Ahead of Apec Summit, IPEF negotiators ‘focused on getting the job done’, says US commerce official
At US$310 billion, the size of US investments in Singapore is larger than the US’ investment in China, Japan and South Korea combined
Lee U-Wen
NEGOTIATORS from the US, Singapore and 12 other countries are working hard with “a sense of urgency” to conclude the talks on the Indo-Pacific Economic Framework (IPEF) initiative as soon as possible, a senior US commerce official told The Business Times.
A deal on the first of four pillars, on supply chains, was reached in May, and discussions are picking up pace for the remaining three on trade, the clean economy and the fair economy.
“The IPEF is central to our economic engagement with this region,” said Arun Venkataraman, the US assistant secretary of commerce for global markets, in an interview at the US Embassy in Singapore.
“This year alone, we’ve had four or five negotiating rounds, and as we speak, our teams are in Kuala Lumpur for another round and they are focused on getting the job done.”
Last week in Washington, Singapore’s Deputy Prime Minister Lawrence Wong spoke at a dialogue where he expressed hope for “substantial progress” in the IPEF discussions by the time the US hosts the Asia-Pacific Economic Cooperation (Apec) summit in San Francisco next month.
The IPEF, which was launched in May last year, is US President Joe Biden and his administration’s main economic initiative in Asia.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
It is part of the US’ efforts to step up its economic engagement with Asia to compete with China after Biden’s predecessor Donald Trump withdrew the US from the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
The 14 IPEF partners are Australia, Brunei, Fiji, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, the US and Vietnam. Together, they account for 40 per cent of global gross domestic product and about 28 per cent of the world’s goods and services trade.
Venkataraman said the breakthrough in reaching a deal on supply chains a year into the IPEF’s launch showed what could be done when the partners come together and are on the same page.
The deal on supply chain was notable as it is the first multi-country arrangement to strengthen the resilience and connectivity of supply chains through collective and individual actions.
“We have been equally aggressive in pursuing progress on the other pillars. I share (DPM Wong’s) ambition that we hope to make substantial progress, and I believe we will do so in the course of the coming weeks,” he said.
“The IPEF was developed during the pandemic, and in light of the vulnerability and challenges that the pandemic revealed in all our economies. It demonstrated the need for us to double down on our partnerships with our friends and partners around the world.”
During the interview, Venkataraman, who is also the director-general of the US and Foreign Commercial Service, gave an update on the progress of the US-Singapore Partnership for Growth and Innovation (PGI).
This initiative – a pathfinder for new ways to deepen economic integration between the US and South-east Asia – was launched in October 2021 by Singapore’s Trade and Industry Minister Gan Kim Yong and US Secretary of Commerce Gina Raimondo.
The PGI aims to increase collaboration between US and Singapore companies by strengthening trade and investment ties in four areas – the digital economy and smart cities; advanced manufacturing and supply chains; clean energy and environmental technologies; and healthcare.
Under the ambit of the PGI, government and industry leaders will also gather to discuss how to strengthen supply chain resilience. To date, more than 100 companies have participated in PGI-branded activities.
“The PGI was launched with a view to take the bilateral commercial relationship to a whole new level, by finding ways to create new commercial opportunities and demonstrate alignment on a range of policy areas,” said Venkataraman.
“In each of those areas, we’ve been able to pull our industries together and showcase our commercial collaborations… We’ve also been able to support a significant amount of two-way investment that not only creates jobs, but really further deepens that economic integration.”
According to latest available figures, the US is the largest foreign direct investor in Singapore, with an investment stock worth S$421.8 billion in 2022.
At US$310 billion, the size of US investments in Singapore is larger than the US’ investment in China, Japan and South Korea combined. Singapore is the US’ third-largest Asian investor after Japan and South Korea, with investment stock valued at US$57.5 billion in 2022.
“We are building on a foundation of confidence and commitment to the Singapore market,” said Venkataraman. “As American companies pursue further diversification of their supply chains, Singapore and South-east Asia will continue to be an attractive destination.”
Copyright SPH Media. All rights reserved.
