RESTRICTED
WORLD TRADE WT/TPR/G/14/Add.1
14May1996
ORGANIZATION(96-1885)
Trade Policy Review Body Original :English
TRADE POLICY REVIEW
SINGAPORE
REPORT BYTHE GOVERNMENT
EXECUTIVE SUMMARY
Addendum
1. Thisreport bytheGovernment ofSingapore focuses ondevelopments since thefirstreview
in1992 ofSingapore 'strade policies withrespect totheirobjectives, formulation andcoordination.
Inlinewiththeexpanded coverage oftheWorld Trade Organization (WTO), thisreport alsocovers
thenewareas ofservices andintellectual property.
2. Theprimary objective ofSingapore 'strade policies remains unchanged, i.e.tomaintain an
opentrading régime sothattradegrowth contributes tosustainable non-inflationary economic growth
inthelongterm. Fortheperiod 1992-1995, theSingapore economy registered double-digit growth
of10.4and10.2percentintheyears 1993 and1994 before moderating toamore sustainable rate
of8.9percentin1995.
3. Theeconomy benefited fromstrong regional growth andafavourable global electronics cycle,
withgrowth being ledbythemanufacturing, andtransport andcommunications sectors. Theother
keysectors alsorecorded good growth in1995. theeconomy isprojected togrow at7-8percentin
1996.
4. Singapore 'strade alsoenjoyed robust growth; itwasranked asthe12thlargest exporter and
importer in1994 bytheWTO, from the18thand15thpositions heldrespectively in1990. TheUS,
theEU,Japan, Malaysia andHong Kong remained Singapore 'stoptrading partners. Theshare of
Singapore 'sglobal exports andimports withthese countries were66and70percentrespectively over
theperiod of1992-1995. Singapore alsoaccounted for53percentofintra-ASEAN trade in1994.
Inaddition, Singapore continued toenjoy increasing tradewiththeEastAsian markets ofChina, South
Korea andTaiwan.
5. InlinewithSingapore 'sfirmcommitment totrade liberalization withthemultilateral trading
system, itparticipated actively intheUruguay Round (UR) ofmultilateral trade negotiations which
wereconcluded during theperiod under review. Among Singapore 'smostsignificant commitments
wasitssubstantial increase inthescope ofbindings from 0.5percentpre-UR to70percentofall
itstariff lines. Inservices, Singapore committed tomaintain itspresent levelofopenness inawide
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range ofsectors including business services, communication services, construction andengineering
related services, financial services, environmental services, tourism andtravel-related services, and
transport services.
6. Singapore believes thattheWTO Agreement willhaveapositive impact onitstrade. Itis
estimated thatthefullimplementation oftariff commitments bymember countries would result in
accumulated potential tariff savings ofatleastUS$333 million forSingapore 'sexports toitsmajor
markets. Singapore alsoanticipates benefits stemming from enhanced market access, improved
transparency andamore efficient andexpeditious dispute settlement mechanism inthepost-UR era.
7. There havebeensome keydevelopments intradepolicy measures sincethefirstreview. Import
duties on406items wereabolished inJanuary 1994. Asaresult almost all(about 98percentofall)
imports enterSingapore duty-free. Another significant development isSingapore 'simminent accession
tothe1994 Agreement onGovernment Procurement. Already anobserver intheCommittee on
Government Procurement, Singapore hasstarted bilateral negotiations withsignatories following its
tabling ofinitial offers inDecember 1995.
8. Theservices sector accounted for74percentofSingapore 'sGDP in1995. Themajor
sub-sectorswerefinancialandbusinessservices,commerce,transportandcommunications.Singapore's
aimistobeavalue-adding node fortrade, logistics, financial services, headquarters services,
communications andinformation. Infrastructure andmanpower resources continue tobedeveloped
intheseareas.SingaporehasalsomadecommitmentsundertheGeneralAgreementonTradeinServices
(GATS),viewingitasanimportantachievementoftheUR,andattachinggreatimportancetoitseffective
implementation. ItisSingapore 'shopethattheoutstanding sectoral negotiations willbesuccessfully
concluded.
9. Singapore 'sexisting legislation governing thevarious aspects ofintellectual property rights
arebeing reviewed inlightoftheAgreement onTrade-Related Aspects ofIntellectual Property Rights
(TRIPs). Singapore hasestablished anInter-Ministry Committee (IMC) toreview thelegislation and
torecommend changes required tomeettheobligations under theTRIPs Agreement. Oneofthefirst
tasks oftheIMCwastheamendment ofSingapore 'sPatent Actwhich came intoeffect on1January
1996.
10. Thechallenge forSingapore liesincontinuing tosecure access foritsproducts andservices
totheglobal market. Tothisend,Singapore aimstomaintain itscompetitive edgebyadhering to
freemarket principles, opencompetition andrational economic policies, aswellasinvesting inhuman
resources, infrastructure, technology andinnovation. Singapore 'sability tosellitsproducts andservices
depends onabarrier-free world trading environment. Inthatrespect, Singapore isfirmly committed
tothemultilateral trading system astheprincipal andmosteffective platform fortradeandinvestment
liberalization. Singapore alsosupports regional initiatives thatcomplement andhelpcatalyse theprocess
oftrade liberalization atthemultilateral level. Itisonthebasisofthisprinciple thatSingapore plays
anactive rôleinregional groupings suchasASEAN andAPEC. Singapore alsolooks forward toa
successful inaugural WTO Ministerial Conference (MC) inDecember thisyearthatwould serve as
amodel forsubsequent MCs andprovide newimpetus toglobal trade liberalization.