IS SINGAPORE DISADVANTAGED BY THE FTA WITH THE US?
Recently Mr Foong Swee Fong made an interesting post on Facebook (reprinted in the box below for those interested). Foong is one of those few Singaporean writers that I follow. Not necessarily that I agree with everything he says but I like the topics raised and different views. This particular post has issues that are right down my alley so I like to confront. The gist of Foong's post is Singapore is disadvantaged in the US-SG FTA. Note that I am not critical of the messenger, just trying to add value to a discussion from my perspective. So I shall just stick to the facts, not the rhetoric. Claim #1: Most of the trade is just supply chain shuffling with little value added The claim made is yes, trade increased partly due to the FTA, but it's just parts moving between 2 countries taking advantage of free tariffs. There is no value-added and consumes resources. It is meaningless for Singapore and it is economically wasteful. This looks like artificial trade. ...