SINGAPORE TRADE MINISTER PUSHES FOR ROBUST U.S. TRADE

UNCLAS SINGAPORE 000295 STATE PASS USTR NEW DELHI FOR EHRENDREICH SENSITIVE SIPDIS E.O. 12958: N/A TAGS: ECON ETRD APECO SN SUBJECT: SINGAPORE TRADE MINISTER PUSHES FOR ROBUST U.S. TRADE AGENDA ¶1. (SBU) Summary: In a March 20 speech to a U.S. business conference, Minister of Trade and Industry (MTI) LIM Hng Kiang issued a strong call for the United States to resist protectionism and adopt a "robust" free trade agenda. He charged the United States with a special role and responsibility as the anchor of the world economy to lead a global movement for free trade and investment. Lim said that U.S. participation in APEC and the Trans-Pacific Partnership multilateral trade agreement would signal a clear U.S. commitment to the region, but warned of the "stakes of exclusion" if it failed to do so. In a separate meeting, MTI PermSec Menon pressed visiting Ambassador Michalak on U.S. economic engagement in the region. A link to Lim's speech is in paragraph 7. End Summary. ¶2. (SBU) In the keynote speech of the annual meeting of the Asia-Pacific Council of American Chambers of Commerce (APCAC) in Singapore, Lim called on the new U.S. administration to elevate trade as a priority and craft a "robust free trade agenda". Lim said that as the world's largest economy the United States had a responsibility to lead a global movement to create an environment of free trade and investment. Lim heralded U.S. leadership on post-war liberalization of trade and investment, saying it had contributed to growth and prosperity around the world. Noting that trade did not currently appear to be high on the U.S. agenda, he urged the United States to "resist the temptation of protectionism" and lead the world to economic recovery. ¶3. (SBU) Lim put forth a subtle warning, saying that the United States needed to recognize both "the promise of participation and the stakes of exclusion" in deepening its economic engagement with Asia. Lim specifically pushed for a U.S. commitment to participate in the Trans-Pacific Partnership (TPP) multilateral trade agreement, of which Singapore is a member. (Note: The United States announced its intention to join the full agreement in September 2008, but in February requested a delay to the beginning of negotiations. End note.) ¶4. (SBU) Lim said U.S. participation in the TPP would be seen as an important signal that the United States remained committed to the region. He argued that Asian countries would continue deepening economic linkages and integration in any case, and suggested that U.S. investors and businesses could be "left out of the game" if the United States backed away from a free trade agenda. Lim cited a Brookings Institute study that estimated welfare gains of US$156 billion to the United States from a larger Free Trade Agreement of the Asia-Pacific (FTAAP) that could eventually evolve from the TPP. He claimed that an FTAAP could also curb the U.S. trade deficit with China, as exports to China would grow more quickly than imports from China. MTI Pushes Ambassador Michalak on Engagement -------------- ¶5. (SBU) On the margins of the APCAC conference, MTI Permanent Secretary Ravi Menon (who during Singapore's APEC host year also serves as Chair of the Senior Officials' Meeting) met with visiting U.S. Ambassador to Vietnam Michael Michalak and, like Minister Lim, argued forcefully for U.S. participation in the TPP. He said also that Singapore was heavily focused on persuading Vietnam to join the United States, Australia and Peru in participating in the TPP negotiations. Menon said the TPP agreement needed to incorporate developed and developing countries and must not be perceived as an "Anglo institution". ¶6. (SBU) Lim also pushed for active U.S. participation in APEC, noting that APEC was the only regional forum that included the United States at a Leaders' level. Lim described U.S. chairmanship of APEC in 2011 as an opportunity to strengthen APEC and to demonstrate firm U.S. engagement in Asia. ¶7. (U) The text of Minister Lim's speech can be downloaded at http://www.news.gov.sg/public/sgpc/en/media_r eleases/ agencies/mti/speech/S-20090320-1.html. SHIELDS