Transcripts of Opening Remarks, Comments and Doorstop Interview by Minister for Foreign Affairs George Yeo at the Trans-Pacific Strategic Economic Partnership Press Conference in New York, 22 Sep 2008

TRANSCRIPT OF OPENING REMARKS BY MINISTER FOR FOREIGN AFFAIRS GEORGE YEO DURING THE TRANS-PACIFIC STRATEGIC ECONOMIC PARTNERSHIP AGREEMENT PRESS CONFERENCE, 3.00 PM, W TIMES SQUARE, NEW YORK, 22 SEPTEMBER 2008

This is a simple ceremony but one with great significance. If you look at the global trading system, it can only function well with leadership. It can only function well if countries big and small feel a sense of responsibility for the integrity of the global trading system.

The WTO is made up of many countries, some 150-plus countries. But countries carry different weights. The 21 economies of the Asia-Pacific make up 60% of the global GDP and account for some 50% of global trade. It is the centre of the global economy and unless the Asia-Pacific countries exercise the leadership role and feel a deep responsibility, the global trading system and the WTO cannot work.

When the P4 Trans-Pacific Strategic Economic Partnership was established some years ago, it was designed with an open architecture. It was designed to take into account traditional areas of agriculture and NAMA but also putting particular emphasis to the issues of the 21st century - the weightless economy, intellectual property and services -because the growth in the coming years will be in that weightless economy. We took care to ensure that the agreement we had fully incorporated that future. It was designed in a way which would enable other countries to plug-in when they are ready, like the internet, like the TCP/IP protocol. Designed to high standards, open to anyone who subscribes to the protocol with one condition, that it remains open ended, that you leave behind a port open for somebody else who wants to plug-in. In other words, it adopted a plurilateral approach with the hope in the future that the system will be multi-lateralised.

From this perpective, with the US joining the P4, it would now have a catalytic effect on the entire Asia-Pacific, cause a greater integration and in turn pull the global trading system along. So we see a direct connection between what we announce today and the future of the Asia-Pacific and the WTO.

For this day to be possible, a day which many of us have looked forward to for years, we have to pay tribute to USTR Susan Schwab for exercising the leadship. Without the US finally deciding to join us this catalytic effect could not have come about.

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TRANSCRIPT OF COMMENT BY MINISTER FOR FOREIGN AFFAIRS GEORGE YEO DURING THE TRANS-PACIFIC STRATEGIC ECONOMIC PARTNERSHIP AGREEMENT PRESS CONFERENCE , 3.00 PM, W TIMES SQUARE, NEW YORK, 22 SEPTEMBER 2008

Q: First, how does this weigh against the argument by some that there has been a proliferation of trade agreements that could scupper moves to order a WTO deal. Two, particularly to Minister Yeo, how does this fit into the ASEAN move to create a free trade area and ASEAN link to China on a FTA that's basically the biggest FTA in the world?

Minister: First, we must make sure that the bilateral or regional Free Trade Agreement should be WTO-consistent, WTO-class and comprehensive. If it meets those conditions, then the FTA would be a building block. In fact, such an FTA would create a competitive dynamic for greater multilateral trade liberalisation. And indeed this is what we have found in Asia, that through these networks of trade agreements, we have put pressure on countries which are less willing to move initially, to also come along. We believe that by stirring the pot here, in the Asia Pacific, it would lead others to also come along. From that perspective, we believe that what we are launching today will have a very helpful effect on the long term goals of the WTO.

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TRANSCRIPT OF DOOR-STOP INTERVIEW MINISTER BY FOR FOREIGN AFFAIRS GEORGE YEO AT THE CONCLUSION OF TRANS-PACIFIC STRATEGIC ECONOMIC PARTNERSHIP AGREEMENT PRESS CONFERENCE, 3.30 PM, W TIMES SQUARE, NEW YORK, 22 SEPTEMBER 2008

Q: (inaudible)...What other countries are do you have in mind?

Minister Yeo: There could be one or two other countries. I know Vietnam is studying it closely. They are aware that their economy at a low level and they would need certain phasing-in accommodations. But I am hopeful that other countries will also come along.

Q: Do you view this as a way for the US, who has been cynical about trade negotiations to pick off ASEAN and APEC countries that do want trade deals and leave out the ones that are difficult to deal with?

Minister: Everybody tries to do that - to manoeuvre in a way, maximising its own national advantage. But in the summation of it all, the system benefits. This is a part of the competitive process.

Q: You talked about complication in negotiations. Which obstacles do you see bearing a few problems?

Minister: Dairy products for one would be an issue which is sensitive to some of the countries. Not to Singapore, but certainly to the US. It was to Chile when Chile and New Zealand negotiated a FTA.

Q: Anything for Singapore in particular?

Minister: For Singapore, agriculture is not a problem. NAMA is not a problem. Our interest is in the future, specifically intellectual property and services. A stronger template we have for a weightless economy the better it would be for us.

Q: In current days we have seen the financial markets rocked around the world. Here you are reaching out, trying to do business with the very country that some would blame for spreading contagion through their bad fiscal policies...

Minister: The great worry at this time is that with the possibility of job losses, countries would turn protectionist in their trading schemes and that would be very bad. Globalisation in the last ten to twenty years had added trillions of dollars to global welfare. And the reverse of globalisation, will result in equivalent losses. So particularly at a time like this it is so important to push forward the global trading agenda. It is for the same reason that the failure of the WTO talks in Geneva in July was a great disaster.

Q: (inaudible)

Minister: (inaudible)...there is loss of global demand. Even though China, India and some other emerging economies would be able to take up some slack, they would not be able to make up for the loss of demand in the US and the developing economies.

Q: You spoke of the future and some new countries would be brought into the pact. Would it be under the same circumstances?

Minister: Well if they come in before we begin negotiations, then we can negotiate at the same time. It will be part of the same negotiating process. In November, the APEC leaders would be having the Summit in Lima, Peru. I hope by that time there would be one or two or more countries that would have decided to come along as well.

Q: The White House is going to change one way or another; do you see any impact on this?

Minister: A new US administration will have a separate trade policy. But if you remember Singapore's own trade negotiation with US on the FTA, it was launched in the last days of the Clinton administration. In fact, after the elections were over. But that did not stop us from eventually concluding it with the Republican Administration.

Q: Just to clarify. The agreement it self covers all goods and services or is it confined to certain areas?

Minister: No. It would be comprehensive. That is clear.

Q: Comprehensive. OK. And when the US comes in now, I understand there was some kind of 90% when the other four countries joined in, right? 90% of goods were already liberalised and already ...?

Minister: What is the question?
Q: I mean when the US enters into this pact, how would this tariff levels be, for example. Is there a certain kind of cut...

Minister: We should not prejudge the outcome of negotiations. No sector is a priori excluded. It would be comprehensive, then let us see how each country can optimise it own national position. Thank you.

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