WTO MEETING IN SEATTLE (Impact on Singapore economy and workers)

Mr Thomas Thomas asked the Minister for Trade and Industry what will be the impact of the failed World Trade Organisation (WTO) meeting in Seattle on the Singapore economy and the Singapore worker.

BG George Yong-Boon Yeo: Mr Speaker, Sir, the failure of the Seattle WTO Ministerial Conference to launch a New Round of multilateral negotiations is a great disappointment to us. Although it has no immediate impact on the Singapore economy, as a trading nation, we are naturally concerned that the momentum of multilateral trade liberalisation could falter as enthusiasm wanes in the wake of Seattle. We are also concerned about the systemic implications, in particular political support for the institution of the WTO in various countries. Already, protectionist forces, emboldened by their perceived victory in Seattle, are now on the offensive. For example, labour groups and NGOs in the US have publicly stated that their next target is to block the granting of permanent Normal Trade Relations with China when the issue comes up before the US Congress this year.

Singapore will work with other like-minded countries towards the expeditious resumption of negotiations at Geneva. A New Round which takes into account the interests of all WTO members would be important in ensuring that the world does not slip into protectionism. There is a danger that if we do not push forward on trade liberalisation, then we will gradually move back.

In parallel, Singapore will pursue complementary regional and bilateral initiatives, especially within APEC, to further the cause of multilateral trade liberalisation.