Showing posts with label Singapore-US relations. Show all posts
Showing posts with label Singapore-US relations. Show all posts

Wednesday, April 25, 2018

Nobody wants a trade war

Singapore’s prime minister: Nobody wants a trade war

The Washington Post 
Lee Hsien Loong is the prime minister of Singapore.


Trade friction between China and the United States has been brewing for some time. But with the Trump administration’s announcement of unilateral tariffs on imports, targeted at China, the specter of a trade war has never been clearer.

There is broad political support in the United States for such measures. American businesses that had previously advocated China’s accession to the World Trade Organization now feel disadvantaged doing business in China. They feel, with some justification, that the playing field is uneven, market access is limited and investments are restricted, especially in the financial and technology sectors. Trade arrangements and concessions made in the past when China was about 5 percent of the world’s gross domestic product are less readily accepted today with China’s share rising to 15 percent.

But unilateral tariffs are not the correct solution. A trade war between the United States and China is far from inevitable, but if one breaks out, it will gravely undermine the rules-based multilateral system that has underpinned global prosperity since the end of World War II. Countries around the world, big and small, will be hurt.

We believe trade disputes should be resolved within the WTO framework. As economists have pointed out, when assessing economic relationships, what matters is not a country’s bilateral trade balance with a specific trading partner but its overall trade balance with the rest of the world.

Furthermore, the cause of a country’s trade deficit lies at home. A trade deficit is the result of a country consuming more than it produces, and it is neither caused nor cured by trade restrictions.
The United States and China share the most important bilateral relationship in the world. Both countries have benefited from an open, rules-based international order and multilateral trading system. This has fostered economic cooperation within the Asia-Pacific region and deepened interdependence among Asia, the United States, Europe and the rest of the world.



"A trade deficit is the result of a country consuming more than it produces, and it is neither caused nor cured by trade restrictions."




Asia is the fastest-growing export market for U.S. goods and services. As the world’s second-busiest port and fourth-largest financial center, Singapore is a global hub that connects the economies of the United States and Asia. We are a small, open economy with trade flows more than three times our GDP. A trade war between the two largest economies in the world will have a big, negative impact on Singapore.

Since China joined the WTO in 2001, its weight in the global economy and its share of world trade have grown enormously. This has shifted the overall strategic balance. It has also raised reasonable expectations for China to liberalize its markets further and contribute more to the multilateral trading system.

China has declared its commitment to upholding openness and multilateralism. The Asian Infrastructure Investment Bank and the “Belt and Road Initiative” are two major efforts by China to strengthen trade and investment ties, and to enhance integration and interdependence. At the recent Boao Forum for Asia Annual Conference, President Xi Jinping announced further plans to open up China’s financial sector, liberalize foreign investment rules, protect intellectual property rights and lower tariffs on automobile imports. These moves have been acknowledged and welcomed by President Trump. We look forward to seeing these steps elaborated, implemented and bearing fruit.

Although most Asia-Pacific countries continue to pursue trade and economic liberalization — for example, through the Trans-Pacific Partnership and the Regional Comprehensive Economic Partnership — these initiatives will not compensate for the damage caused by a trade war.

Beyond the economic loss, strained ties between the United States and China will make it harder for them to cooperate on other pressing issues such as the denuclearization of the Korean Peninsula, regional security, nonproliferation and climate change. None of these issues can be solved without the full participation of both countries. If any of these disputes escalates and destabilizes relations between the United States and China, the consequences for the world would be disastrous.

Competition between the United States and China is to be expected. But whether this competition takes place within a framework of interdependence and generally accepted international rules makes all the difference. Ultimately, what is at stake is war and peace, and the security and stability of the world. The United States, China and the rest of the world have too much at stake.


This article was first published by The Washington Post.


Tuesday, October 24, 2017

What President Trump Can Learn From Singapore Next Week


By Walter Lohman, Director, Asian Studies Center
20 Oct 2017
KEY TAKEAWAYS

(1) Singapore's Prime Minister Lee Hsien Loong will visit Washington next week. He is the fourth Southeast Asian leader to meet President Donald Trump.

(2) Key topics of discussion are likely to be economics, China, and North Korea.

(3) As President Trump prepares for his trip to Asia next month, he can learn a great deal from Prime Minister Lee.

Next week, when Singapore's Prime Minister Lee Hsien Loong visits Washington, he will become the fourth Southeast Asian leader to meet President Donald Trump. This early engagement, to be followed next month by Presidential attendance at the East Asia Summit in the Philippines and the Asia-Pacific Economic Conference in Vietnam, is a very encouraging indication of continued American commitment to the Western Pacific.

When President Trump came into office, there was quite a bit of anxiety about his commitment to American alliances in Northeast Asia. The 2016 Presidential campaign was an extraordinarily contentious one. As a presidential candidate, Trump made statements about America’s Asia policy that raised concerns in Japan and South Korea, and among American military, and foreign policy experts. Ultimately, however, as time is showing, it is difficult to overlook U.S. allies in Japan and South Korea. They occupy too central a role in America’s foreign policy and force posture in the Pacific. There were more than enough people, including the Japanese Prime Minister himself, to help President Trump understand that, if he truly did not before taking office.

Focusing on Southeast Asia requires more subtle strategic awareness. There are small constituencies that speak for it in the American electorate and a relative handful of Southeast Asian experts in Washington to go to bat for U.S. interests there. Yet, despite this – and very much to its credit—the Trump Administration appears to appreciate its importance. The official statements from Southeast Asian engagements coming out of the White House, including the one announcing Prime Minister Lee’s visit, are replete with references to strategic priorities. That said, the President himself would be well-advised to take on board some of the finer points Prime Minister Lee will make about the strategic picture in the region and the American role in it.

Singapore is a small country with a highly developed economy. Its lack of strategic depth, its economic success, and the fact that it is a multi-ethnic Chinese-majority country, surrounded by countries with Chinese minorities, means it is vulnerable. As a result, leaders of Singapore are very carefully attuned to geopolitical disturbances. They do their best to contribute to stability. Singapore hosts critical U.S. naval logistics capabilities – a role they stepped into in the 1990’s when the U.S. and the Philippines failed to agree on terms that would keep them at Subic Bay. It constructed a naval base, Changi, deliberately designed to berth a U.S. aircraft carrier. And it accommodates the rotation of American littoral combat ships and P-8 patrol aircraft through Singaporean facilities.

On the diplomatic side of things, Singapore offers wise council in the Association of Southeast Asian Nations (ASEAN) and they maintain a very constructive, determinedly independent relationship with China. Accordingly, although they are quiet about it, American audiences in particular will appreciate that Singapore maintains the most positive—albeit, like the U.S., unofficial—relationship with Taiwan that Southeast Asia has on offer. This is worth mentioning because it points to the value Singapore places on the autonomy of its foreign policy. There would be no easier calculation for it than to jettison Taiwan, downgrade or rescind reciprocal representation, and end military exercises it has conducted there since 1975. It could kill its free trade agreement with Taiwan. Every other country in Southeast Asia—as well as the U.S.—have apparently calculated that an FTA with Taiwan is not worth inconveniencing Beijing.

On the face of it, Singapore’s interests in China dwarf anything it can accomplish with Taiwan. But what Singaporean leaders know is that if Beijing can dictate its policy on Taiwan, it will assume it can dictate other aspects of its policy, on the South China Sea, on its relationship with Japan, on military cooperation with the U.S., and on its positions in ASEAN.

So as high as the stakes are in Singapore’s relationship with China, its long-term investment in strategic priorities that contribute to regional stability and principles essential to its survival—like freedom of the seas—are more important. From a Singaporean perspective, it is the Chinese who will have to make the mental adjustment that allows the relationship to work as it does—and they are perfectly prepared to help them do so.

So, what messages is Prime Minister Lee likely to bring to Washington?

First, economics. Singapore has a free trade agreement with the U.S.; it also runs a trade deficit with it. So while trade balance is an indicator too broad to be of much use in any regard, at least in the case of Singapore, it will not distract from a discussion of the larger strategic imperative of American economic engagement. Prime Minster Lee warned the U.S. that a pullout from the Transpacific Partnership (TPP) would be a setback for its strategic interests in the region. With this decision already made, he is not likely to revisit this criticism. One hopes, however, that the Prime Minister will talk to the President about the options the region has for moving forward without the U.S. There is the real prospect of a TPP-11, an agreement modified to exclude the U.S—temporarily the Singaporeans hope. There is the Regional Comprehensive Economic Partnership (RCEP). There is China’s one-belt, one-road infrastructure project. Regarding the latter, there are signs that the Administration is coming to understand the significance of this, but it cannot beat something with nothing. TPP may be dead as far as the U.S. is concerned. These other initiatives are Asia’s plan B. The U.S. desperately needs a plan itself, something more encompassing than renegotiation of trade agreements and imposition of trade remedies.

Second, China. Singapore is very much interested in the trajectory of US-China relations. This is because leaders there understand the challenge that China presents the region. It does not see China’s rise as a “threat” or as a clash between Western and Confucian civilizations. It certainly will not subscribe to the U.S. waging an “economic war” with China—as some of President Trump’s supporters have advocated. Singapore sees the rise of China as a reality that must be managed. Beijing has presented the U.S. with some difficult decisions, on the South China Sea, for instance. And Singapore is both publicly and privately supportive of pushing back in areas like these where it threatens to overturn the regional order. Poor management of the relationship on the part of the United States, however, would also represent a danger to regional stability, and to Singapore. For these reasons, Singapore has an interest in helping American officials understand China in all its complexity. Expect the Prime Minister to appeal to President Trump’s better angels on matters related to China.

Third, North Korea. In one of the Trump Administration’s earliest efforts to reach out to the Southeast, Secretary of State Rex Tillerson met with ASEAN’s foreign ministers in Washington. The very real threat from North Korea’s nuclear weapons program was high on the agenda. Singapore appreciates that and has said so publicly. They can be trusted to comply with UN Security Council (UNSC) Resolutions regarding North Korea’s nuclear weapons program and cooperating with U.S. intelligence agencies and the UNSC’s Panel of Experts to do so.

Singapore is squeezing its limited contact with North Korea, but it does maintain diplomatic relations with it, as do all other members of ASEAN and more than 150 other countries. North Korea is also part of the annual ASEAN Regional Forum. Singapore has no diplomatic mission in North Korea; North Korea has a bare-boned, two person embassy staff in Singapore. Singaporean companies conduct a miniscule amount of trade with North Korea estimated at 0.2% of North Korea’s total—the same share as Luxembourg, Taiwan and Sri Lanka—and declining. During Prime Minister Lee’s visit to Washington, if not in his meeting with Trump, then on Capitol Hill or in other Administration meetings, this contact and ASEAN’s relationship as a whole might be raised. One can expect the Prime Minister to be constructive and open to suggestion.

Singapore is a sovereign country. As such, it is, of course, occupied with protecting its own national interests. The analysis of its leaders and diplomats is honest and insightful. It is not entirely objective. It is colored, at least in part, by Singapore’s geostrategic fate and what Michael Leifer—the most prominent scholar of Southeast Asian international relations of his generation—once called a “foreign policy rooted in a culture of siege and insecurity.” Singapore’s prescriptions cannot be bought wholesale by American political leaders and officials. They come at foreign policy from a much different historical and material perspective. But Singapore does offer extremely valuable advice and an enlightened concept of its national interest that has consistently aligned it with the United States. As a result, for decades, it has long been among the most persistent advocates of for a robust U.S. presence in the Asia-Pacific. As President Trump prepares for his trip to Asia next month, he can learn a great deal from Prime Minister Lee about how best to establish and maintain this.


Notes: 

  • As director of The Heritage Foundation’s Asian Studies Center, Walter Lohman oversees the think tank’s oldest research center.

  • Prime Minister Lee Hsien Loong is currently in the United States on an official working visit to Washington D.C. and will be meeting President of United States (POTUS) Donald Trump in the White House on 23 Oct.

Article source: The Heritage Foundation




PM Lee Hsien Loong speaking at the Economic Club of Washington, D.C



PM Lee Hsien Loong speaking at the Economic Club of Washington, D.C. on 23 October 2017.




PM Lee Hsien Loong held a dialogue at the Economic Club of Washington, D.C. on 23 October 2017




PM Lee was on an Official Working Visit to Washington, D.C. from 21 to 26 October 2017.

Video source: Prime Minister's Office, Singapore YouTube Channel


Wednesday, September 13, 2017

Singapore Air Force supports hurricane relief in Texas

The RSAF's CH-47 Chinook helicopters


We are proud that Singapore is able to do whatever it can to support the hurricane relief efforts.

Our care and prayers goes out to all who have been affected by the hurricane.


Singapore Air Force supports hurricane relief in Texas
By Sgt. Michael Giles | 100th Mobile Public Affairs Detachment | September 06, 2017 
(Reposted)

CAMP MABRY, Texas—Thirty-four members of the Republic of Singapore Air Force in CH-47 Chinook helicopters coordinated with the Texas National Guard's 372nd Combat Sustainment Support Battalion to resupply Joint Task Force Harvey personnel with food and water.

The airmen with Singapore's Peace Prairie Detachment supported hurricane relief efforts by delivering supplies to Brenham, Texas, on Aug. 30 in support of Joint Task Force Harvey.

The contribution toward Harvey relief efforts reflects an ongoing partnership between Singapore and Texas, according to an Aug. 30 Singapore Ministry of Defence statement.

Prime Minister Lee Hsien Loong said, "This was a small gesture to express our appreciation and gratitude to the U.S., and in particular the State of Texas, which have been good hosts for our Peace Prairie Detachment."

Texas has hosted Singapore's Peace Prairie Detachment at the Grand Prairie Army Aviation Support Facility in Dallas since the detachment's inauguration in May, 1996. In that time, they received training at the Joint Readiness Training Center and in Exercise Red Flag, and trained alongside Texas Guard members in large-scale emergency response exercises. They put this training to use as they coordinated with the Texas Guard in response to Hurricanes Katrina in 2005, fire and flood operations in Texas in 2000, and Hurricane Floyd in 1999.

The Singaporean detachment has been fulfilling a crucial role in helping resupply food and water to service members on the ground, said Lt. Col. John Crawson, commander of the Texas Army National Guard's 36th Sustainment Brigade.

"We have Soldiers down in the joint operations area that are relying on our resupply," Crawson said. "They're relying on our MREs and bottled water. And when they begin to get very low on supplies, it's very crucial that I get them there."

Crawson said that sling load operations are necessary when flooding prevents effective ground travel. The Singaporean detachment is an ideal partner in these situations, because they frequently rehearse these capabilities with Texas Guard members during their annual training.

"We are extremely grateful for their support and we will continue to ask them to help us out," Crawson said.