NOVEMBER 3 — Only Malaysia and Cambodia have signed reciprocal trade agreements (RTAs) with the United States (US).
The other member countries of Asean have not. Singapore is one of them. The island republic, it is said, has not even agreed on a framework, unlike Thailand and Vietnam.
Could it be that Singapore has a comprehensive free trade agreement (FTA) with the US?
The US has comprehensive free trade agreements in force with 20 countries. The list of countries includes Singapore.
The US-Singapore FTA was signed on May 6, 2003.
Malaysia is not included in the US list. Malaysia’s 16 FTAs (seven bilateral FTAs and nine regional FTAs) does not include the US either.
The focus of an FTA is primarily on economic benefits and encouraging trade between the countries by making it more efficient and profitable.
FTAs usually remove tariffs on goods, simplify customs procedures, remove unjustified restrictions on what can or can’t be traded, and make it easier for business people to travel or live in each other’s country.
FTAs are legally binding. That perhaps explains why Singapore did not “rush” into signing an RTA with the US.
Unlike Malaysia.
Why no Malaysia-US FTA?
* This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.
