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Business Times
2 days ago
- Business
- Business Times
The lasting impact of FTAs amid global trade shocks
AS THE US-Singapore Free Trade Agreement (USSFTA) marks its 20th year, the United States' imposition of a 10 per cent baseline tariff on Singapore casts a long shadow over two decades of strong economic partnership between the two countries. Endorsed by the US Congress on the basis that it would 'enhance and strengthen the strong US-Singapore trade relationship', the USSFTA was the US' first free trade agreement (FTA) with an Asia-Pacific country and remains its only FTA with an Asean country. Today, sweeping tariffs imposed by the US constitute the most significant disruptions in the history of global trade. The ongoing trade war and US retreat from multilateralism seems to threaten not only US-Singapore bilateral relations but also the open, rules-based global trading system. 'The era of rules-based globalisation and free trade is over,' remarked Prime Minister Lawrence Wong in a recent ministerial statement. Unilateral measures such as tariffs, regardless of the good intentions, undermine the predictability that the existing global trading system was designed to uphold. The shift towards one-on-one negotiations, as seen in recent US trade policy, allows countries to leverage their market power at the expense of smaller countries such as Singapore that often have weaker bargaining strength. The result is weakening trust and stability in global trade. However, it is important to recognise all is not lost. Established through years of working together, institutionalised cooperation proves resilient. We believe FTAs have a lasting impact that will continue to anchor economic ties. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Quiet resilience of established institutional frameworks FTAs provide a sense of continuity in a volatile trade environment by establishing clear rules and standards. As commitments from these agreements spread across countries, the resulting regulatory harmonisation strengthens economic cooperation. The far-reaching influence of FTAs is exemplified by the USSFTA. Many of its core provisions, such as those on competition policy, have been widely replicated in subsequent US bilateral agreements and mega-regional trade deals. Shared commitments on competition policy help create a more secure and predictable legal environment for investors. Further, e-commerce facilitation provisions introduced in the USSFTA now reflect the baseline for digital trade regulation in FTAs. Newer agreements build on the digital trade rules included in the USSFTA, broadening the scope of commitments to cover nascent issues like cross-border data flows and cybersecurity. Institutional frameworks facilitated by FTAs also remain intact, sustaining stable and open channels of cooperation. For example, notwithstanding current trade disruptions, government procurement provisions in the USSFTA which provide opportunities for firms of each nation to bid on government contracts are still in effect. Singapore's Competition Act of 2004, enacted as part of its obligations under the USSFTA, further demonstrates how trade agreements can have a long-term impact on domestic legal and policy frameworks. The implications of these longstanding institutional frameworks are profound: trade and investment ties run deep. Research by Asia Competitiveness Institute finds that US exports of advanced manufacturing and professional services to Singapore have surged fivefold since the inception of the USSFTA. These exports have facilitated the creation of over half a million jobs in the US between 2000 and 2019. A recent study by the institute also finds that the USSFTA facilitated US expansion of manufacturing activities in Singapore, particularly in chemicals, pharmaceuticals and electronics. Today, the US is the top source of inward foreign direct investment for Singapore, accounting for more than half of the greenfield investments in high value-added and research-intensive sectors. Existing institutional frameworks thus stand the test of time, providing a stable foundation for robust economic relations. Enduring attraction of trade pacts FTAs continue to hold strong appeal as tools of economic integration. Many agreements are being upgraded to address emerging trade priorities, such as tackling non-tariff barriers and enhancing supply chain resilience. The Asean-Australia-New Zealand Free Trade Area (AANZFTA) Upgrade entered into force in April this year and the Asean-China Free Trade Area (ACFTA) Upgrade is slated to be formalised by October. The FTA between Singapore and the Pacific Alliance – a Latin American bloc comprising Chile, Colombia, Mexico, and Peru, and collectively representing the world's ninth-largest economy – has entered into force for three of the five signatories. New forms of institutional arrangements are also emerging to complement traditional FTAs. Digital Economy Agreements (DEAs), designed to set high-standard rules for digital trade, are increasingly becoming key instruments of economic integration. The world's first DEA, the Digital Economy Partnership Agreement (DEPA) signed in 2020, continues to attract interest from a wide range of economies. As at July 2025, seven countries – China, Canada, Costa Rica, Peru, the United Arab Emirates, El Salvador, and Ukraine – have applied to join the DEPA. Singapore and the European Free Trade Association (EFTA) also concluded negotiations on a DEA earlier this month. Talks for Asean's Digital Economy Framework Agreement, expected to be the world's first regional digital economy agreement, are slated to conclude by the end of the year. These efforts to upgrade existing FTAs and forge DEAs reflect the growing demand for forward-looking frameworks suited to evolving economic realities. In particular, countries are seeking institutional mechanisms to govern the burgeoning digital economy. A coherent digital trade governance regime enables countries to better leverage new avenues of growth in digital trade, where more than two-thirds of new value created over the next decade are expected to be driven by digitally enabled platforms. Institutionalised cooperation: a stabilising force for the future Evidently, far from abandoning institutionalised frameworks, countries are deepening and modernising them. Next-generation arrangements continue to embed legal commitments, cultivating stronger cooperation and reinforcing a rules-based system for global trade. Further, countries have continued to deepen cooperation on trade despite the current absence of US involvement. Following US withdrawal from the Trans-Pacific Partnership (TPP), the remaining member countries chose not to abandon the pact. Instead, they pushed forward with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The CPTPP is now one of the world's largest trade blocs, second only to the Regional Comprehensive Economic Partnership (RCEP) of which the US is also not a member. As Senior Minister Lee Hsien Loong notes, 'even though the US is abandoning the rules (…) the rest of the world is still there, and if we can work together, I think we have a fair shot at keeping the system up'. The dangers of a changing global trade landscape are profound and real, but continued commitment to institutionalised forms of cooperation remains a critical stabilising force that keeps the global trading system alive. Jesslene Lee is a researcher at Asia Competitiveness Institute (ACI), Lee Kuan Yew School of Public Policy. Paul Cheung is director of ACI.
Straits Times
5 days ago
- Business
- Straits Times
Veteran diplomats and tech pioneer given honorary degrees by NUS
Find out what's new on ST website and app. (From left) Honorary graduands Chan Heng Chee, Dr Noeleen Heyzer and Wong Ngit Liong, and NUS president Professor Tan Eng Chye (far right) during the graduation ceremony on July 14. SINGAPORE – Veteran diplomats Chan Heng Chee and Noeleen Heyzer, as well as tech pioneer Wong Ngit Liong, received honorary degrees from the National University of Singapore (NUS) on July 14. The honorary Doctor of Letters degrees were presented by Education Minister Desmond Lee at the commencement ceremony for 99 graduates from the NUS Business School, held by NUS at the University Cultural Centre. The honorary degrees are the university's highest form of recognition for outstanding individuals whose service has had an impact in Singapore and globally. Professor Chan Heng Chee is an NUS alumna who graduated with first class honours in Political Science in 1964 when it was then known as the University of Singapore, and returned to do her PhD in 1974. She was NUS' first female head of Political Science, before being appointed to lead the new Institute of Policy Studies in 1988. In 1996, at the start of her 16-year stay in Washington as Singapore's UN Representative and Ambassador to the United States, Prof Chan deepened ties, culminating in the US-Singapore Free Trade Agreement which was signed in 2003. In a citation, Professor Simon Chesterman, NUS' vice provost and dean of NUS College, said that through her career transitions, from academic to diplomat and then public intellectual, Prof Chan brought together a rare combination of intellectual independence and global experience. 'Throughout her career, Ambassador Chan has helped to shape how Singapore understands itself and how Singapore is understood by the world... at a time when expertise is not always valued quite as much as it is needed,' he said. While students of her time were focused on being 'present-ready' to grapple with political developments of the time such as Singapore's separation from Malaysia, Prof Chan said universities today have to prepare students to be 'future-ready'. With unpred icta bility and volatility being the new normal in 2025, she said students need to also develop an interest in politics and geopolitics. Addressing the graduands, she encouraged them to understand and follow what is happening in the world and locally, as it is crucial for their futures. 'Going forward, geopolitics is an inescapable part of our future, and we should be prepared to ride it, to deal with it,' said Prof Chan. Ambassador-at-Large Chan Heng Chee (left) being conferred the Honorary Doctor of Letters by Education Minister Desmond Lee on July 14. ST PHOTO: MARK CHEONG Fellow honorary degree recipient and NUS alu mn a Noeleen Heyzer was former Under-Secretary-General of the UN and the highest ranking Singaporean in the UN system from 2007 to 2014. A leadership pioneer for women, Dr Heyzer was the first woman from outside North America to head the UN's Development Fund for Women, and the first woman to serve as the executive secretary of the UN's Economic and Social Commission for Asia and the Pacific since its founding in 1947. Calling her a trusted voice in global governance, NUS' vice provost of student life and acting dean at the Lee Kuan Yew School of Public Policy Leong Ching said that Dr Heyzer is a trailblazer for women's empowerment across the world. 'Her leadership has redefined the nature of power itself – as a force for dignity, inclusion, and transformation,' said Prof Leong. Speaking at the ceremony, Dr Heyzer said that she is blessed to be born and raised in Singapore, where social mobility was provided for many, including her and her family. 'The transformative role of education and the thirst for learning played a big part in my evolving life,' she said. She called on graduates to provide new leadership in a world filled with paradox and disruptions, but also immense possibilities. Said Dr Heyzer: 'We are not just inheriting an emerging new world order. We are called to co-create it.' Dr Noeleen Heyzer being conferred the Honorary Doctor of Letters by Education Minister Desmond Lee on July 14. ST PHOTO: MARK CHEONG Mr Wong Ngit Liong, the final honorary degree recipient, is the executive chairman and founder of Venture Corporation. Since its inception in 1984, Mr Wong has led the company's evolution from a start-up in electronics manufacturing services into a globally recognised technology powerhouse. In public service, Mr Wong has been on numerous national boards and committees, including the Economic Development Board, 2002 Economic Review Committee and Singapore Exchange, among others. In a citation, Professor Aaron Thean, NUS' provost and deputy president of academic affairs, called Mr Wong a 'distinguished leader and pioneer in the global technology industry'. He added that as chairman of NUS' Board of Trustees from 2004 to 2016, Mr Wong's leadership was crucial in the university's structural transformation, including its propulsion into the ranks of the world's top universities. Recounting NUS's transformation since 2005, Mr Wong said he was part of a team that toured top universitie s in the US, Europe and China to learn and exchange ideas. Mr Wong Ngit Liong, executive chairman and founder of Venture Corporation, speaking after being conferred the Honorary Doctor of Letters by Education Minister Desmond Lee on July 14. ST PHOTO: MARK CHEONG Though foreign experts were invited to review local tertiary education strategy and curriculum, he said after some years, they were no longer needed. 'We adopted best practices, learned and leapfrogged to greater heights... We are so much more ahead of them, that they now have to learn from us,' said Mr Wong. A total of 17,646 students will receive bachelor's or graduate degrees this year from NUS at ceremonies taking place over 12 days from July 10 to July 21.
Indian Express
12-07-2025
- Business
- Indian Express
From Donald Trump's pick for Singapore ambassador to 'embarassador': Why Anjani Sinha grilled in US Senate
Anjani Sinha, US President Donald Trump's nominee for ambassador to Singapore, faced intense criticism during his Senate confirmation hearing on Wednesday after struggling to answer basic questions about the island-state and US interests in the region. Sinha, an orthopaedic surgeon and entrepreneur with no diplomatic background, was pressed by Democratic Senator Tammy Duckworth on issues ranging from Singapore's trade surplus to the country's role in ASEAN and the US Navy's presence in the region. His inconsistent and often incorrect responses drew swift rebuke. Dr Anjani Sinha, a Florida-based orthopaedic and sports medicine surgeon, was nominated by President Trump in March to serve as the US Ambassador to Singapore. Hailing originally from India, Sinha graduated from MGM Medical School and Delhi University with a Master's in Orthopedic Surgery and has worked across both public and private health sectors in the US. He is also an entrepreneur who built a network of clinics across New York and later served as a senior surgical consultant in Florida. Trump praised him as a 'highly respected entrepreneur' and posted on Truth Social: 'I have no doubt that Anji will strongly represent our Nation's Interests, and put America First. Congratulations Anji!' The US State Department cited his 'native respect for both American and Asian values' and strong business background in the Indo-Pacific region as reasons for his selection. He and his wife, Dr Kiki Sinha, a retired anesthesiologist and former NYU faculty member, as per a document by Department of State, have donated to several educational institutions in the US and India. During the Senate confirmation, Duckworth questioned Sinha's knowledge of US-Singapore relations, ASEAN, and key regional issues. The nominee stumbled repeatedly, most notably when asked about Singapore's trade surplus with the US. He first claimed it was $80 billion, then corrected himself to $18 billion. The actual figure, Duckworth said, was just $2.8 billion. Dr. Anjani Sinha is deeply unprepared to effectively lead our nation's diplomatic mission in Singapore.⁰ ⁰He will not have my vote. — Tammy Duckworth (@SenDuckworth) July 9, 2025 When Senator Duckworth asked him when will Singapore chair ASEAN next, Sinha incorrectly stated that Malaysia currently held the position. Duckworth, a retired Army National Guard Lieutenant Colonel and the first Thai-American woman elected to Congress, pressed him again, prompting a pause, before finally supplying the correct answer herself: '2027'. Sinha also appeared uncertain while trying to defend President Trump's tariffs on Singapore. On April 2, Trump had announced a baseline 10 per cent tariff on imports from Singapore — despite a longstanding free-trade agreement between the two countries since 2004. Higher tariffs are anticipated in specific sectors, including semiconductors and pharmaceuticals. Attempting to justify the decision, Sinha said: 'I believe in the president's decision of a free trade … and he's resetting the trade numbers with each country and he's open for discussion and dialogue with these countries.' Duckworth pointed Singapore's strategic importance during the hearing, describing it as 'one of the most important alliances, friends' that the US has in the Indo-Pacific. She added that it was a key location where the US would be 'going to be fighting against [its] greatest adversary in the region, the PRC', referring to China. The most heated moment came when Duckworth, visibly frustrated, accused Sinha of treating the posting like a 'glamour job.' Duckworth told Sinha: 'You are not currently prepared for this posting, period, and you need to shape up and do some homework.' She added, 'You think this is a glamour posting, that you're going to live a nice life in Singapore, when what we need is someone who can actually do the work.' President Donald Trump's pick to serve as ambassador to Singapore, Anjani Sinha, faced tough questioning during a Senate confirmation hearing in which he struggled to answer inquiries from Illinois Democrat Tammy Duckworth about the city-state and its ties to Washington.… — Bloomberg (@business) July 10, 2025 The exchange has since gone viral in Singapore, where the US maintains significant strategic and economic interests. Critics online have mocked Sinha's lack of preparation, with one comment as reported by BBC, labelling him 'more embarassador than ambassador.' Despite the grilling, Sinha defended his candidacy, calling himself a 'lifelong bridge builder' and pledging to strengthen ties with Singapore. He was introduced at the hearing by Republican Senator Lindsey Graham as 'a friend of President Trump for over a decade.' A final vote on Sinha's confirmation remains pending.
India Today
11-07-2025
- Business
- India Today
Unqualified for Singapore posting: Senate grills Trump's pick Anjani Sinha
India-born Anjani Sinha, US President Donald Trump's nominee for Ambassador to Singapore, faced sharp criticism during his Senate confirmation hearing, with lawmakers questioning his preparedness and qualifications for the high-stakes diplomatic role. Democratic Senator Tammy Duckworth called him unqualified for the position and said he needed to shape up and do his an orthopaedic surgeon and an entrepreneur, struggled to respond to basic questions about Singapore's geopolitical significance and the US-Singapore relationship – drawing a pointed rebuke from Senator Duckworth, according to a BBC nomination was announced by Trump in March, who described him as a "highly respected entrepreneur". During the confirmation hearing by the Senate's foreign relations committee, he was introduced by Republican Senator Lindsey Graham as "a friend of President Trump for over a decade", according to the his introduction and responses to senators' questions, Sinha described himself as a "lifelong bridge builder" and pledged to "create a very strong relationship with Singapore" while vowing to "defend the defence, security, and economic ties".SINHA GAVE INCORRECT NUMBERS ON TRADE TIES WITH SINGAPOREDuckworth opened her questioning by asking Sinha about Singapore's trade surplus with the US, to which he first responded with $80 billion (Rs 6.68 lakh crore), before changing his answer to $18 billion (Rs 1.50 lakh crore).Eventually, Duckworth noted the correct figure was $2.8 billion (Rs 23,380 crore).When asked how he would justify Trump's 10% tariff, imposed in April, to Singaporeans, Sinha gave multiple responses before concluding that "the dialogue is not closed".During the hearing, Sinha mistakenly stated that Malaysia currently chairs ASEAN and did not know that Singapore is set to take over the role in 2027."You are unqualified for this position," Senator Duckworth said during the hearing. She added that he needed to "shape up and do some homework.""You've not even done your homework, sir," Duckworth said."You think this is a glamour posting, that you're going to live a nice life in Singapore, when what we need is someone who can actually do the work," BBC quoted her as that Singapore is a key US ally in the Indo-Pacific, Duckworth said, "You are not currently prepared for this posting, period, and you need to shape up and do some homework."The exchange sparked a wave of online criticism from Singaporeans, with many questioning Sinha's performance and his suitability for the role of US to the BBC report, despite the controversy, Sinha's confirmation remains a strong IS ANJANI SINHA?Anjani Sinha was born in India and is a graduate of MGM Medical School and Delhi University. He has a Masters in orthopaedic surgery, according to the US State is a distinguished surgeon on the US East Coast specialising in orthopaedics and sports medicine. He is an accomplished entrepreneur, and has served as a senior surgical consultant in State Department also said that Sinha has native respect for both American and Asian values, and has deep social and cultural ties to the Indo-Pacific region. Hence, he is uniquely positioned to relate to key appreciation for Singapore's role as a financial hub, and his own business expertise – particularly in the life sciences and healthcare sectors – render him well qualified to serve as US Ambassador to Singapore, the State Department also said.- Ends
Online Citizen
10-07-2025
- Business
- Online Citizen
Trump's nominee for Singapore ambassador, Anjani Sinha, faces tough Senate grilling over knowledge gaps
Dr Anjani Sinha, US President Donald Trump's nominee for ambassador to Singapore, came under heavy scrutiny during his Senate confirmation hearing before the Senate Foreign Relations Committee on 9 July 2025. The hearing, which also assessed four other nominees for diplomatic positions, quickly became tense when Democratic Senator Tammy Duckworth, a Thai-American military veteran, began her line of questioning. In his opening remarks, Sinha thanked President Trump for his trust and Republican Senator Marco Rubio for his support. He described Singapore as the United States' 'key strategic partner and friend' in the Indo-Pacific. He promised that, if confirmed, he would aim to expand defence and security ties, deepen economic relations, and enhance people-to-people exchanges between the two nations. Republican Senator Lindsey Graham warmly endorsed Sinha's nomination. Graham, who has known Sinha for years, highlighted Singapore's robust medical community, adding that the nominee's medical background made him an excellent match. Senator Pete Ricketts also spoke favourably of Sinha's potential to strengthen relations with Singapore's leadership. Ricketts recounted meeting Prime Minister Lawrence Wong, Foreign Minister Vivian Balakrishnan and Defence Minister Chan Chun Sing during the Shangri-La Dialogue earlier this year. Duckworth's scepticism and pointed questions However, Duckworth quickly set a stern tone, warning that an ambassadorship in Singapore was not a role to be taken up on a whim. She told Sinha directly that she feared his lack of preparedness could strain the US-Singapore relationship, which she described as critical in countering regional threats, including from the People's Republic of China. When Duckworth quizzed Sinha on the size of the US trade surplus with Singapore in 2024, Sinha initially gave an incorrect figure of US$80 billion, then changed it to US$18 billion. Duckworth corrected him, stating the actual surplus was only US$2.8 billion. She used this discrepancy to question his understanding of economic ties between the two countries. JUST NOW: Tammy Duckworth grills Dr. Anjani Sinha, Donald Trump's nominee to be the next Ambassador to Singapore, who clearly has no idea what he is doing at all — Marco Foster (@MarcoFoster_) July 9, 2025 Tariffs and diplomatic challenges Duckworth further asked Sinha how he would explain to Singapore the Trump administration's decision to impose tariffs despite the trade surplus. In April 2025, the administration imposed a 10 per cent tariff on Singaporean goods, with the president having threatened duties as high as 25 per cent. Sinha avoided giving a direct opinion on the tariffs. Instead, he reiterated that he supported Trump's overall trade policy, describing it as an effort to 'reset trade numbers' through dialogue. Pressed again by Duckworth to clarify his stance, Sinha did not commit to opposing or supporting the tariffs specifically targeting Singapore. Knowledge gaps on ASEAN and security ties Duckworth then tested Sinha's familiarity with ASEAN matters. She asked when Singapore would next chair ASEAN. Sinha failed to provide the answer, which Duckworth noted was 2027. When asked what Singapore's priorities might be as chair, Sinha's response was dismissed by Duckworth as too broad and lacking depth. The senator also sought details on the US Navy's cooperation with Singapore, which Sinha failed to specify. 'You want to be ambassador to Singapore, one of our most important alliance friends in the Indo-Pacific,' Duckworth said sternly. She stressed that the role required someone who understood both the strategic significance of Singapore and the complexities of regional security. Duckworth's warnings on treating Singapore as a 'glamour posting' Duckworth warned that Singapore's rich culture and high living standards should not blind nominees to its importance as a security partner. She accused Sinha of failing to take the position seriously enough, repeating her point that the post could not be treated as a reward or an escape to an attractive city-state. 'This nation is too important to the United States, to ASEAN, to the entire region,' Duckworth said. 'I just feel that you are not taking this seriously, and you think this is a glamour posting that you're going to live a nice life in Singapore.' Duckworth has previously challenged other nominees on their grasp of regional affairs. During an earlier hearing, she pressed Defence Secretary Pete Hegseth on his knowledge of ASEAN member states, with similarly unimpressive results. Sinha's defence and claims of personal ties Defending his suitability, Sinha highlighted his medical background, portraying himself as a 'bridge builder' accustomed to fostering strong professional ties. He emphasised that, if confirmed, his first priority would be to establish close working relationships with Singapore's leadership. Sinha also pointed to personal connections, noting that he and Singapore's Foreign Minister Balakrishnan share a medical background. He claimed that both he and Balakrishnan had trained at the same medical school, with Sinha specialising in orthopaedics while Balakrishnan became an eye surgeon. Sinha also stated that their wives shared similar professional paths, claiming Balakrishnan's spouse is a neurologist. However, this statement was factually incorrect. Joy Balakrishnan, the minister's wife, is an educator and active community volunteer, not a medical doctor. According to the Mainly I Love Kids Fund, which she co-founded in 2004, Joy Balakrishnan has dedicated herself to community work and previously led Girl Guides Singapore. Trump's endorsement and the nomination process In March, Trump announced Sinha's nomination on Truth Social, describing him as a 'highly respected entrepreneur' who would put 'America first'. Sinha, a practising orthopaedic surgeon on the US East Coast, has built multiple medical practices across New York and works as a senior consultant in Florida. He holds a Masters in Orthopaedic Surgery from Delhi University and MGM Medical School in India. Under US law, ambassadors are nominated by the president and must be reviewed by the Senate Committee on Foreign Relations. The committee may hold hearings to question nominees before voting on whether to advance the nomination to the full Senate. If approved by the committee, the full Senate then votes on whether to confirm the nominee. Once confirmed, the ambassador presents credentials to the host government.
