Benefits of Bilateral Trade on Singapore

Topics: International trade, World Trade Organization, Free trade Pages: 3 (1068 words) Published: October 24, 2010

Presently countries are to share mutual strengths and overcome mutual weaknesses through combined efforts. As a result, countries are coming closer through various trade agreements like regional free trade agreements, bilateral free trade agreement even through cross-regional free trade agreements. Geographical distance is not an issue to act as a barrier today. ITC facilitates one touch connection between two cross-regional business interests. Signing bilateral free trade agreement is not only creating the condition for closer relations among the nations but also providing a common platform to act in a united fashion in other multilateral platforms like, multilateral trade negotiation in the World Trade Organization (WTO) and even in the global political arena under the UN. On the other hand, executing bilateral free trade agreement is comparatively easier than the regional or multilateral ones. Singapore is one of the countries that took these advantages. Singapore was founded as a British trading colony in 1819. The population of Singapore on October 22nd 2010 is approximately 5,024,650 ( with the ethnic groups percentage of 74.1% Chinese, 13.4% Malay, 9.2% Indian and 3.3% other ethnics. The key issues that will be discussed are on the beneficial of bilateral free trade on Singapore and the example agreement will be taken from two countries; Japan and USA. A bilateral free trade has been agreed with Japan in early 2001; so that the reduction on tariff on a mutual recognition of national standards for Japanese bulk that need to be exported to Singapore such as machinery and equipment, business and financial services, chemical and mineral product. In the other hand, Singapore exports to Japan are concentrated in the service sector such as customs automation, electronic commerce & services trade. On customs automation, the concentration will be on the reduction of customs cost...
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