REMARKS BY MR LIM HNG KIANG,
MINISTER FOR TRADE AND INDUSTRY (TRADE),
AT THE US INDEPENDENCE DAY 2016 RECEPTION
AT MARINA BAY SANDS CONVENTION CENTRE
ON THURSDAY, 30 JUNE 2016, 7.45PM
Ambassador Wagar and Mrs Wagar
Your Excellencies
Distinguished Guests
Ladies and Gentlemen
1. I am honoured to join all of you today to celebrate the 240th Independence Day of the United States of America.
2. This is a happy occasion as we also celebrate 50 years of diplomatic relations between Singapore and the United States. Over the past half a century, the friendship between both our countries has grown in both breadth and depth. Our enduring partnership has been underpinned by two key agreements – the US-Singapore Free Trade Agreement and the Strategic Framework Agreement, which established Singapore as a Major Security Cooperation Partner of the US.
3. Singapore’s ties with the United States are robust and longstanding, and built on many areas of common interest and shared strategic perspectives. Singapore firmly shares the US’ belief in the principles of free trade and open markets. In the early days of our independence, investments by American MNCs in Singapore helped develop our fledgling manufacturing base. The US-Singapore FTA not only anchors our economic ties but will continue to drive the thriving economic relationship between our two countries. The facts speak for themselves. Last year, the United States was Singapore’s 3rd largest trading partner in goods, and our top trading partner in services. The United States remains the largest foreign direct investor in Singapore. Investment stock from the United States was S$150 billion in 2014, representing a 28% year-on-year increase. Conversely, in 2014 Singapore was the United States’ largest trading partner in ASEAN and the 4th largest Asian investor. The ASEAN region is poised to become an increasingly important market. ASEAN is the United States’ 4th largest export market, and supported close to half a million jobs in the United States in 2013. We believe there is huge potential for our bilateral economic relations to grow as we tap on the opportunities together.
4. Singapore and the US are both parties to the Trans-Pacific Partnership agreement that was signed in February this year after five and a half years of negotiations. I’m sure US Trade Representative Mike Froman would agree, that it was not an easy deal to negotiate – 12 parties, each with their own national interests to protect and issues to push. But we did it, through many late nights, informal discussions and give and take. The TPP sets ambitious targets and as a 21st century FTA, is unprecedented in scope and ambition. Collectively, TPP parties represent nearly 40% of global GDP, a third of global trade, and comprise a market of 800 million people, making it the largest regional trade agreement to-date.
5. In economic terms, according to the Peterson Institute for International Economics, the TPP is projected to increase annual real incomes in the United States by US$131 billion, and annual exports by US$357 billion by 2030[1]. The economic potential of the Asia-Pacific region presents tremendous opportunities. The TPP is more than just a trade agreement. Trade is strategy. More significantly, the TPP will send a strong signal of the US’ commitment and confidence in the region. It will also anchor the United States in the region, and allow it to continue playing a key role in Asia’s economic growth story. Singapore strongly supports the swift ratification of the TPP by all parties.
6. Singapore has always valued America’s unique role in maintaining peace and stability in the region. This has given Singapore and other countries in the region the time and space to develop and prosper over the last 70 years. It was for this reason that we concluded the 1990 Memorandum of Understanding which facilitated the United States’ continued military presence in the region and the 2005 Strategic Framework Agreement to deepen security cooperation. Our defence agreement was updated last December with the signing of the Enhanced Defence Cooperation Agreement to include cooperation in new areas such as humanitarian assistance, biosecurity and cybersecurity. Singapore has continued to host the rotational deployment of the United States’ Littoral Combat Ships and P-8 Poseidon aircraft. This provides timely support for regional humanitarian assistance and disaster relief and maritime security efforts.
7. Apart from continuing to grow the traditional key pillars of our bilateral relationship in defence and economic cooperation, Singapore and the United States work closely together in many other areas including security and law enforcement, and educational exchanges. We also cooperate closely on global and regional issues such as countering violent extremism, counter-proliferation and climate change. We are working together to enhance the capabilities of our ASEAN neighbours through the Singapore-US Third-Country Training Programme.
8. PM Lee made two separate visits to the US this year and will be making a third very soon. His first was in February for the ASEAN-US Summit in Sunnylands, followed by another in March for the Nuclear Security Summit in Washington DC. At President Barack Obama’s invitation, PM Lee will make an official visit to Washington in August. The last official visit to the US by a Singaporean Prime Minister was by Mr Lee Kuan Yew, in 1985. We are deeply honoured by the invitation, and confident that PM Lee’s visit will further strengthen the ties between our two countries for many more years to come.
9. On this joyous occasion of the 240th Independence Day of the United States of America, we celebrate and reaffirm the excellent partnership between Singapore and the United States. May the friendship between our countries continue to grow and flourish as it has over the last 50 years.
10. Ambassador Wagar, Excellencies, Ladies and Gentlemen, it gives me great pleasure to propose a toast to His Excellency the President of the United States of America and to the deep and enduring friendship between our two countries.
[1] Source: Peterson Institute for International Economics (PIIE), The Economic Effects of the Trans-Pacific Partnership, published January 2016.