Trade war benefits nobody, says Finance Minister Heng Swee Keat

A TRADE war benefits nobody, and within Asean, there continues to be strong support for free trade and integration said Heng Swee Keat, Minister for Finance.

Singapore is monitoring closely the US trade measures and rising tensions with China, said Mr Heng on Thursday. He was speaking to reporters ahead of the 4th Asean Finance Ministers and Central Bank Governors' meeting which will be held in Singapore next week.

"We have to work very hard to ensure it does not escalate because at the end of the day, a trade war will benefit nobody and it will damage all economies," he said.

In Australia two weeks ago, Prime Minister Lee Hsien Loong said recent moves by the United States to protect domestic industries have raised the spectre of tit-for-tat trade wars.

He urged countries to continue promoting free trade.

Mr Heng said within Asean, there are many members who continue to be very strong supporters for free trade and integration within Asean.

Discusssions are moving ahead on how to integrate our economies, not just on the trade side, but also services and the capital markets, he said.

There are also discussions between Asean and RCEP members on sustaining momentum for trade liberalisation, he said.

The RCEP is a multilateral free trade pact involving Asean, China, Australia, New Zealand, India, Japan and South Korea.

On a question if Singapore has been affected by the US trade tariffs, he said, "At this stage we've not seen a major impact yet" adding that "these are warning signs that we better build a consensus for free trade."

Singapore is seeking product exclusions from United States tariffs on steel and aluminium, the Ministry of Trade and Industry (MTI) said last week.

The MTI said it is working closely with companies and other stakeholders on seeking possible product exclusions for steel and aluminium." We are also engaging the relevant US departments on the latest trade actions," said a ministry spokesman.

Trade tensions have risen with the announcement of planned US tariffs on up to US$60 billion of Chinese goods, and China's retaliatory list of potential tariffs on US$3 billion worth of goods from the US.