In 1998, GLOBAL TRADE AND INVESTMENT WERE ADVERSELY; AFFECTED BYTHE DRAMATIC FALL IN IMPORT DEMAND IN THE CRISISRIDDEN ASIAN COUNTRIES AND THE WORSENING DOMESTIC ECONOMIC SITUATION IN JAPAN.

DESPITE THIS, SINGAPORE AND ALMOST ALL OTHER ECONOMIES CONTINUED TO PURSUE UNILATERAL MARKET OPENING MEASURES. THERE WAS LITTLE EVIDENCE OF SERIOUS MARKET CLOSURE OR FUNDAMENTAL REVERSALS IN TRADE POLICIES.

WORLD TRADE ORGANISATION (WTO)

The 2nd Ministerial Conference in 1998 launched a work programme to develop recommendations on the implementation of the WTO Agreements and its future negotiating agenda. A moratorium on E-commerce duties was also imposed.

Further Liberalisation

Multilateral rules on t he domestic regulation of the accountancy sector were adopted. These rules would enter into force together with those being developed for other professional services. This would facilitate the expansion efforts of our lawyers, engineers and doctors.

Singapore ratified the 5th Protocol on Financial Services in 1998. This has since come into force and opened up a US$58 trillion world-wide market in banking, securities and insurance. Singapore also granted two additional licences for the provision of basic telecommunication services, thus exceeding its liberalisation commitments.

Dispute Settlement and Trade Defence

Singapore participated as a third party in two WTO Disputes in 1998. Against the US on Import Prohibitions of certain Shrimp and Shrimp Products, Singapore successfully secured a result that ensured that our exports of shrimp products to the US would be accorded fair treatment. However, the WTO ruled against Singapore in favour of the EU on Customs Classification of Certain Computer Equipment.

We continued to assist exporters affected by 17 on-going anti-dumping and safeguards cases. This included Government-to-Government representations.

Future Focus

The 3rd Ministerial Conference in Seattle is the focus for 1999. The aim is to launch a New Round of WTO negotiations on 1 January 2000. Our fundamental goal for the New Round is to ensure further trade liberalisation by achieving, among others:
· Substantial liberalisation in agriculture, services and industrial tariffs;
· Stepped up work on trade facilitation;
· A conducive international operating environment for e-commerce; and
· International commitments on government procurement.

We continue to make headway in negotiations for the entry of China and Chinese Taipei in to the WTO. We hope that both parties can successfully conclude their entry talks this year. When these parties join the WTO, our traders can be assured of increased market access and more transparent and objective trading rules in these territories.

Increasingly, the WTO focuses on ensuring that domestic rules are not used as projectionist measures, and how to address 'new' issue such as competition policy, electronic commerce and non-trade concerns (e.g. labour, environment). Singapore participates actively in these discussions. In Geneva, TDB officer Sivasinthamany Sumasundram, chairs the WTO Working Party on GATS Rules.

ASIA PACIFIC ECONOMIC COOPERATION (APEC)

APEC is an important grouping to Singapore, accounting for 80% of its global trade. With the exception of EU, Singapore's top 10 trading partners are APEC members.

To prepare APEC economies for the new millennium, APEC Leaders in November 1998 resolved to support and early and sustained recovery of the Asia-Pacific region of capacity building to enable economies to participate and benefit fully from liberalisation.

APEC has affirmed its role as a catalyst for the Multilateral Trading System. The APEC Trade Ministers Meeting in June 1999 called for broad-based multilateral negotiations in the WTO, and the inclusion of industrial tariffs in addition to negotiations on agriculture and services. The APEC Leaders and Ministerial Meeting in September 1999 is expected to give further support to the WTO process.

SINGAPORE'S FAITH IN THE WTO TO MAINTAIN THE MULTILATERAL TRADING SYSTEM WAS STRENGTHENED DURING THE ASIAN CRISIS. GOVERNMENTS ABIDED BY THEIR INTERNATIONAL COMMITMENTS IN SPIRIT AS WELL AS LETTER, AND KEPT MARKETS OPEN. THIS CLEARLY AUGURS WELL FOR COUNTRIES SUCH AS OURS WHICH ARE AGAINST PROTECTIONISM.

Free Trade Agreement (FTA) Negotiations

Singapore intends to being negotiations with New Zealand on a FTA later in 1999. Singapore's first even FTA negotiations outside of ASEAN should be comprehensive and liberaalise trade in goods and services by 2010.

The reasons for the FTA are for strategic rather than immediate economic benefits for New Zealand and Singapore. We see the Singapore-NZ FTA as a stepping stone towards an APEC-wide FTA. Already, we plan to participate in study groups with Mexico and New Zealand-Chile on the possibility of entering into FTA negotiations.

Mutual Recognition Agreements (MRAs)

Singapore has initiated negotiations on MRAs with Australia and New Zealand. The MRAs would save our traders time and costs to deliver their products to these markets. At the strategic level, the MRAs will lead to greater international recognition of Singapore's standards and conformity assessment infrastructure.

We aim to conclude the MRAs by mid-2000 in key sectors: electrical and electronics equipment; telecommunications equipment; chemicals; pharmaceuticals, and machinery.

ASEAN

Our main mission was to keep attention focused on the long-term goals of trade and liberalisation, despite the economic and political difficulties afflicting some the members. Our neighbours had a similar vision, thus enabling ASEAN to continue to make good progress in economic co-operation.

At their Summit in December 1998, ASEAN leaders agreed on a series of bold measures to accelerate the implementation of the ASEAN Free Trade Area (AFTA). For example, the six original ASEAN members will speed up the Common Effective Preferential Tariff (CEPT) reductions to reach 100 percent by 2002. The leaders also agreed on the establishment of the ASEAN Investment AREA (AIA), to provide for the free flow of direct investments within the grouping and from non-ASEAN sources into ASEAN.

Other significant strides included the signing of a Framework Agreement on Mutual Arraignments for product standards and conformance, to cut down on wasteful duplication in testing of products destined for ASEAN markets. By 31 March 1999, a trade liberalisation package was implemented in five priority sectors under the Framework Agreement on Services, namely, business, air transport, maritime transport, tourism and telecommunications. A Framework Agreement on the Facilitation of Goods in Transit was signed to help to streamline transport, trade and customs rules.

Singapore also mooted the idea of joint investment road shows to major developed countries, namely Japan, Europe and the US to draw investments back to the region, in view of the economic recovery of ASEAN. Singapore will be organising and leading the ASEAN road show to the US.

ASIA - EUROPE METING ( A S E M )

Some progress was made in improving the environment for trade and investment in Europe and Asia under the ASEM agenda.

A Trade Facilitation Action Plan, aimed at reducing trade barriers and promoting Asia-Europe trade flows, was adopted by the ASEM Leaders at the London Summit in April 1998. The Plan focuses on priority areas namely: customs procedures, standards and conformance, public procurement, quarantine and Sanitary and Phyto-Sanitary procedures, intellectual property rights, mobility of business people and market access in distribution.

Top ASEM business leaders, including Singapore businessmen, participated in the Asia-Europe Business Forum (AEBF). This dialogue provided useful feedback to governments on trade and investment related policies and at the same time, helped promote Asia-Europe economic co-operation.

ACCORDING TO THE 1998 SURVEYS CONDUCTED BYTYHE POLITICAL & ECONOMIC RISH CONSULTANCY (PERC) AND THE INTERNATIONAL INSTITUTE LOF MANAGEMENT DEVELOPMENT (IMD), SINGAPORE CONTINUES TO HAVE THE BEST LEVEL OF IPE PROTECTION IN ASIA. THE IMD HAS ALSO RANKED SINGAPORE 4TH {WORLWIDE} IN TERMS OF IPR PROTECTION, AHEAD EVEN OF THE UNITED STATES.

ASIA - EUROPE METING ( A S E M )

Initiated by PM Goh Chok Tong during his official visit to Chile in September 1998, the forum aims to strengthen the historically weak linkage between Asia and Latin America, both of which are perceived to be emerging pillars of the global economy. TDB's contribution to the EALAF will centre on fostering economic cooperation. The first senior officials' meeting of the EALAF is scheduled for September 1999 in Singapore.

INTELLECTUAL PROPERTY RIGHTS { I P R }

The CSC had envisioned Singapore to be a knowledge-based economy comprising high value-added and high content industries. The high intellectual content of these new industries and the rapid pace of technological development require large investments by companies. A high standard of IPR protection is necessary to protect the returns from these investments.

Legal Initiatives

By January 1999, Singapore had achieved full compliance with our obligations under the WTO Agreement on Trade Related Aspects of Intellectual Property one year ahead of the deadline. Singapore also strengthened the IP legal framework and made it more attractive for foreign investors to invest in knowledge-based industries. Some new legislation include the Geographical Indications Act and the Layout-Designs Act, as well as amendments to the Copyright Act and Trademark Act.

Education Initiatives

To educate the public on the adverse effects of piracy and IPR issues, we started an IP Education Programme together with the IPR agencies and IP Associations.

Posters carrying the programme's theme, "Stop Piracy! Be Original. Buy Original" was launched in December 1998, together with a three-month intensive radio airplay of IP education messages from entertainment artistes and radio DJs from NTUC Media Co-operative Ltd. The success of the programme has prompted the international IP Association - Business Software Alliance (BSA) - to present an award to Singapore for our IP education efforts. TDB received the award on behalf of the Singapore Government.

Enforcement Initiatives

The relevant authorities - Singapore Police Force, Films and Publications Department, Customs and Excise Department - and the IP agencies have continuously taken vigilant enforcement actions against pirates. In 1998, the authorities arrested 157 persons in nearly 700 raids and inspections and seized over 2 million infringing articles.