore giving
upitsdeveloping country status. Therepresentative ofSingapore responded thatthismatter could
betaken upbilaterally between thePermanent Representative ofNorway totheWTO andhiscounterpart
from Singapore.WT/TPR/M/14
Page 16
88. Therepresentative ofSingapore thenstated thateightsuccessive Rounds ofGATT negotiations
hadprogressively andsignificantly reduced tariffs andnon-tariff barriers. TheUruguay Round had
gonefurther toextend andstrengthen therulesininternational trade. TheURpackage wasalsounique
asitcontained commitments tofurther liberalise byspecific datesviathebuilt-in agenda. TheSingapore
Ministerial Conference would offeranopportunity toconsolidate thesignificant gains oftheURand
renew commitments togivesubstance tothebuilt-in agenda. Inthisregard, theSingapore Ministerial
Conference could mandate members toinitiate thepreparatory process forimplementing thebuilt-in
agenda.WT/TPR/M/14
Page 17
VII. CONCLUDING REMARKS BYTHE CHAIRPERSON
89. TheTrade Policy Review Body hasnowcompleted thesecond review ofSingapore 'strade
policies andpractices. These remarks, made onmyownresponsibility, summarize themain points
ofthediscussion. They arenotintended tosubstitute forthecollective evaluation andappreciation
ofSingapore 'strade policies andpractices. Details ofthediscussion willbereflected intheminutes
ofthemeeting.
90. Thediscussion developed under threemainthemes: (i)Singapore 'sopentrade policy andits
contribution todevelopment; (ii)Singapore 'srôleinmultilateral andregional trade; and(iii)specific
questions.
(i) Open trade policy anddevelopment
91. Members noted thatSingapore 'seconomic environment since1992wasoneofrapid economic
growth,lowunemploymentandhighcompetitivenessduetoitsopen,liberalandmarket-orientedregime.
Notewastaken ofSingapore 'sstable macro-economic management, withlowinflation andhighsavings
andinvestment rates. Questions were asked regarding therelationship between theappreciation of
theexchange rateandthemaintenance ofSingapore 'scompetitive position intheworld economy.
92. MembersquestionedtherelationshipbetweenSingapore'sfreetradegoalsanditsactiveindustrial
policy, including "industrial clusters" forinvestment instrategic projects. They asked about the
investment incentives andexport subsidies administered bytheEconomic Development Board, inthe
lightofWTOrulesregardingTRIMSandsubsidypractices.Notingtherapiddevelopmentofintra-Asian
trade, some Members encouraged Singapore toseekcloser linkswithother geographic areas, including
Latin American partners andcountries intransition.
93. Inresponse, therepresentative ofSingapore saidthattheGovernment played acritical rôle
inhelping theeconomy realise itspotential byresponding vigorously andcreatively tothechanging
environment. While Singapore fullysubscribed tothefreemarket mechanism, theGovernment had
never hesitated toexercise itsresponsibility especially inareas beyond thescope oftheprivate sector.
TheGovernment worked closely withtheprivate sector topromote economic development, although
finding theright balance hadevolved overtime. Now thattheeconomy wasmore mature, the
Government wasprogressively privatizing anumber ofcompanies.
94. Hesaidthatexchange ratepolicy wasnottargeted atmaintaining thecurrent account ortrade
balance; rather monetary policy wasdesigned tooffset imported inflation. However, Singapore 'slow
inflation andstrong currency were alsoaconsequence offinancial prudence. Statutory boards and
government-linked companies followed astrict discipline ofcommercial viability.
95. Diversification oftrade andinvestment towards Latin America andeconomies intransition
wasnowbeginning withtheestablishment ofinvestment guarantee anddouble taxation agreements
laying thefoundation foreconomic co-operation.
96. Therepresentative gavedetails ofSingapore 'snotifications totheCommittee onSubsidies,
andnoted theGovernment wasprogressively phasing outexport subsidies. Investment incentives were
generally available. Nofiscal incentives applied inthefreetrade zones.
(ii) Singapore 'srôleinmultilateral andregional trade
97. Members commended Singapore 'sparticipation intheUruguay Round. Inviewofitsactive
rôleanditscommitment tothemultilateral trading system, itwasfitting thatthefirstWTO MinisterialWT/TPR/M/14
Page 18
Conference beheldinSingapore. Members noted Singapore 'srôleasamong themost prosperous
ofthedevelopingcountriesandpointedtotheimplicationsofthisaswellastheresponsibilitiesitconfers.
98. While acknowledging thatmostimported items enter dutyfree,many Members asserted that
thescope ofSingapore 'sUruguay Round tariff bindings (some 70percentoftariff lines) could be
further improved. Singapore wasasked toclarify itsintentions regarding adoption oftheWTO Customs
ValuationAgreementandtodescribethemainpointsoflegislationnowbeingelaboratedonanti-dumping
andcountervailing measures. Members alsoasked what measures hadbeen taken toensure the
compliance withtheTRIPs Agreement.
99. Members sought information ontherôles oftheMinistry ofTrade andIndustry andother
agencies inregulating tradeinservices, andquestioned theopenness offinancial andtelecommunication
services, noting restrictions onaccess offoreign banks tothedomestic financial services market and
foreign ownership restrictions onbasic telecommunication services.
100. Noting plans toreduce alltariffs onintra-ASEAN tradeto0-5%bytheyear2003, Members
encouraged ASEAN members, including Singapore, toensure thatAFTA remained outwardly focused
andcontinued thetrend towards trade liberalization intheregion. They noted thatregional trade
liberalization could complement multilateral trade liberalization andasked Singapore toindicate the
aimsandobjectivesofAFTAconcerning"openregionalism".MembersalsoaskedSingaporetoindicate
themain characteristics ofitspreferential rules oforigin. Relating toSingapore 's"regionalization"
policy fortrade andinvestment, Members asked Singapore toindicate theimpact ofsuchpolicy on
itstrade activity.
101. Therepresentative ofSingapore saidthatSingapore would implement theUruguay Round
Agreements inaccordance withitscommitments. Specifically:
- Therevised Patents Law, which wasconsistent withtheTRIPS agreement, entered intoforce
from1January1996,andotherintellectualpropertyareaswereunderreviewtoworkoutTRIPs-
consistent legalisation. AnewTrade Marks ActandASEAN co-operation onintellectual
property would cover other concerns.
- Singapore wasstudying thechanges needed totheCustoms ActtofulfiltheCustoms Valuation
Agreement.
- Singapore wasready tonegotiate further increases intariff bindings infuture multilateral
negotiations.
- Singapore 'snewanti-dumping legislation would9 besubmitted toParliament shortly.
102. Regarding services, therepresentative ofSingapore noted provisions forintra-corporate
transferees andforprofessional services; foreign lawfirms could practice offshore law. Remaining
restrictionsshouldbeaddressedinthefurtherliberalizationenvisagedunderGATS.Infinancialservices,
foreign content wasprobably higher thaninmostcountries; however, formonetary policy reasons,
theSingapore authorities considered itwould beimprudent toallow foreign institutions tomonopolize
thesector. Domestic banking andinsurance werealready saturated; however, Singapore wasopen
toforeign companies tooperate asoffshore banks, merchant banks andreinsurance companies, asbound
under GATS. Ontelecommunications, heunderlined thatSingapore hadbrought forward theexpiry
ofthebasic telecommunications monopoly from2007, asoffered inGATS negotiations, to2000; the
49percentforeign shareholding wasmore liberal thaninmost countries.WT/TPR/M/14
Page 19
103. Onregional trade, therepresentative noted thattheAFTA common external preferential tariff
hadbeennotified totheWTO under theEnabling Clause. 40percentASEAN content wasthebasic
ruleoforigin.
(iii) Specific questions
104. Members noted thecomparatively highshare ofGovernment revenue fromcustoms andexcise
duties, despite thefactthatmostgoods areimported dutyfree. Noting thehighlevelofexcise duties
onalcohol, some Members questioned theireffects ontourism.
105. Members questioned therôleoftheimport permit system andasked fordetails onthecriteria
usedforgranting import licences forcertain products andonimport licensing fees.
106. Members asked whether anystandards hadbeenestablished orwerebeing considered forthe
Green Labelling Scheme, andsought information onnon-product related processes andproduction
methods usedaslabelling criteria. They alsoasked towhatextent foreign producers could beinvolved
insetting marking, labelling andpackaging requirements under theScheme andsought clarification
of"internationally approved testing procedures".
107. Members alsosought clarification onTRIMs applied bySingapore. Inaddition, theyasked
howtheauthorities coped withanti-competitive practices intheabsence ofcompetition laws in
Singapore.
108. Inreply tothespecific questions, therepresentative ofSingapore noted thathighduties on
vehicles, alcohol andtobacco sought todiscourage theiruse: revenue generation wasnottheaim.
Theimport permit system wasforregistration andwasnotaprotective measure. Import licensing
wasimposed under international agreements orforpublic health, safety ormorality, environmental
andsecurity reasons; feeswerelevied onthebasisofcosts ofservices provided. Therepresentative
gavedetails ofstandards, testing andcertification provisions, including thevoluntary green labelling
scheme. Henoted thatnoTRIMs weremaintained inSingapore andstated thatallrequired notifications
totheWTO willbemade inaccordance withtherespective Agreements.
109. Overall, Members were veryfavourably impressed bytheopenness anddynamism ofthe
Singapore economy; recent growth ratesinthemanufacturing andservices sectors wereparticularly
noted. Innovatory policy andadministrative approaches developed bySingapore inanumber ofkey
sectors were commented on.
110. Some Members were interested inthegeneral approach thatconditions policy making in
Singapore aswellasinSingapore 'ssense ofeconomic identity, given thecombination ofhighGDP
percapita anditsstatus asadeveloping country. Areas where there wasfelttoberoom forfurther
progress included thescope oftariffbindings andreducing remaining restrictions inthefinancial services
sector.
111. Finally, Members expressed theirappreciation oftheleading rôlewhich Singapore continues
toplayintheWTO, andwere confident thatashostcountry Singapore would make animportant
contribution tothesuccess ofthefirstWTO Ministerial Conference inDecember 1996.